(Updates with quote from group, context on debt plan)
July 10 (Reuters) - Ecuador should improve the terms of a debt renegotiation plan that the cash-strapped government launched this week, a group of investors who hold some of the country’s bonds said on Friday.
The South American nation on Monday said the debt proposal had won the backing of investors holding around half of the country’s $17.4 billion in bonds, including major players such as AllianceBernstein and Ashmore Investment Management.
On Friday, a steering committee for 25 institutional investors, along with an ad hoc group holding Ecuador’s 2024 notes, said the terms “must be improved and strengthened to provide equitable treatment to all parties.”
BroadSpan Capital, an investment banking and restructuring advisory group that works with the steering committee, did not immediately respond to an email asking what percentage of outstanding Ecuadorean bonds are held by the group.
Under the proposal, Ecuador’s overall principal payments due would fall to $15.8 billion from $17.4 billion, while the average interest rate would fall to 5.3% from 9.2%.
President Lenin Moreno’s government in April reached a deal with bondholders to delay interest payments through August, as a plunge in oil prices and the coronavirus outbreak weighed on public finances. (Reporting by Brian Ellsworth in Caracas and Tom Arnold in London)