The Banking System and the Indebted Developing Countries: Retrospective and Prospects

Abstract

Six years after the debt problem emerged as a crisis of global proportions, I am not sure whether we should commiserate that the crisis is still with us, or rejoice that the financial system has avoided severe economic disruption. I believe that we have much to be satisfied with in the management of the debt crisis so far. Both the commercial banks and the international financial institutions have made substantial contributions to that end, but there is a great deal still to be done before we can claim a victory on the debt issue.