Brazil recalls envoy to Ecuador over debt dispute

November 22nd, 2008 - 4:51 pm ICT by IANS  

Rio de Janeiro, Nov 22 (IANS) Brazil has recalled its envoy to Ecuador over a financial dispute and threatened to review its diplomatic relations with the Latin American neighbour, EFE reported Saturday.Foreign Minister Antonio Amorim said Friday ambassador Antonino Marques Porto had been recalled because of the Ecuadorian government’s decision to break a financing contract with Brazil’s Development Bank (BNDES) for the construction of a hydroelectric plant.

Ecuador’s decision is “not in harmony with the spirit of dialogue, friendship and cooperation between our two countries,” Amorim told delegates at the an international Conference on Biofuels in Sao Paulo.

“We called our ambassador back. Anyone who knows something about diplomacy knows what that means,” he said.

The San Francisco hydroelectric plant was built by the Brazilian company Odebrecht, which was expelled from Ecuador last September for alleged irregularities and bad project execution.

The plant was expected to produce 12 percent of Ecuador’s energy supply. It started operation in 2007 but had to be closed due to defects in June 2008.

Ecuador’s President Rafael Correa said Thursday that he “had taken legal measures” to suspend the payment of $460 million debt to Brazil.

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