Brady bonds

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Brady bonds

Bonds issued by emerging countries under a debt reduction plan.

Brady Bond

A bond issued by the International Bank for Reconstruction and Development to Latin American countries starting in 1989 and continuing into the 1990s. It effectively refinanced the bonds issued by Latin American countries after many defaulted on their national debt in the 1980s. Many bonds issued in the region prior to this were illiquid; Brady bonds were tradable and, for that reason, were more attractive to investors. Because many of them were guaranteed by U.S. Treasury bonds, they also carried less risk. In 1999, Ecuador defaulted on its Brady bonds. However, in 2003, Mexico retired its Brady bond debt completely.

Brady bonds

Dollar-denominated bonds of developing countries backed by zero-coupon U.S. Treasury securities. Although no longer in use, Brady bonds were issued in exchange for defaulted commercial bank loans.

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Aside from Brady Bonds, this is the longest tenor achieved by a Sub Saharan Africa Sovereign, outside of South Africa.

Standard Chartered is joint lead arranger for Ghana's sovereign bond

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.

The smartest guys in the room

In 2007, the $3.35-billion Brady bonds used to service Marcos' loans were retired.

Stop paying debts we don't owe

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.

$117 Million for road works

"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.

Bulgarian Conservative: Djankov Was Sacked for Corruption

In the Latin American debt crisis of the 1980s, our idiot-bankers had to be bailed out with Brady bonds.

Casino capitalism

The debt that Bulgaria has to refinance next year is the result of the Brady bonds swap carried out by the Simeon Saxe-Coburg cabinet in 2002/03.

Budget time: now that the election campaign is over, Bulgaria's Government and Parliament can turn their attention to outstanding business - starting with the 2012 Budget bill

Greek newspaper To Vima published more details of what it said was Weber's plan, resembling the so-called Brady bonds which rescued Latin America from bankruptcy in the 1980s.

Support grows for lengthening Greek debt payback

Sovereign debt was eventually restructured through "Brady bonds." The trick was to offer banks the opportunity to swap their claims on (insolvent) Latin American countries into long-maturity, low-coupon bonds that were collateralized with US Treasuries.

Introducing Brady Bonds might help alleviate the eurozone crisis

(25) In 1999, a Brussels appellate court agreed to attach interest payments on Peru's Brady bonds. (26) The Peruvian government paid Elliott $63.5 million.

Lawsuits and empire: on the enforcement of sovereign debt in Latin America

Trading in $2.4bn of CE[sup.3]te d'Ivoire debt in US dollars under New York law (2.5%, redeemable in 2032) began in mid-April, after the country exchanged it for Brady bonds it had defaulted on nearly a decade ago.