QUITO, Ecuador - Ecuador has withdrawn from the World Bank body that arbitrates between countries and private companies, the government said on Thursday, becoming the second South American country to do so in two years.

Leftist Ecuadorean President Rafael Correa issued a decree "condemning and therefore terminating the Convention on the Settlement of Investment Disputes between States and Nationals of Other States."

Ecuador joined the World Bank's International Center for Investment Disputes, ICSID, in 1986, allowing foreign investors to file for arbitration at the institution if they disagreed with the country's policies.

Bolivia pulled out from the ICSID in late 2007 after the government officially accused it of favoring multinational companies in its rulings.

Correa, who is striving to exercise greater control over the economy, has lashed out at the ICSID in the past for considering demands from oil companies operating in Ecuador, including Spain's Repsol-YPF and France's Perenco.

He has even threatened companies with expulsion from the OPEC nation if they file for arbitration at the ICSID. -Reuters