ABSTRACT
Events in the world economy have focused increasing attention on the existing procedures and mechanisms for dealing with international debt problems. This chapter discusses US-government debt policies and relates them to the realities of the current debt situation as it is perceived by creditor governments. A clearer understanding of the current debt situation of developing countries is obtained by distinguishing three broad groups of developing country debtors. Despite this increase, acute debt problems remain concentrated on a small number of individual countries which require individual, specific solutions. Up to 1965, multilateral debt renegotiations focused almost exclusively on commercial debt since it was a major factor in the debt servicing difficulties being encountered. Some creditors view aid-consortia as the most appropriate forums for dealing with servicing problems related to low-income developing countries with debt portfolios based primarily in concessional debt. Multilateral debt renegotiations are directed to the financial aspects of debtor country situations.
