New publication UPIER Working Paper Series - June 2018

UPIER Working Paper Series Volume 3: A Fatal Flaw: Domestic Banks and Mexico's International Negotiating Position in the 1982 Debt Crisis, by Sebastian Alvarez.

The recent European debt crises has renewed interest as to why debtor countries honor their foreign debts and subscribe to respectively burdensome rescheduling conditions.While the cost of defaulting in a domestic financial system has been recognized as a main motive for repayment, the factors that refrain sovereign states from debt repudiation are not fully understood. This article investigates the reasons behind the repayment decision and weak negotiating position of the Mexican government following the 1982 debt crisis. 

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