Ecuador Notes Jump to One-Year High As Noboa Pushes Tax Hike

Feb. 7, 2024, 4:13 PM UTC

Ecuador’s dollar bonds were the biggest gainers in emerging markets on Wednesday as traders welcomed President Daniel Noboa’s move to use his line-item authority to raise the value-added tax, signaling a resolve to contend with the nation’s budget deficit.

The nation’s bonds due in 2030 jumped 1.1 cent to 55.6 cents on the dollar, the highest level in a year, according to indicative pricing data collected by Bloomberg. Notes due in 2035 soared 0.9 cent to 43.9 cents on the dollar, also a one-year high.

In a line-item veto of a tax package passed by the assembly earlier Tuesday, ...

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