Tequila Crisis

Full Name
Tequila Crisis in Mexican Debt
Event Type
Primary Date

In 1994, Mexico was unable to rollover its short-term debt due to declining oil prices. This led to the “Tequila Crisis,” a sharp devaluation of the Mexican peso, and a backdoor bailout of U.S. banks by the U.S. Treasury.

December 1994

Caused by Mexico’s inability to rollover short-term unsecured debts.

Was ugly for investors

The bond market gave a six-month early warning