| HBS Case Collection
(Revised from original 2002 version)
Fresh Start? Peru's Legacy of Debt and Default (A)
Considers the situation facing Alberto Fujimori as he takes office in 1990. Pays particular attention to Peru's long history of international borrowing, default, and renegotiation. This history suggests that the costs imposed by foreigners on Peru when it failed to meet its contracts with foreign lenders have been relatively mild. Discusses the administration of Alan Garcia, who limited payments on Peru's international debt while also leading his country into an inflationary spiral. Also discusses some of the challenges posed by a bloody insurgency group named Sendero Luminoso.
Borrowing and Debt;