Following a year in which repeated political turmoil sapped investor confidence in Mexico, putting pressure on the peso …. The resulting collapse of the peso left Mexico with $40 billion to $50 billion in external debt (much of it dollar …-indexed) coming due in the near term and almost no foreign exchange reserves. Faced with the prospect that Mexico would either default …

In December 1994, Mexico entered a financial crisis. The government abandoned its crawling peg exchange rate policy … the debentures, however, they had to maintain these cash proceeds at the Bank of Mexico. On March 31, 1995, six banks were … recapitalized, including Serfin, Inverlat, and Bital—the third-, fourth-, and fifth-largest banks in Mexico. The overall amount of …