- Banks begin restoring trade-credit lines as Brazil's exports surge
HEADNOTE A volatile economy shows a bit of pace as exports grow and politics remains calm. International banks are gradually reopening Brazilian trade-finance facilities that were largely shuttered last year, following the Argentine financial crisis and during a nerve-racking run-up to Brazil's October 2002 presidential election. Fears of an impending ......
- Brazil washes off the Argentine contagion
HEADNOTE An unrelenting flow of bad economic news from neighboring Argentina has kept pressure on Brazil all year because of fears that investors would paint both countries with the same brush. By Ernest S. McCrary IMAGE PHOTOGRAPH 6 Throughout most of 2001 Brazil has been tainted by foul-smelling breezes blowing ......
- Recent innovations in debt
restructuring.
Debt and debt service reduction, together with sound policies, has strengthened the economic prospects of a number of countries The recent agreements with commercial banks on debt reduction packages for Argentina and Brazil and the implementation by Paris Club creditors of a menu of enhanced concessions in reschedulings for low-income ......
- Attracting foreign investors to Latin
America.
Ever since Mexico set off the "debt bomb" in 1982 and Argentina, Brazil, and Venezuela followed Mexico's lead by arbitrarily discontinuing payments on their enormous foreign debt, bankers and creditors have had a bitter taste in their mouths for Latin American credits. A decade later, the countries have instituted reforms, ......
- Argentina's liquidity trap
IMAGE PHOTOGRAPH 1 Students of economic history note that countries like Argentina have cycles of financial feast and famine that have been occurring with almost predictable regularity for more than a century. Michael Pettis, former head of liability management at Bear Stearns, writes in his recent book The Volatility Machine ......
- Lessons from Argentina and Brazil
What have we learned from the sovereign debt crises in Argentina and Brazil, and what can the United States and the International Monetary Fund do, if anything, to repair the damage, and to avoid similar problems elsewhere? Policy Lessons I would emphasize five policy lessons: * First, in emerging market ......
- FINANCE AND DEVELOPMENT: INSTITUTIONAL AND POLICY ALTERNATIVES TO FINANCIAL LIBERALIZATION THEORY
INTRODUCTION On August 7, 2002, Brazil received a $30 billion dollar package that was the largest loan granted in International Monetary Fund (IMF) history and brought total IMF lending to the country to $63 billion since 1998. The bailout was simply the latest chapter in a recent saga of unprecedented ......