Palma, Pedro A. (1984) The Debt Problem: A Debtor’s Point of View. Hickman, B. G. (Ed.) International Monetary Stabilization and the Foreign Debt Problem. San Francisco: Project Link and The Federal Reserve Bank of San Francisco. Pp. 91-101.
After two years of restructuring negotiations between the debtor countries and the creditor banks, in 1984 it was clear the urgent need to find an alternative solution to the existing debt problem. By insisting on the traditional restructuring methods, the financial system would be condemned to a crisis of unpredictable severity and certain debtor countries might be forced to suspend payments in response to changes in the international economic situation. In the search for a solution to the debt problem, the main responsibility fold on those parties most at fault for creating and worsening the problem: the debtor countries and the creditor banks.