Hello, I just need help understanding the basics of the Baker Plan (1985) and Brady Plan (1989). Please just check that I understand. The differences between these plans was that the Baker Plan approached the Latin American Debt Crisis as a short term problem and solved it as such: the plan was based on the loans repayment times being extended and the countries in debt getting more loans (accumulating more debt) to pay off the other debt. On the other hand, the Brady Plan (1989) acknowledged that the Latin American countries, along with the other third world countries in debt, would never be able to pay off the debts. So this plan was focused on debt forgiveness and some government bonds that ensured safety? Both plans were similar in the sense that they both acknowledged that the third world countries would need to grow in order to pay off their debt AND fund their growth?

I guess my question is: in what ways, exactly, were the plans similar and different?