Ecuadorian Debt for Development
The director of a university-based foreign study program is considering participating in a program which allows the funds of the educational institution to be co-mingled with funds from other educational organizations and then swapped for outstanding debt issued by the country of Ecuador. It is hoped, as a result of the program to not only increase the purchasing power of the university funds, but also to aid in the reduction of the country's outstanding debt.
The case serves as an excellent starter case in a course in international finance, as it requires minimal number work which builds student confidence, but also allows a discussion of the historical debt crises which plagued the world economy throughout the 1980s. Students also generally get actively involved in the debate over how to expend funds to maximize purchasing power in Ecuador.