Brady Plan

The Brady Plan, proposed in the 1980s by former U.S. Treasury Secretary Nicholas Brady, aimed to address the international debt crisis faced by developing countries. It involved restructuring the debt of these countries through a combination of debt swaps, where creditors would exchange debt for equity in local companies, and new lending. This plan helped to alleviate the burden of unsustainable debt, allowing countries to invest in their economies without the crippling obligation of repaying large sums to foreign lenders. Overall, it sought to promote economic stability and growth in developing nations.