§ 69. Mr. Campbell-Savoursasked the Secretary of State for Foreign and Commonwealth Affairs what effects the current problems of the banking system are expected to have on the development of underdeveloped economies.
§ Mr. OnslowThe economic problems of developing countries at present stem largely from the slowdown in world trade, low commodity prices and high real interest rates. A number of these countries face substantial debt repayments both to the private banks and to official creditors. The most affected are a small number of the more industrialised developing countries. In addition, some of the poorest developing countries also have debt service burdens which are not on the same scale as those of the major borrowers, but which place considerable strains on the economies of the countries concerned. Many have already embarked on the adjustment measures necessary to correct their imbalances.
We are continuing to do what we can to help those in difficulties, both through our participation in the international financial institutions, whose effectiveness must be safeguarded, and through our bilateral aid programme.