He has stated that the terms of Ecuador's bond restructuring following the 1999 default were too favourable to bondholders and has hinted that social spending will take priority over debt servicing.
To make absolutely sure, I intend to introduce legislation that would require the Treasury to make interest payments on our debt its first priority in the event that the debt ceiling is not raised.
In the IMF's new view, giving private holders of government debtpriority in bailouts may be a poor use for taxpayer funds both in the countries receiving the aid and in those providing it.