ECUADOR UNABLE TO SERVICE DEBT - CENTRAL BANK
ecuador cannot service its debt owed to
private foreign banks due to the earthquake that forced a
suspension of crude oil exports, central bank officials said.
    "we hope to obtain a tacit, explicit acceptance from foreign
banks ... that we are not able to service the debt," central
bank president carlos julio emanuel said.
    "the reality is that our debt service capacity has been
totally affected by the recent cataclysm," he added in a news
conference last night.
    A central bank spokesman said emanuel was referring to
payments owed private foreign banks, already suspended since
january. These banks hold two-thirds of the country's 8.16
billion dollar foreign debt.
    Emanuel was not refering to debts to foreign governments
and multilateral organisations, the spokesman said.
    The march 5 earthquake damaged an oil pipeline, preventing
crude exports for a projected five months. Oil generates about
two-thirds of ecuador's total exports and as much as 60 per
cent of the government's revenues.
    Emanuel did not specify how long ecuador would be unable
service private foreign banks. But finance minister domingo
cordovez said two days ago the government is seeking to
postpone all payments due to private foreign banks in 1987
until next year through negotiations with creditors.
    Emanuel said ecuador was seeking soft loans from
multilateral organisations for reconstruction work. It also
wanted a "reprogramming" of already-approved loans, an apparent
reference to the disbursement schedule of thee credits.
 Reuter
