UN General Assembly
1988

The issue of indebtedness has attracted considerable attention recently, both at the international level and within the African region. Some donor countries and financial institutions have undertaken to convert some loans to grants, extend some grace periods and maturities on outstanding debt and reschedule debt payments. These concessions are expected to provide much-needed relief. The programme co-ordinated by the World Bank is designed to provide concessional assistance, on terms of the International Development Association (IDA) type, to heavily indebted IDA-eligible countries in Africa which are implementing structural adjustment programmes. It is hoped that the benefits accruing from these developments will not be offset by a further deterioration in the terms of trade or a reduction in current levels of resource transfers. As 1988 draws to a close, despite the many favourable outcomes that have been recorded on the African and world economic fronts, there are various disturbing signs of accelerating inflation, rising interest rates, weakening commodity market prices and growing protectionism in the industrialized world that threaten to disrupt the modest gains that have been achieved.