Dr. Jayanthi Sankaran
Well-Known Member
Hi David,
I don't know where to post this - so thought I would post it here. I am not very clear on the 'Debt Rescheduling' of Mexican/Brazilian/Argentinian debt in the early 80's.
According to Hull "In the early 1980's, many LDC's were unable to service their loans. One option for them was 'Debt Repudiation', but a more attractive alternative was 'Debt Rescheduling. In effect, this leads to the interest on the loans being capitalized and bank funding requirements for the loans to increase"
I am not sure I understand it (the bold) perfectly. Would appreciate your input on this!
Thanks
Jayanthi
I don't know where to post this - so thought I would post it here. I am not very clear on the 'Debt Rescheduling' of Mexican/Brazilian/Argentinian debt in the early 80's.
According to Hull "In the early 1980's, many LDC's were unable to service their loans. One option for them was 'Debt Repudiation', but a more attractive alternative was 'Debt Rescheduling. In effect, this leads to the interest on the loans being capitalized and bank funding requirements for the loans to increase"
I am not sure I understand it (the bold) perfectly. Would appreciate your input on this!
Thanks
Jayanthi