Creditor banks and Brazilian debt
Abstract
This paper deals with the international bank’s adjustment process to the
external debt of the less developed countries. It starts with an overview of the American
banks’ financial situation during the eighties. It concludes that, after Brazil’s default in 1987,
banks are willing to strengthen their capital structure, but they still have risks to face.
JEL Classification: G21; H63
Keywords: Credit risk foreign debt debt crisis