Brady Plan

E400621

The Brady Plan was a late-1980s international debt-restructuring initiative that converted developing countries’ bank loans into tradable bonds to resolve the Latin American debt crisis.

All labels observed (1)

Label Occurrences
Brady Plan canonical 7

How this entity was disambiguated

Statements (64)

Predicate Object
instanceOf international financial initiative ⓘ
sovereign debt restructuring program ⓘ
addressesProblem 1980s developing-country debt overhang ⓘ
Latin American debt crisis ⓘ
announcedInYear 1989 ⓘ
appliesTo Latin American countries ⓘ
developing countries ⓘ
sovereign external bank debt ⓘ
coordinatedWith Paris Club debt treatments ⓘ
countryOfOrigin United States ⓘ
developedInPeriod late 1980s ⓘ
field international finance ⓘ
sovereign debt management ⓘ
firstMajorImplementationCountry Mexico ⓘ
firstMajorImplementationYear 1990 ⓘ
historicalContext collapse of voluntary bank lending to Latin America ⓘ
global rise in interest rates in early 1980s ⓘ
post-1982 Mexican debt crisis ⓘ
implementedInCountry Argentina ⓘ
Brazil ⓘ
Bulgaria ⓘ
Costa Rica ⓘ
Ecuador ⓘ
Jordan ⓘ
Mexico ⓘ
Morocco ⓘ
Nigeria ⓘ
Peru ⓘ
Philippines ⓘ
Poland ⓘ
Uruguay ⓘ
Venezuela ⓘ
implementedThrough exchange of syndicated bank loans for bonds ⓘ
voluntary participation by commercial banks ⓘ
influencedLater subsequent sovereign debt restructuring frameworks ⓘ
introducedInstrument Brady bonds ⓘ
keyMechanism conversion of bank loans into tradable bonds ⓘ
debt and debt-service reduction ⓘ
menu of restructuring options for creditor banks ⓘ
use of collateralized bonds ⓘ
namedAfter Nicholas F. Brady ⓘ
negotiatedBetween debtor governments and commercial bank creditor committees ⓘ
policyShiftFrom case-by-case rescheduling without principal reduction ⓘ
policyShiftTo market-based debt and debt-service reduction ⓘ
positionHeldByProposer United States Secretary of the Treasury ⓘ
primaryGoal reduce commercial bank debt burdens of developing countries ⓘ
resolve the Latin American debt crisis ⓘ
restore access to international capital markets for debtor countries ⓘ
proposedBy Nicholas F. Brady ⓘ
region Latin America ⓘ
requires IMF-supported adjustment programs ⓘ
World Bank structural adjustment lending ⓘ
macroeconomic reform programs in debtor countries ⓘ
resultedIn creation of a liquid secondary market for emerging market debt ⓘ
improved debt sustainability for participating countries ⓘ
increased role of bond financing in emerging markets ⓘ
reduction of commercial bank exposure to sovereign debt ⓘ
supportedBy International Monetary Fund ⓘ
United States Treasury ⓘ
World Bank ⓘ
major commercial banks ⓘ
usesCollateral U.S. Treasury zero-coupon bonds ⓘ
high-grade securities as collateral for principal ⓘ
rolling interest guarantees ⓘ

How these facts were elicited

Referenced by (7)

Full triples — surface form annotated when it differs from this entity's canonical label.

Nicholas F. Brady → notableWork → Brady Plan ⓘ
Nicholas F. Brady → knownFor → Brady Plan ⓘ
Baker Plan → precedes → Brady Plan ⓘ
Baker Plan → replacedBy → Brady Plan ⓘ
Baker Initiative → succeededBy → Brady Plan ⓘ
Latin American debt crisis → ledTo → Brady Plan ⓘ