ABSTRACT
The debt crisis of Latin America can be divided into three stages. In the first stage, 1982-1984, Latin America had a trade deficit and small bargaining power. From 1984 Latin America started presenting large trade surpluses. This means a transference of real resources but also means an increased bargaining power. If Latin America suspends the payment of part of the interest, it will be able to buy all it needs. The third stage should start now. In this stage Latin America should use this new bargaining power more effectively in order to maintain reasonable rates of economic growth.
KEYWORDS:
External debt; debt crisis, stabilization