The Mexican debt agreement is good for both Mexico and the banks.

"We hope to have the term sheet by March," he said, referring to an initial debt agreement.

Brazil's provisional debt agreement has been attacked by key members of the two main political parties.

Mexico paid about $15 million dollars in 1922 for the first annual deposit of the debt agreement.

The debt agreement comes at a time the country has showed promising economic performance.

But they still need to go through an expedited bankruptcy process to break the contract terms of their previous debt agreements.

The Government has maintained that it will not pay the arrears until an overall new debt agreement is reached.

Under the debt agreement, Citibank would have to offer new loans of around $400 billion to $500 million over several years, he said.

But the debt agreement's main drawbacks are of a more strategic nature.

In effect, then, chapter 11 says it is better to keep a firm running than to honour debt agreements.