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FACTBOX-How Ecuador's Correa got tough on foreign interests

Published 02/14/2009, 01:48 PM

Feb 14 (Reuters) - Ecuadorean President Rafael Correa said on Saturday his leftist government could freeze some assets of Spanish oil company Repsol and France's Perenco to seek payments of pending debts.

Correa, who faces reelection on April 26, is widely popular among Ecuadoreans for his tough stance against foreign interests he says interfere in his OPEC nation's affairs.

Here are some of Correa's tough actions against foreign governments and investors since he took office in 2007:

* In 2007, Correa shocked investors by taking nearly all of the extra revenues oil companies generate above a set benchmark price for the each barrel they extract. Correa's windfall tax hike sparked a rash of international lawsuits as companies charged the measure violated their contracts.

* Correa expelled a U.S. embassy official in early February after accusing him of interfering in his country's affairs. His action has not yet frayed ties with Washington as the U.S. official had left before Correa ordered his expulsion.

* Correa in December refused to repay $3.2 billion in foreign debt over charges the bonds were linked to corrupt former officials and that their terms were unfair. He has often threatened to default on Ecuador's global bonds.

* Correa vowed to cut off his right arm before he would extend a lease due to expire this year on a coastal air base that U.S. troops use for anti-narcotics missions. He said he would allow U.S. soldiers to stay at the base only if Washington allowed Ecuadorean troops to be stationed in Miami.

* Correa broke ties with Colombia and sent troops to its border after Colombian commandos raided a leftist rebel camp inside Ecuador in March 2008. He has refused to mend ties with Colombia, saying U.S. ally President Alvaro Uribe has not done enough to protect the border and prevent Colombian rebels from trickling into Ecuador.

* Brazil briefly called back its ambassador in November after Ecuador filed a lawsuit to stop payments on a loan from a Brazilian bank on charges it was acquired illegally. Correa later said payments would continue until a court decides on the legitimacy of the debt, which he says is unfair to his poor nation.

Weeks earlier, Correa kicked out Brazilian building firm Odebrecht and sent troops to seize its projects in Ecuador over a contractual dispute.

* Shortly after taking office in 2007, Correa expelled the World Bank's envoy after demanding the official explain why he suspended a loan while Correa was economy minister. Correa said the official halted the loan after he eliminated an oil fund earmarked for foreign debt payments. (Reporting by Alonso Soto; Editing by John O'Callaghan)

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