The Latin American debt crisis now is six years old and growing. When Mexican debts trade at 50 cents on the dollar, and those of Peru at less than a dime, the debt crisis is obviously unresolved. Far from improving their creditworthiness, the debtors are falling behind. Debt ratios are far above the 1982 level, and debtor countries’ economies are showing the strains of debt service in extremely high inflation, a deep drop in income, and an unsustainable cutback of investment. The debtors cannot afford to pay, nor can they afford to walk out on the system.