Perspectives 2019 2020 Public Sector

64 Conducting Sovereign Liability Management: An Indispensable Step to Building Up Economic Strength After the tender offer period ended, 90% of the 2020 Bond holders expressed interest in participating in the tender offer. This gave Ecuador the opportunity to use favorable market conditions and roll an important part of its Government securities maturing in 2020 for debt maturing in 2029. Overall, Ecuador was able to repurchase $1,175 million of their overall government debt maturing in 2020, which represents 78.4% of its bonds maturing in 2020. The tender offer operation provided an important reduction to Ecuador’s funding figures for its 2020 maturities; these were reduced to a manageable $325 million. This comes at a time when the Liability Management provides a meaningful debt maturity extension to Ecuador Government of Ecuador’s priority is to minimize increases of its outstanding debt, and take steps towards achieving fiscal sustainability targets as outlined in its economic strategy. As a result, the LM operation significantly mitigated refinancing risk for 2020, extended the average life of Ecuador’s government debt portfolio, and allowed an overall debt stock reduction. 68 0 0 1,500 2,878 1,187 63 1,791 3,500 3,000 2,000 2,125 150 0 1,000 2,000 3,000 4,000 Retap bond Tendered Bonds Outstanding Bonds 2030 2029 2028 2027 2026 2025 2024 2023 2022 2021 2020 2019 2018 (US$ Million)