(Bloomberg) — Goldman Sachs Group Inc. pulled out of a $1 billion deal to help Ecuador refinance debt, due to internal risk-management controls.
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The Wall Street bank exited the transaction — a debt-for-nature swap that was completed last month — after an internal compliance review identified a possible conflict of interest that the bank then flagged to the relevant parties, Ecuador’s finance ministry told Bloomberg in a written response to questions.
Goldman exited just days before the deal was completed, the ministry said, but “we appreciate that its legal and compliance processes identified an internal risk of interest and were communicated to the various participants in a timely manner.”