With the out-of-court assignment of property pledged by firms as collateral, recovery times could shrink to a matter of months from the previous estimate of more than three years, already reduced by last summer’s reforms. The system-wide impact of the measures imposing the stipulation of explicit agreements will increase as they are included in new and renegotiated loan contracts with greater frequency.
Through the 1990s and into the early 2000s foreigners expected returns here to be so high that they willingly sent us larger and larger amounts of savings - in effect, financing a goodly part of our investment boom. The strong demand for dollar assets was evidenced by a rising exchange rate, which in turn fed the increase in the current account and trade deficits.