The Seventies and Multinational Banks
The growth of Euro-currency markets and of their loans to developing countries
What were the main reasons that encouraged private banking credits to grow so rapidly that they became the most important single element in international capital movements in the seventies? An attempt will be made to describe the different factors that contributed to this change. As explained below, recycling of petrodollars since 1974 only accelerated a pre-existent trend. The entry of developing countries into the Euro-currency market will be examined, as well as the trends followed by this form of finance during the seventies. The criteria of 'creditworthiness' will also be examined.