Abstract
International credits secured by LDC governments fulfil a number of important purposes. In some cases, LDC credits permit the borrowing country to acquire high-yielding assets. In other cases, there may be an important build-up of international liquidity. In yet others, LDC borrowing is needed to carry the borrower over an extremely difficult business cycle or domestic inflationary episode. An LDC government may borrow
-
(1)
to permit the country to survive a balance-of-payments crisis
-
(2)
to make service payments on existing international debt
-
(3)
to rebuild external reserves
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(4)
to finance a current-account deficit
-
(5)
to purchase high-yielding assets, or
-
(6)
to assist in financing economic development
— to cite just some of the reasons.
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Chapter 3
David O. Beim, ‘Rescuing the LDCs’, Foreign Affairs, July 1977, pp. 719–20.
Henry J. Bitterman, The Refunding of International Debt (Durham, NC: Duke University Press, 1973) p. 18.
John W. Sewell, The United States and World Development, Agenda 1977 (New York: Praeger, for the DAC, 1977) p. 102. In this volume the DAC recommends concessionary aid for the low-income LDCs by the United States and other OECD, as well as OPEC, countries.
J. W. Saxe, ‘Nature and Size of Developing Countries’ Debt’, Financing and Risk in Developing Countries, Proceedings of a Symposium on Developing Countries Debt Sponsored by the Export-Import Bank of the United States (Aug 1977) p. 39.
N. P. Sargen, ‘Commercial Bank Lending to Developing Countries’, Economic Review (Federal Reserve Bank of San Francisco), Spring 1976, p. 29.
W. H. Bruce Brittain, ‘Developing Countries’ External Debt and the Private Banks’, Quarterly Review (Banca Nazionale del Lavoro), Dec 1977, pp. 378–9.
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© 1979 Anthony Angelini,Maximo Eng and Francis A. Lees
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Angelini, A., Eng, M., Lees, F.A. (1979). Lending to LDC Governments. In: International Lending, Risk and the Euromarkets. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-03807-7_3
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DOI: https://doi.org/10.1007/978-1-349-03807-7_3
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