International records / Foreign Relations of the United States

252. Paper Prepared in the Department of State

tries that have not rescheduled commercial debt have increasing difficulty in borrowing. In a sense, commercial bank creditors have abandoned any pretense of a case-by-case approach, and now rate all middle-income Latin debtors (and the Philippines, Nigeria and perhaps Indonesia) as not very creditworthy. ○ Per capita GDP declined by 6 percent in Sub-Saharan Africa over 1981–1987, and by 7 percent in Latin America. ○ International financial institutions are assuming an increasing share of the burden of lending. Commercial banks are clamoring for IFI guarantees to cover new bank lending. Arrear…