In 1995, just as Mexico was crawling out of the peso crisis,
the ailing sovereign found its salvation in the international
debt market. In December 1994, the country had sunk into
financial crisis when the government devalued the peso, nearly
killing off the country's banking system. It took a $20 billion
line of credit from the US Treasury, backed by Mexico's oil
reserves, to pull the country back from the brink of collapse
in February 1995. Under the agreement, Mexico had until 2000 to
repay the loan, which it planned to do by issuing debt in the
international bond markets.
Mexico last tapped the international market in...
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