Term:
Brady bonds
Definition:
Brady bonds comprise commercial bank debt restructured under the Brady Plan. The Brady Plan was introduced in early 1989 and offers a comprehensive debt restructuring package for commercial bank debt. Under the plan commercial lenders/creditors can chose from a menu of instruments including buybacks, discount exchanges for debt stock reduction, and par exchanges at reduced interest rates for debt service reduction
Domain:
Finance
Source:
Joint BIS-IMF-OECD-World Bank statistics on external debt, metadata