Brady Bonds

Stakeholders involved in Brady Bond debt restructuring and transactions. Dollar values on outstanding loans and bonds are illustrative; bonds were rarely issued for less than US$125 million, and lenders frequently accepted either 30–50% losses on face value or reduced interest rates fixed at below-market values.[1] According to EMTA, a financial industry trade association, most lenders that accepted Brady bonds for outstanding loans were smaller US commercial banks or non-US financial institutions, rather than "major money center banks."[2]

Brady bonds are dollar-denominated bonds, issued mostly by Latin American countries in the late 1980s. The bonds were named after U.S. Treasury Secretary Nicholas Brady, who proposed a novel debt-reduction agreement for developing countries.

  1. ^ "The Brady Plan". Emerging Markets Traders Association. Retrieved 2023-02-24.
  2. ^ "History and Development: Emerging Markets and Brady Plan". www.emta.org. Trade Association for the Emerging Markets. Archived from the original on 11 August 2011. Retrieved 16 August 2018.