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Ecuador says it has investor backing for $17.4 bln debt restructuring

Ecuador said on Monday it has won investor support to move ahead with a $17.4 billion renegotiation of its foreign debt, a victory for the South American nation that has suffered under the coronavirus pandemic and low oil prices.

Adds details on announcement, context on debt talks

Aug 3 (Reuters) - Ecuador said on Monday it has won investor support to move ahead with a $17.4 billion renegotiation of its foreign debt, a victory for the South American nation that has suffered under the coronavirus pandemic and low oil prices.

The government of President Lenin Moreno in July offered investors the chance to swap 10 existing notes for three new bonds maturing in 2030, 2035 and 2040, in efforts to save billions of dollars in debt service amid a severe cash crunch.

"The Republic announced today that, based on consents delivered as of 4:00 p.m. Central European Time on August 3, 2020, it had obtained the Requisite Consents to modify all series of Eligible Bonds as proposed in the Invitation," the country said in a statement.

President Lenin Moreno via Twitter said the plan would allow Ecuador to "free up resources for social protection and the reactivation of the economy."

(Reporting by Alexandra Valencia and Brian Ellsworth)

((brian.ellsworth@thomsonreuters.com; 58 212 655 2660; Reuters Messaging: brian.ellsworth.thomsonreuters.com@reuters.net, @ReutersVzla))

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