The post-crisis legacy was finally shaken off only several years later with the restoration of fiscal sustainability, debt write-offs under the so-called Brady Plan
, and a variety of domestic structural reforms.
And, finally, they sought debt relief through the Brady Plan
Two of my Northern California neighbors, Peter Allen and Gary Evans - both veterans of the Brady Plan
- have explained how a similar plan could be implemented today.
Announced in March 1989, the Brady plan
contemplated the commercial banks' exchange of sovereign debt for bonds, either par or discount bonds, collateralized by a special issue of U.
He covers its history, globalization and global capital flows, the Brady Plan
, and recent financial crises and their causes.
Treasury Secretary Nicholas Brady almost two decades ago "to rekindle the hope of the people and leaders of debtor nations that their sacrifices will lead to greater prosperity in the present and the prospect of a future unclouded by the burden of debt" (Barbara Rudolph, "Enter the Brady Plan
," Time, March 20, 1989, p.
The restructuring negotiations concluded with the Brady Plan
The repos were created 11 years ago when the government incurred a large debt with BCV to finance a Brady plan
debt refinancing operation.
40) Second, the market made necessary(41) and facilitated(42) the Brady Plan
which brought with it an element of debt relief.
5): the Voluntary Foreign Credit Restraint program (VFCR) of 1965, authorization of International Banking Facilities (IBFs) in 1981; the International Lending Supervision Act (ILSA) of 1983; the Baker initiative of 1985; and the Brady plan
However, it is in the third feature of the Brady Plan
-- so-called after the then US Treasury Secretary -- that one begins to glean the double-dealing at the heart of this initiative.
The Brady Plan
replaced the failed Baker Plan, which in 1987 called for the banks to increase net lending flows to troubled LDC debtors by $20 billion over three years.