Efforts Made So Far by the World Bank and the Paris Club to Deal with the Problem of Debt

Multilateral debt is due to a number of creditors of whom the largest are the World Bank and the International Monetary Fund. The total of debt owed directly to the World Bank for loans issued by them at more or less commercial rates of interest, from funds which they have raised on the money markets is considerable. The World Bank has been in a position of irreconcilable aims for a long time. The World Bank was rightly regarded as a body having a special responsibility for the welfare of poorer countries. Successive Presidents emphasised the World Bank's role in the elimination of poverty. The World Bank has been excessively conscious of the possible effect of its actions in producing an unfavourable response from the money markets. The World Bank initiative is combined with that of the Paris Club of bilateral lenders, under the Naples terms, to produce a comprehensive debt remission package.