The Mexican Weekend marked the beginning of the
Latin American debt crisis. In August 1982,
Mexican Secretary of Finance Jesús Silva Herzog Flores flew to
Washington, D.C.
)
, image_skyline =
, image_caption = Clockwise from top left: the Washington Monument and Lincoln Memorial on the National Mall, United States Capitol, Logan Circle, Jefferson Memorial, White House, Adams Morgan, ...
, to declare
Mexico
Mexico (Spanish: México), officially the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatema ...
's
foreign debt unmanageable, and announce that his country was in danger of
defaulting.
This crisis had long lasting impact over the entire Latin American countries which is also known as "
Latin American debt crisis". The
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...
and other neighboring developed countries such as,
Canada
Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tot ...
came up with the assistance plane for Mexico with the co-ordination of financial institutions like the
International Monetary Fund
The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster glo ...
,
World Bank
The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Inte ...
etc. During this period major economic reforms were undertaken, with
liberalisation and privatisation replacing the earlier model of state led growth.
As a fallout of neo-liberal economic policies, foreign investors started investing heavily and over $90 billion flowed into the country during 1990-93. But within a short span of time this plan failed totally and Mexico failed one more time to get itself out of this crisis.
[Kavaljit Sing(1999) "The Globalisation Of Finance:A Citizen's Guide"; Zed Books ltd, London & New York, ]
See also
*
Latin American debt crisis
*
Brady Bonds
Brady bonds are dollar-denominated bonds, issued mostly by Latin American countries in the late 1980s. The bonds were named after U.S. Treasury Secretary Nicholas Brady, who proposed a novel debt-reduction agreement for developing countries.
...
References
History of government debt
Financial crises
Economic history of Mexico
1982 in Mexico
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