The purpose of this study was to analyze, using a medium term scenario of three years, the impact 9f the Baker Plan on the economies of fifteen debt laden countries. A central argument of this scenario was to assess whether growth and creditworthiness would be restored in these countries. A model using projections of debt service, imports, exports and capital requirements was developed to test these variables. Baker's package of $29 billion over three years (1985-1988) was contrasted with the model projections. The findings showed that, in the short-term, Baker's proposal will fall short of restoring growth and creditworthiness. However, the supply side policies suggested by Baker Initiative are the right way to go if the indebted countries are to resume growth and creditworthiness in the long run.