Luxembourg-based banks have been ordered to freeze all Ecuadorian assets after a settlement charge of $391mn to Anglo-French oil company Perenco remains unpaid. In 2021, Ecuador’s government had pledged to pay the settlement sum after the World Bank’s International Centre for Investment Disputes (ICSID) had ruled in favour of Perenco following the South American nation’s breach of a production sharing agreement with the company. While Ecuador’s economy ministry reassured Perenco that it will honor the settlement on Monday, Perenco insists that it has not “received a single dollar from Ecuador”. The company added that it will “take steps to enforce its payments rights against Ecuador in Luxembourg and other jurisdictions.” Meanwhile, holders of Ecuador bonds listed in Luxembourg have claimed to receive interest payments due on the securities on July 31.

Ecuador’s 0.5% 2040s are trading 2 points lower at 40.25 cents to the dollar, yielding 5.96%.

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