The cooperation between international organizations, private banks, and national governments as put forward in the Baker Plan has prevented major disruptions of the international financial system resulting from the debt crisis. Rescheduling agreements have been reached in large numbers....

The disappointing response to the Mexican debt-swap initiative has shown that financial innovations cannot be relied on solely to reduce the debt burden to levels that reestablish the creditworthiness of major debtors. The following article examines the conventional approach to solving the debt...

A number of highly indebted developing countries have experienced severe foreign exchange shortages for a couple of years. They could not simply roll over old debt any more by taking up new loans. Since export revenues could not be raised sufficiently, quite a few countries resorted to a...