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Security & Strategic Review November 2008 (ISSN 1741-4202)

ECUADOR: Brazil recalls envoy as Correa reignites dispute

President Rafael Correa reignited his confrontation with Brazil by announcing that he would not repay the loan granted by the Brazilian development bank BNDES for the construction of the San Francisco hydroelectric plant, which he portrayed as a loan to the recently expelled Brazilian construction firm Odebrecht [SSR-08-10], not to Ecuador. President Lula da Silva has recalled his ambassador to Ecuador and ordered a comprehensive review of cooperation with that country. This time Correa says he will not be swayed, as recently happened when Brazil reacted to his threat to expel Petrobras.

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