The problem was exacerbated because, asMexico’s conditiondeteriorated, in order toraisemoney it hadissuedshort-termdebt instruments called tesobonos, which had to be repaid in dollars.
This reality, which was much in evidence in the recent case of the Mexican tesobonos, tends to create an incentive on the part of Western governments to intervene in the event of a liquidity crisis that threaten to harm scores of prominent firms and possibly thousands of investors.