Case 104 - The 1982 Mexican Debt Negotiations
Leeds, Roger S. and Gale Thompson
In 1982 Mexico was on the brink of bankruptcy, an event that threatened the entire international financial system. Mexico needed U.S. financial assistance to avoid defaulting on its $80 billion external debt. This case study traces the origins of the crisis from both countries’ perspectives. It also presents the solution, which unfolded through inter- and intragovernmental negotiations over a 48-hour period, and explains how a large number of institutional actors can respond to unexpected international financial crises.