The Latin American debt crisis began in 1982 when the Mexican finance minister stated that Mexico could no longer service its debts. Suddenly, banks stopped lending to Latin America, and a serious credit crunch ensued. By October 1983, 27 countries owed $239 billion. The LDC Debt Crisis, http://www.fdic.gov/bank/historical/history/191_210.pdf.
Ethan Kapstein. 1994. Governing the Global Economy: Chapter 4. Cambridge: Harvard University Press. Soon after the crisis began, the IMF bailed out Latin American countries in return for acceptance of an "adjustment program, and later, in 1985,tied bailout loans to structural adjustment, deregulation, and export promotion.
Jeffrey Sachs, ed. Developing Country Debt and Economic Performance, Volume 1: The International Financial System, NBER Project Report, Chapter 1. The growth of the Eurodollar market and OPEC price shocks led to unrestrained bank lending to developing countries during 1979-81. The markets were booming, so that credit was gladly extended.
Barry Eichengreen and Andrew Rose. 1998. Staying Afloat When the Wind Shifts: External Factors and Emerging-Market Banking Crises. Factors and Emerging-Market Banking Crises. Barry Eichengreen and Andrew K. Rose. NBER Working Paper No. 6370.
