The LDC external debt and the euromarkets: The impressive record and the uncertain future

This paper deals in detail with the volume and nature of LDC borrowing in the eurocurrency markets over the past 10 years. The factors affecting borrowing and lending on the euromarket are discussed, followed by an evaluation of the terms and conditions attached to euromarket loans. These borrowing activities, which have grown considerably recently, are analysed with a view towards clarifying a number of major issues related to the general problem of the increasing LDC external indebtedness and to the future of financial relations between the LDCs and the rest of the world economy.