The low-income developing countries with little prospect of repaying loans are in the greatest need of help as a result of damage from the global financial crisis. Total private capital flows last year fell to $707 billion from $1.2 trillion in 2007. With private capital flows expected to plummet, many countries will have difficulty meeting their external financing needs, estimated to total $1 trillion for this year, says the International Monetary Fund. It is important the debt-relief programs be continued and expanded, the World Bank says.
Credit Crunch Fallout Hits Weakest Nations Hardest Gordon Platt Global Finance; Jul/Aug 2009; 23, 7; Docstoc pg. 10 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
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