Brady Bonds
![Stakeholders involved in Brady Bond debt restructuring and transactions. Dollar values on outstanding loans and bonds are illustrative; bonds were rarely issued for less than $125 million USD, and lenders frequently accepted either 30–50% losses on face value or reduced interest rates fixed at below-market values.[1] According to EMTA, a financial industry trade association, most lenders that accepted Brady Bonds for outstanding loans were either smaller US commercial banks or non-US financial institutions rather than](/Images/godic/202501/01/BradyBondFig4415.png")
Brady bonds are dollar-denominated bonds, issued mostly by Latin American countries in the late 1980s. The bonds were named after U.S. Treasury Secretary Nicholas Brady, who proposed a novel debt-reduction agreement for developing countries.