Paper presented at the America Economia seminar on “Latin America: Raising Capital on the International Voluntary Markets,” held in Chile on June 18-19. The presentation drew on the work done by Fund staff for the recent survey of international capital markets (IMF (1991), International Capital Markets—Developments and Prospects. May) and on the author’s study of Mexico’s return to voluntary credit facilities (El-Erian, Mohamed A. (1991), “Mexico’s External Debt and the Return to Voluntary Capital Market Financing,” forthcoming). The presentation also benefitted from comments by Jack Boorman, Eduard Brau, Augusto de la Torre, Thomas Leddy, Alessandro Leipold, Don Mathieson, and Max Watson. The author is solely responsible for remaining errors.
This includes the rescheduling, under multi-year restructuring agreements, of obligations that would have fallen due beyond this period.
Also included is the September 1990 Chilean loan of US$20 million, reported to be the first fully voluntary, unsecured general bank loan to a Latin American country since 1982.
Registered dealers-brokers are exempt provided they own and manage a total of US$10 million in securities.
An example of increased flexibility is provided by the Canadian system where the Superintendent of Financial Institutions may, at his/her discretion, remove a country from the provisioning list 2 years (rather than the standard 5 years) after the most recent rescheduling if the country has shown ability to raise funds of over one year maturity on international capital markets.