Opinion Euro Zone Should Look to Brady Plan to Solve Its Crisis

After the Latin American debt crisis in the 1980s, US regulators lied about the health of American banks until they were in a position to take a voluntary haircut on their bad loans. The Brady Plan holds important lessons for euro-zone governments looking for a way out of the current debt crisis.
Von Jacob Funk Kirkegaard
The US Treasury Department building in Washington. Euro-zone governments could learn a lot about dealing with the debt crisis by looking at the US Brady Plan in the 1980s.

The US Treasury Department building in Washington. Euro-zone governments could learn a lot about dealing with the debt crisis by looking at the US Brady Plan in the 1980s.

Foto: CHIP SOMODEVILLA/ AFP