Mexico Discussing Debt: Mexican officials will meet...

Mexico Discussing Debt: Mexican officials will meet with commercial bank creditors to discuss a bank proposal to cut its existing debt by about 20%, bankers close to the negotiations said. Mexico, with more than $100 billion in foreign debt, is the Third World’s second-largest debtor; Brazil is first. The banks’ debt-reduction proposal “certainly (falls) short of what Mexico thinks is adequate,” one banker said. Mexico had originally requested a 55% reduction in some of its existing debt, bringing the value of the debt closer to its secondary market value--about 40 cents on the dollar.