Journal Article

Debt reduction and market reentry under the Brady plan


Abstract: In March 1989, U.S. Treasury Secretary Brady proposed a new approach to resolving the developing country debt problem and restoring the creditworthiness of restructuring countries. The Brady Plan encouraged market-based reductions in debt and debt service for countries implementing economic reforms. This article analyzes the structure of the financial packages that followed this change in approach and considers their impact on countries and their creditors.

Keywords: Brady Plan; Debts, External; Developing countries;

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Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Quarterly Review

Publication Date: 1993

Volume: 18

Issue: Win

Pages: 38-62