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External Debt

June 26, 1989 | PETER H. SMITH, Peter H. Smith is the Simon Bolivar Professor of Latin American Studies at UC San Diego. He has served as co-director of the Bilateral Commission on the Future of U.S.-Mexican Relations.
Crisis creates opportunity, according to an age-old saying, and necessity fosters invention. So it can be with Mexico's external debt of more than $100 billion. One constructive response might be a "debt-for-education" swap, analogous to the debt-for-equity swaps employed in recent years and favored once again by Treasury Secretary Nicholas Brady. The difference is that it would be used for the long-term benefit of both societies, not for the short-term gains of private investors.
January 26, 1987
The French Finance Ministry, which acts as the secretariat and spokesman for the Paris Club of western creditor nations, gave no details of the amount covered by the agreement, but Gabon's external debt currently totals around $1.2 billion. The rescheduled payments would be made over 10 years, including a four-year grace period.
The bold Latin American foreign policy initiative that President Bush embarked upon a year ago is paying big political and symbolic dividends, but it has yet to produce many tangible results, policy analysts say. Bush lauded the program this week at a Rose Garden ceremony marking its first anniversary, saying, "We've worked miracles in one year, and so let us shape a revolution in the next."
September 25, 1999 | From Bloomberg News
Ecuador has taken the stance that it doesn't matter if it defaults Tuesday on $96 million in deferred Brady bond interest, as payment wouldn't alleviate the country's swollen foreign debt--the largest in Latin America. Finance Minister Alfredo Arizaga said late Thursday that the government has completed a "menu of options" for restructuring $5.9 billion in Brady bonds and is prepared to sit down with bondholders to negotiate an easing of its external debt.
November 2, 1988 | From Reuters
Brazil and Citibank today announced completion of a historic $82-billion debt restructuring package, which will allow the nation to start drawing funds by the middle of the month. The package should enable Brazil to bring back-interest payments to commercial banks up to date and in turn boost U.S. commercial banks' fourth-quarter earnings. The loan agreement will give Brazil $5.2 billion in new loans. It also reschedules old loans and covers various short-term trade loans.
September 19, 1997 | Dow Jones
Wahlco Environmental Systems Inc. plans to offer shareholders the right to purchase common stock at a substantial discount. The offering applies to shareholders other than its majority shareholder, WES Acquisition Corp. To reduce the number of shares outstanding, the company also said Thursday that it plans a reverse stock split, subject to the approval of the New York Stock Exchange, after the rights offering. The company said shareholders will be issued eight rights for each share owned.
February 3, 1989 | From Reuters
Stabilizing exchange rates between major world currencies will permit leveling off of interest rates since inflationary pressures do not seem to be increasing, French Finance Minister Pierre Beregovoy said today. Finance ministers of the Group of Seven--the United States, West Germany, Japan, France, Britain, Italy and Canada--met Thursday and today to discuss the state of the world economy and the external debt of middle-income developing countries, such as those of Latin America.
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