One French government source called the scheme "a sort of private Brady bond
without a public guarantee", in a reference to a 1989 swap of Latin American debt for tradeable securities, some of them guaranteed, proposed by then US Treasury Secretary Nicholas Brady.
Buchheit, How Ecuador Beat the Brady Bond
Trap, INT'L FIN.
Could the Brady bond
market have developed without the debt crisis of the 1980s and without the financial technology to support it?
Since its Brady Bond
conversion a decade ago, an accumulated US$5 billion in private obligations have always been honored, and recent installments have featured a premium tied to surging hydrocarbon proceeds.
Peru is also inviting holders of Brady Bonds
to (i) submit offers to exchange Brady Bonds
for 2037 Bonds and/or (ii) submit offers to tender Brady Bonds
for an amount in cash equal to the Applicable Brady Bond
Price multiplied by the applicable factor listed in the table below.
In this environment, the government made a US$275 million payment on its Brady bond
obligations last week.
Aside from Brady Bonds
, this is the longest tenor achieved by a Sub Saharan Africa Sovereign, outside of South Africa.
Less than three years later, Brady Bonds
, a market-oriented tool of debt haircuts, were being celebrated as part of an emerging market growth strategy.
Constructed in 1979 as a state-owned hotel, it was purchased by the late millionaire businessman Ivan Zografski in 1994 for USD 41 M, a sum he did not completely pay since he used brady bonds
for the deal.
The National Economic Council (CENA) said March 6 it has approved for the Colon Free Zone, an additional loan in the amount of 84 million 22 thousand Balboas to add to its budget and partially fund the expansion work of Avenida Ahmed Waked, Via Randolph and access to the city of Colon in the amount of 75 million and the 9 million 22 thousand balboas will be used to pay off a loan balance product of the Brady Bonds
, said the Deputy Minister of Economy Gladys Cedeno.
Djankov was dismissed as Finance Minister because I went to former Prime Minister, Boyko Borisov, and told him I had information the Minister had taken a very large bribe in the deal with the Brady bonds
and the bond loan," said the RZS leader.
With respect to the Brady Bonds
Invitation, a total of US$1,468,188,000 aggregate original principal amount of Brady Bonds
were accepted for cash and in exchange for Peru's newly-issued 6.