Ecuador Financial Crisis Deepens

Ecuador says it is defaulting on a second bond payment, interest on $650 million in Global 15 bonds due through 2015.

The declaration comes three days after President Rafael Correa said the country would not make a similar $30.6 million payment on Global 12 bonds.

A presidential commission has recommended that Correa default on $3.9 billion of Ecuador's foreign debt, saying it is illegitimate.

Analysts say the defaults effectively cut Ecuador off from outside financing as it faces a major budget shortfall from falling oil prices.

Correa has long threatened a default to put more money into social spending. Oil accounts for 40 percent of Ecuador's national budget.