Latin American debt crisis in the context of "Early 1980s recession"

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⭐ Core Definition: Latin American debt crisis

The Latin American debt crisis (Spanish: Crisis de la deuda latinoamericana; Portuguese: Crise da dívida latino-americana) was a financial crisis that originated in the early 1980s (and for some countries starting in the 1970s), often known as La Década Perdida (The Lost Decade), when Latin American countries reached a point where their foreign debt exceeded their earning power, and they could not repay it. The IMF's response to the crisis has been criticized for prolonging unsustainable borrowing and transferring private banking losses onto taxpayers, which deepened the region’s debt overhang and delayed necessary market corrections.

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👉 Latin American debt crisis in the context of Early 1980s recession

The early 1980s recession was a severe economic recession that affected much of the world between approximately the start of 1980 and 1982. Long-term effects of the early 1980s recession contributed to the Latin American debt crisis, long-lasting slowdowns in the Caribbean and Sub-Saharan African countries, the US savings and loan crisis, and a general adoption of neoliberal economic policies throughout the 1990s. It is widely considered to have been the most severe recession since World War II until the 2008 financial crisis.

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Latin American debt crisis in the context of Debt relief

Debt relief or debt cancellation is the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations, or nations.

From antiquity through the 19th century, it refers to domestic debts, in particular agricultural debts and freeing of debt slaves. In World War I the United States Treasury made large loans to the Allies that were postponed, reduced and finally paid off in 1953. In the late 20th century, it came to refer primarily to Third World debt, which started exploding with the Latin American debt crisis (Mexico 1983, etc.). In the early 21st century, it is of increased applicability to individuals in developed countries, due to credit bubbles and housing bubbles.

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LINKED FROM (PARENTS)
← Debt relief ← Early 1980s recession
LINKS TO (CHILDREN)
Spanish language → Portuguese language → Financial crisis → La Década Perdida → Latin America → External debt → International Monetary Fund →