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External debt and crisis: The decline of the orthodox strategy
- Source: CEPAL Review, Volume 1985, Issue 27, Dec 1985, p. 35 - 52
- Spanish
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- 27 Dec 1985
Abstract
This article presents a general view of the reschedulings of Latin American debts with the private banking system during the period 1982-1985. The marked worsening of the conditions of indebtedness experienced by the debtors in the first round of negotiations in 1982-1983 has gradually given way to more favourable terms, above all in the most recent rescheduling (1984-1985). The creditors use market concepts to explain this phenomenon: the better terms represent a reward for good behaviour and the consequent lessening of risk.
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