ABSTRACT
The first significant break in the steady growth of the Eurocurrency market since its inception occurred in 1982. During the 70s and until 1981 the expansion rate remained fairly constant at twenty or thirty percent per annum. This chapter shows that the total of world-wide Euromoney deals, inclusive of borrowing and lending in foreign currencies, can hardly be less than fifteen to twenty times the value of all foreign payments made on account of trade and non-bank investment. It considers the whole status of Eurobonds in the pattern of international debt. Morgan Guaranty gives totals of new Eurocurrency credits and bond issues year by year and country by country. The January 1984 Morgan Guaranty report reveals that, in 1983, for the first time since 1976, gross new borrowing in international bonds exceeded new medium-term Eurocurrency bank credits. Lending via the medium of marketable bonds is becoming as important as it was in the 1930s and earlier.
