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To: Rarebird who wrote (39937)	9/2/1999 11:12:00 AM
From: Rarebird	Read Replies (2) \| Respond to of 116791

ECUADOR DEFAULTS Ecuador default triggers change Default has cast a shadow on Ecuador's borrowing horizons Last week Ecuador won itself a place in economic history books when it became the first country to default on its Brady debt. The default doesn't just set a first for Ecuador, it is also likely to set a precedent for how government and investors behave when borrowers default. The question is: whose responsiblity is it when a borrower can't pay the money it owes? Last year, official lenders, such as the IMF, came under fire for effectively bailing out private investors with public money during and after the Asian crisis. The motivation for "bail outs" has long been the fear of what default could mean for stability in the region as a whole, and the impact any default could have on the banks who lent the money in the first place. But in the wake of the crisis, both the IMF and the US Treasury made it clear that they would like to find a mechanism which "share the burden" with the private sector when the next economic crisis hit. news.bbc.co.uk