1982 to 1983, the global debt crisis broke out.
Nearly 40 developing countries have asked for debt rescheduling.
The number of countries in crisis exceeds the sum of 1972- 198 1 year.
Characteristics of international debt crisis
The scale of debt is huge
According to IMF statistics, from 1973 to 1982, the total debt of non-oil-producing developing countries increased from 103 1 100 million dollars to 842 billion dollars.
The debt ratio increased from 1 15.4% to 120%, and the debt service ratio increased from 15.9% to 19%.
The crisis involves many countries and has a rare history.
The balance of payments deteriorated and the country's foreign exchange reserves plummeted.
Decline in exports of developing countries
The current account surplus has changed from $22.6 billion in 1980 to $56.3 billion in198/kloc-0, and the deficit has increased to $99.6 billion in 1982.
Debt is highly concentrated in regions and countries.
Most of the debt is concentrated in Latin America and Africa.
From 65438 to 0982, the total foreign debt of Latin American countries reached $331300 million, accounting for about 39% of the total debt of developing countries.
Africa's total foreign debt is $6543.8+$022.6 billion, accounting for 654.38+05% of the total debt of developing countries.
Debt structure is unfavorable to debtors.
According to the statistics of IMF World Economic Outlook 1983 and 1984, the long-term loans of debtor countries account for more than 80%, mainly international commercial loans, which are prone to debt repayment peaks.
Causes of the international debt crisis
Since the early 1970s, the scale of loans has become larger and larger, the accumulated amount is very large, and the debt structure has also changed.
Improper domestic policies, low productivity of borrowed funds and poor export competitiveness of products in debtor countries.
Encountered abnormal external conditions, namely a serious economic crisis and high interest rates.
Measures and programs to solve the international debt crisis
Debt restructuring
Buy back debts. Debt repurchase allows some countries to buy back debts with cash at a certain discount.
Debt swap.
Debt to equity swap
Debt for export.
Debt for nature.
Debt exchange. Restructuring debt in this way involves exchanging existing debt instruments or new debt instruments denominated in local currency or foreign currency. The terms of the old and new creditor's rights are completely different.
Currency exchange. This means that banks are allowed to revalue existing loans in their local currencies or European currency units.
Loans and refinancing (lending and lending).
Loan conversion and sales (loan swap and sales). The discount rate is between 10% and 90%.
Creditor Governments' Solutions to Debt Crisis
Baker plan. 1At the joint annual meeting of the International Monetary Fund and the World Bank held in Korea in June 1985, former US Treasury Secretary Baker formally put forward the proposal.
Project Mitterrand. This plan was put forward by French President Mitterrand at the G-7 Summit held in Toronto in June 1988 and at the United Nations General Assembly in September of the same year.
Japan's Ministry of Finance Plan. This is a proposal put forward by Gong Ze, the Japanese government minister in the summer of 1988.
Brady plan. This is the debt reduction plan put forward by former US Treasury Secretary N.F. Brady at the international economic seminar held in Washington in March 1989.