Restoration of Access to Voluntary Capital Market Financing: The Recent Latin American Experience

Abstract

After a prolonged and almost total reliance on debt restructurings and concerted money facilities, several Latin American countries have mobilized voluntary financing from international capital markets. Although the phenomenon is still limited in terms of volume and number of borrowers, it has attracted considerable attention. This paper reviews the nature, magnitude, and terms of the market re-entry process and analyzes the factors that have facilitated it. A discussion follows, based on this review, of the key elements affecting the short-term prospects for Latin American private and public sector voluntary debt and equity financing from international capital markets.