Ecuador: Selling gold

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Having defaulted “by choice” in the past, Correa continues to pave the way for issuing debt in the future: Ecuador Sends Gold Bricks to Goldman Sachs in Liquidity Hunt Ecuador agreed to transfer more than half its gold reserves to Goldman Sachs Group Inc. for three years to give the government easier access to cash. Money quote (emphasis added): The deal comes as the South American country’s government, which defaulted on about $3.2 billion of bonds five years ago, seeks to cover a budget deficit forecast by the Finance Ministry to swell to a record $4.94 billion this year. . . .

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