IMF Panel Says Third-World Debt Strategy Is Failing
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WASHINGTON — The policy-making panel of the International Monetary Fund said today that a 1 1/2-year-old plan for new commercial bank loans for Latin American and other debtor nations does not seem to be working, and new creative financing schemes are needed.
The IMF’s Interim Committee, which forges policy for the international lending organization, cited a lack of progress under a Third World debt strategy authored by Treasury Secretary James A. Baker III, blaming banks for being “reluctant to provide funds.”
The plan, which Baker himself conceded has produced disappointing results, called for at least $20 billion in new bank loans for developing nations that undertook major economic reforms. An1869899877international lending organizations.
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