Ecuador's finance minister says the government has bought back 91% of its defaulted bonds via an international auction.

This move of the leftist govt. has rehabilitated coercions to take action against other "illegal" debt.

Ecuador's President Rafael Correa called the debt buyback a "resounding victory" and said that the debt buyback would initiate a new era in international markets.

The investors were amazed by this move of the govt. in which it refused to pay $3.2 billion in 2012 and 2030 global bonds last year, saying the debt was riddled with indiscretions when issued in 2000.

Speaking on the issue Correa said, "We will probably be criticized for the resounding success we had in resolving the global bonds' problem. We are now a dangerous example to other indebted countries."

Correa further said that even after the buyback 7.2 % of the 2030 bonds and 18.7 % of its 2012 bonds remained in the market.