The difference between the Brady Plan proposed by the Bush administration and the Baker Plan proposed by the Reagan administration is that the Baker Plan only provides new loans to promote the economic development and debt repayment of developing countries such as Latin America, while Brady plans to incorporate debt relief into the US policy for the first time. In fact, the United States recognizes the objective fact that debtor countries cannot fully repay their debts, and puts forward a new debt strategy with commercial banks reducing the original debts of developing countries such as Latin America and international financial institutions increasing support loans to debtor countries as the main content.