The ‘Lost Decade’: How the Struggle to Control Inflation in the US in the 1980s Triggered Latin America’s Biggest Debt Crisis in the Last Century

  • Angel Bermudez (@angelbermudez)
  • BBC News World

Jose Lopez Portillo.

image source, Courtesy of the INAH photo library


Mexico had to seek a moratorium on its debt payments during the final months of José López Portillo’s government.

Things looked bad for Mexico from the first days of that August 1982.

On the 4th British newspaper Guard He has already warned that the country could be forced to change the repayment schedule of its foreign debt, which at the time was the largest in the world.

The public debt was about 58 billion USD and the private debt was between 18 and 20 billion USD..

Just to meet obligations arising from short- and medium-term debt for the rest of the year, Mexico needed about US$15.6 billion.

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