INTERNATIONAL DEBT PROBLEMS

In: Contemporary economic policy: a journal of Western Economic Association International, Band 5, Heft 1, S. 100-105

Abstract

A long‐term solution to the international debt problem is achieved when debtor countries can return to the marketplace without assistance or negotiation with foreign governments and international agencies. The prospects of major debtors' returning are very different and are most likely for Brazil. Various proposals are discussed, including proposals to exchange bank loans at market value for equity. Secretary Baker s proposal, which is opposed by the Shadow Financial Regulatory Committee, is also discussed.