Image for Ley de Reorganización de la Deuda

Ley de Reorganización de la Deuda

The Ley de Reorganización de la Deuda (Debt Reorganization Law) is a legal framework that allows a country facing financial difficulties to restructure its debt with creditors. Instead of defaulting or paying immediately, the government negotiates new terms—such as extending payment deadlines, reducing amounts owed, or changing interest rates—to make repayment more manageable. This process aims to restore fiscal stability, rebuild investor confidence, and avoid economic crisis, ensuring that debt obligations are ultimately met in a sustainable way.