Mexican Weekend
Encyclopedia
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.
, to declare Mexico
'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 U.S.A and other neighboring developed countries such as, Canada
came up with the assistance plane for Mexico with the co-ordination of financial institutions like- IMF, World Bank
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 exico failed one more time to get herself out of this crisis.
Latin American debt crisis
The Latin American debt crisis was a financial crisis that occurred in the early 1980s , often known as the "lost decade", when Latin American countries reached a point where their foreign debt exceeded their earning power and they were not able to repay it.-Origins:In the 1960s and 1970s many...
. In August 1982, Mexican Secretary of Finance
Secretariat of Finance and Public Credit
The Secretariat of Finance and Public Credit is Mexico's finance ministry. The Secretary of Finance and Public Credit is a member of the federal executive cabinet and is appointed by the President of the Republic.In Mexico the Secretary of Finance is the head of the Secretariat of Finance and...
Jesús Silva Herzog Flores flew to Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
, to declare Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
's foreign debt
Developing countries' debt
The debt of developing countries is external debt incurred by governments of developing countries, generally in quantities beyond the governments' political ability to repay...
unmanageable, and announce that his country was in danger of defaulting
Default (finance)
In finance, default occurs when a debtor has not met his or her legal obligations according to the debt contract, e.g. has not made a scheduled payment, or has violated a loan covenant of the debt contract. A default is the failure to pay back a loan. Default may occur if the debtor is either...
. This crisis had long lasting impact over the entire Latin American countries which is also known as "Latin American debt crisis
Latin American debt crisis
The Latin American debt crisis was a financial crisis that occurred in the early 1980s , often known as the "lost decade", when Latin American countries reached a point where their foreign debt exceeded their earning power and they were not able to repay it.-Origins:In the 1960s and 1970s many...
". The U.S.A and other neighboring developed countries such as, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
came up with the assistance plane for Mexico with the co-ordination of financial institutions like- IMF, World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
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 exico failed one more time to get herself out of this crisis.
- Latin American debt crisisLatin American debt crisisThe Latin American debt crisis was a financial crisis that occurred in the early 1980s , often known as the "lost decade", when Latin American countries reached a point where their foreign debt exceeded their earning power and they were not able to repay it.-Origins:In the 1960s and 1970s many...
- Brady BondsBrady BondsBrady bonds are dollar-denominated bonds, issued mostly by Latin American countries in the 1980s, named after U.S. Treasury Secretary Nicholas Brady.-History:...