Experience suggests that schemes for dealing with sovereign, less developed country debt to the commercial banks have a limited life span. This article looks at a number of modifications to the Brady proposals that might render them appropriate for dealing with the next stage. It is suggested (1) that a five-year target for getting rid of the debt overhang should be accepted for reforming LDC economies; (2) that debt servicing costs should be limited to a realistic proportion of the debtor's foreign exchange earnings; and (3) that competitive sovereign debt tendering (CSDT) provides the most efficient method of extinguishing the debt overhang. © 1990.
Faber, M. (1990). The next plan after Brady? World Development, 18(12), 1703–1710. https://doi.org/10.1016/0305-750X(90)90065-6