The Latin American Debt Crisis refers to a financial crisis that began in the early 1980s when several countries in Latin America faced overwhelming debt burdens. Many nations had borrowed heavily from foreign banks and governments during the 1970s, expecting economic growth. However, rising interest rates and falling commodity prices led to economic downturns, making it difficult for these countries to repay their loans. As a result, countries like Mexico, Argentina, and Brazil defaulted on their debts, prompting a regional and global economic crisis. The situation led to the implementation of austerity measures and structural adjustments, often dictated by international organizations like the International Monetary Fund (IMF), which aimed to stabilize economies and restore creditworthiness.