ABSTRACT
The eurocurrency markets have been the medium through which billions of dollars have been transferred from the vast pool of international savings to the LDCs, and in spite of the severe shocks to which the banking system has been subject in the past decade, the soundness of the markets has remained relatively unaffected. In addition to general purpose country lending, the major banks are likely to become more involved in project finance, trade finance, and co-financings. The demand for external finance seems certain to continue, given the pessimistic balance of payments forecasts for the medium term. In the international monetary fund (IMF), the process of facilitating easier access to its resources needs to be accelerated with special emphasis being placed on reducing the required speed of adjustment. A stronger, more dynamic IMF is essential if the institution is to play its part in the transfer of resources to the LDCs.
