ABSTRACT
Debt and debt service have an important bearing on the net transfer of resources to developing countries and, therefore, on the efficacy of donor programmes in the area of international financial co-operation. Detailed data on debt service and disbursements are available for a smaller sample of countries. The developments in 1974 and 1975 have serious implications for the external solvency of non-oil-exporting developing countries in 1976 and 1977. Inflexibility in the scheduling of debt-service payments has meant that the category of transaction had to be excluded when considering the means by which the increased deficits might be financed. Suppliers’ credits provided by financial institutions in developed countries and loans from private banks are the two major sources of private credits with medium-term maturities. The possibility that debt relief would alter the distribution of concessional financial flows exists only when relief yields additional funds to one or more debtor countries.
