Conclusion

Even today, six years after some of the countries with large external debts first experienced payments difficulties, the whole question of international debt remains one of the most difficult problems facing the world economy. Despite strenuous efforts by the IMF, the BIS and the central banks, the dangers arising from individual countries’ long term inability to pay have not been overcome. The consequences for the international financial system cannot be overlooked. Even though they were not the sole cause, it is generally agreed that the two oil shocks of the 1970’ s provided the point of departure for the present situation. It was the sheer size of these shocks that made them a phenomenon unlike any that had previously been experienced.