Debt Relief by Private Creditors: Lessons from the Brady Plan

Debt Relief for Green and Inclusive Recovery Project

Debt Relief by Private Creditors: Lessons from the Brady Plan
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This paper reviews the main features of and experiences with the Brady Plan, which in 1989 laid the foundation for the restructuring of the sovereign debt of mainly Latin American countries. It argues that the combination of credit enhancement for restructured debt, moral suasion, and tax as well as regulatory relief to encourage private creditors to participate in debt restructurings may provide a template for addressing today's sovereign debt problems.
 
 
Tags: Latin America, Brady bonds, development, International Monetary Fund, debt problems, Sovereign debt restructuring, debt crisis, Sustainable Development Goals, infrastructure, economy, COVID-19
Product details
Date of Publication
Oktober 2021
Publisher
Heinrich-Böll-Stiftung e.V., Center for Sustainable Finance, Global Development Policy Center
Number of Pages
21
Licence
Language of publication
english
Table of contents

Contents
Abbreviations
Abstract
1 Introduction

2 A brief history of the context in which the Brady Plan evolved
3 The Brady Plan
3.1 Central features of the Brady Plan
3.2 The Mexican Brady deal 1
3.3 Supporting measures: Moral suasion and tax relief 1
4 Conclusions: Main lessons and implications for private creditor debt
relief today for green and inclusive growth

References
Author's Bios

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