Ecuador calls $740 million of global bonds due 2012

New York, March 28 - Ecuador said it will redeem $740 million of its $1.25 billion of global bonds due 2012.

Funding for the redemption will come from $400 million of credit from the Fondo Latinoamericano de Reservas (FLAR), granted to Ecuador in recent weeks, and $340 million from part of the proceeds of December's $650 million global bond offering.

Minister of economy and finance Diego Borja Cornejo said in a news release that the call is intended to reduce the burden of Ecuador's external debt.

In addition, the redemption will save $20 million a year in interest costs.

Cornejo said that Ecuador is considering a further redemption but has not yet decided whether to go ahead.

The bonds become callable at par on March 31 and the redemption will occur 45 days later.

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