An Introduction to Analytical Issues in Debt
Author: Mr. Jacob A. Frenkel1, Mr. Michael P. Dooley2, and Mr. Peter Wickham
  • 1 0000000404811396https://isni.org/isni/0000000404811396International Monetary Fund
  • | 2 0000000404811396https://isni.org/isni/0000000404811396International Monetary Fund
Language:
English
Keywords:
BOOK; debt; debtor country; market; debt buy-backs; debt situation; debt facility; debt transaction; exchange operation; Debt strategy

Abstract

IN THE AUTUMN OF 1982 Mexican banks in New York encountered increasing difficulties in meeting their obligations to repay maturing interbank loans. This announcement sent a strong pulse through the delicate web of international financial markets. A liquidity crisis for a debtor as important as Mexico placed the economic viability of other developing countries in doubt as well and threatened to disrupt the trust that a modern credit market operates on. While Federal Reserve officials took the threat very seriously, there were well-known and tested procedures to handle such contingencies. The Fed quickly stepped in to protect the system and provide time to find a more permanent solution.

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Cover Analytical Issues in Debt
Analytical Issues in Debt
Editor: Mr. Peter Wickham, Mr. Jacob A. Frenkel, and Mr. Michael P. Dooley
ISBN:
9781557750419
Publication Date:
15 Mar 1989
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781557750419.071
Pages:
427