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New Background Paper on Lessons from the Brady Plan

The paper by DRGR authors Stephany Griffith-Jones, Kevin Gallagher, and Ulrich Volz reviews the main features of and experiences with the Brady Plan, which in 1989 laid the foundation for the restructuring of the sovereign debt of mainly Latin American countries. It argues that the combination of credit enhancement for restructured debt, moral suasion, and tax as well as regulatory relief to encourage private creditors to participate in debt restructurings may provide a template for addressing today’s sovereign debt problems.

Read Background Paper #7 here.