Managing the Debt Legacy: Approaches to Resolution
By the end of 1987 the total external indebtedness of developing countries exceeded $1 trillion, or half of their combined GNPs. Associated debt service payments amounted to roughly one-fifth of annual earnings from the export of goods and services. After allowing for new lending, LDCs were making net transfers to private and official creditors of between $9 and $10 billion annually after 1984 (World Bank, 1988d).
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