The Role of Bank Restructuring in Recovering from Crises: Mexico 1995-98.

The remarkable turnaround of the Mexican economy and the evolution of the banking problem is of interest in its own right. In addition, it is of interest to policy makers in other countries where debt-servicing difficulties and foreign exchange crisis have forced adjustment measures. In this paper, therefore, the authors examine the causes of the crisis, the crisis itself (insofar as it is relavant to understanding the response), and the evolution of the Mexican economy since the crisis.