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...power plant. He lavished special attention on firms owned by friends and relatives, a practice known in the Philippines as crony capitalism. When the companies failed, the government rushed in with bailouts it could not afford. By 1983 the Philippines was so strapped it was forced to declare a moratorium on foreign-debt repayments. After a flurry of negotiations, the International Monetary Fund came to the rescue with standby credits, conditional on Marcos' adherence to an austerity plan that included severe budget cuts...

Author: /time Magazine | Title: The Philippines Now the Hard Part | 3/10/1986 | See Source »

...crackdown was sparked by a petition drive mounted by opposition leaders. Its aim: revision of the 1980 South Korean constitution to allow direct election of the President, instead of the current electoral-college system, which allegedly favors Chun's ruling party. Chun, for his part, wants a moratorium on political reform until after the 1988 Olympics in Seoul. Scoffs Kim Young Sam: "To say that the nation should absorb all the government madness until 1988 is to say that Korea could go to pieces after the Olympics...

Author: /time Magazine | Title: South Korea: Nineteenth Nervous Breakdown | 3/3/1986 | See Source »

...debt has piled up to $214 billion, more than the combined foreign debt of Mexico, Argentina, and Brazil, she says, arguing that "It is sad that we can let these countries off the hook" while the government sends foreclosure notices to American farms. Kelley, who proposes a three-year moratorium on farm foreclosures, says that next month the government will send out 65,000 foreclosure notices...

Author: NO WRITER ATTRIBUTED | Title: Kathleen Kelley: Farming, Skiing, and Politicking | 2/20/1986 | See Source »

...country's citizens have grown increasingly restive about the austerity measures that were imposed by the government of President Miguel de la Madrid to meet debt payments. About 35,000 people joined a protest march last week in Mexico City. Said one banner: MORATORIUM ON THE DEBT. THE PEOPLE HAVE HAD ENOUGH. By comparison, Venezuela's President Jamie Lusinchi should experience less trauma because his country's debt, at $35 billion, is smaller...

Author: /time Magazine | Title: the Price War Is Here | 2/17/1986 | See Source »

...reluctant Scrooge is Arnold Thomas, 32, who heads the local office of the Farmers Home Administration. He has the unpleasant duty, as the agent of the Federal Government's lender of last resort, to foreclose on farmers who cannot keep up their debt payments. After a two-year moratorium on foreclosures, Thomas is now sending out letters politely advising farmers on how to avoid default through loan reschedulings, reamortization, even voluntary liquidation. "It bothers me to foreclose," says Thomas. "If it didn't, you wouldn't be human. I try to leave my job at the office. Otherwise...

Author: /time Magazine | Title: Sac City Fights for Survival | 2/17/1986 | See Source »

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