UN General Assembly
1988

The debt crisis is debilitating for the countries affected, diverting attention and energies away from domestic political, economic and social needs. While the crisis has deepened in the past year, we see hope in the initiatives of some commercial banks to write off their loans and of Governments which have converted some of their official loans into outright grants. The proposal by the United Nations Conference on Trade and Development (UNCTAD) for a 30 per cent cut in commercial bad debts owed by the 15 most heavily indebted countries merits serious consideration. The World Bank and the International Monetary Fund (IMF) must engage more actively in the design and creation of a debt-reconstruction facility. Proposals abound, but the international community must quickly study various modalities to relieve those countries that are carrying impossible burdens. The United Nations has provided the forum for detailed discussion on the debt crisis and has participated in the search for solutions. Malaysia fully supports the United Nations efforts in this regard and endorses the recent recommendations by the Africa Recovery Review Committee substantially to increase financial flews to Africa to ensure reform and development.