Mexico Debt Plan Rejected: Commercial banks have...

Mexico Debt Plan Rejected: Commercial banks have rejected Mexico’s request for a package of new loans and relief on its $100-billion debt, a senior U.S. official said. The impasse, though not surprising in the early stages of debt negotiations, underscores the hurdles facing Treasury Secretary Nicholas F. Brady’s recent initiative to slash Third World debt. Mexico, the developing world’s second largest debtor, seeks $4 billion this year through new loans or reduced payments on the $57 billion it owes in medium- and long-term loans. A Bush Administration official said heads of Mexico’s leading creditor banks found Mexican proposals “too aggressive.”