Ecuador

Latin America's Ecuador missed an interest payment on 15 November 2008, and subsequently failed to make the $3.9 billion payment within the 30-day grace period, which ended on 15 December 2008. The country had an estimated outstanding debt of $10 billion, and its default constituted the largest of its kind since Argentina's default in 2002.

Having triggered a failure to pay credit event, the 14 January 2009 auction settled credit derivative trades referencing Ecuador's debt, at 31.375%. From dealer inside markets, the inside market midpoint was 32.375. Buy physical requests totaled just over $223.3 million, while sell physical requests were around $145.8. This left a net open interest of just under $77.5 million to buy. Only Barclays and Citi had limit orders partially filled, all at the final price.