The foreign debt crisis in the Latin American countries and a number of other less developed countries (LDCs) in the 1980s. Starting with Mexico’s default on foreign debt announced in August 1982, in total 16 countries in Latin America and 11 other LDCs had to have their debts restructured. A package of measures developed in agreement with the International Monetary Fund, the World Bank, and, significantly, the United States, included the reduction of principal and interest payments. This resulted in the absolution of about one-third of the total outstanding debt held by private lenders in exchange for economic and fiscal reforms that would allow the countries to service the remaining debt.