Phillip Fletcher Following the 1980s debt crisis, the IMF and World Bank endorsed the Brady Plan, which called for debt reduction by way of risk-compensated forgiveness. Debtor countries' loans were restructured into a menu of publicly-traded US dollar-denominated Brady Bonds collateralised with US Treasury securities. The first Brady Bond, completed in 1990 for Mexico, became the archetype for the other Brady deals that followed over the next seven years.
December 06 2012