Lured by low-interest funds, Latin American countries such as Argentina, Brazil, Mexico and Peru borrowed a large amount of debt denominated in hard currency; however, as interest rates rose, capital flows reversed and developing countries' currencies faced devaluation pressure, Latin America's debt ratio rose to an unsustainable level.
In August 1982, Mexico's foreign exchange reserves had fallen below the danger level, and it was unable to repay the principal and interest of its maturing public foreign debt (US$26.83 billion). It was forced to announce the indefinite closure of all foreign exchange markets, suspend repayment of foreign debts, and convert all foreign exchange deposits in domestic financial institutions into domestic currency.
Following Mexico, Brazil, Venezuela, Argentina, Peru, and Chile also faced difficulties repaying their debts, and announced the suspension or postponement of foreign debt repayments. By the end of 1986, the total debt of developing countries in Latin America had soared to $1.6 trillion. This debt was highly concentrated, with a disproportionate proportion of short-term loans and floating-rate loans. Brazil, Argentina, and other Latin American countries bore the heaviest foreign debt burden.
Latin American countries subsequently worked tirelessly to address their debt problems, until the Brady Plan was introduced in the 1990s. Solving countries needed genuine debt relief, meaning a reduction in the nominal value of their debt. This plan, known as the Brady Plan, converted non-convertible and unpayable bank loans into convertible Brady bonds at a discount. It wasn't until 2003 that Latin America emerged from the shadow of its debt crisis.
Su Nuan did not plan to hold short-selling stocks for a long time. Any big move would attract the attention of capital giants. In order to avoid trouble and make a profit, he began to invest a lot of money in short-selling before Mexico announced that it could not repay its debts. Following Mexico, Brazil, Venezuela, Argentina, Peru and Chile also had difficulties in repaying their debts. When they announced the termination or postponement of foreign debt repayment, the money earned from short-selling at this time would definitely be considerable. At that time, he could take advantage of the chaos to quickly withdraw the funds and exit.
Su Nuan was alone in the study, planning for a long time and making a preliminary plan. After earning enough merit points, he would buy a batch of financial robots. These special robots have very high capabilities. Although Su Nuan in the later life is a finance student, he has little life experience and work experience. To do such a big thing, he needs the assistance of a group of high-end financial talents to ensure that everything will be safe.
When Su Nuan came out of the study, it was already late at night. She simply washed up and went to bed.
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