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| | RGE - Economonitor Archive 2007-01 |
 | | In general, a default on February 15 would mean an extra incentive for holders of the 2030s to stay out of any restructuring deal, since they get extra principal if they stay out for more than a year after the default. |
 | | If I was Ecuador, I wouldn't worry about the cross-default clause, however, since it requires that the holders of the 2012s accelerate their bonds in order for there to be a credit event on the 2030s. |
 | | What's more, the 2030s are Ecuador's cheapest-to-deliver bond, which means that in the event of a default, anybody who has bought protection in the CDS market will need to get their hands on one of the 2030s to swap for their payout. |
| www.rgemonitor.com /blog/economonitor/archive/2007-01 (5143 words) |
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