Many of our largest financial institutions packaged the loans into marginally capitalized securitization structures that were rated highly by the credit rating agencies and thus generally viewed as suitable for purchase by a range of investors – including the most risk averse. As conditions in the housing market deteriorated, the threat of significant mortgage defaults emerged in 2007.
Trade boycotts, economic sanctions, disinvestment, the withdrawal of other capital and the declaration of a partial debt standstill from September 1985, forced the authorities to pursue an inward-oriented policy that had a severe impact on domestic economic performance. At the time of the standstill, the affected debt amounted to $ billion and the total debt amounted to $ billion.