International lending by commercial banks has played an increasing role in the flow of capital to developing countries. The servicing of bank debt and the variability in the net flow of financial resources from banks have become important factors in balance of payments management. Service on debt to banks was a major component of debt service in several debt restructurings during the latter part of the 1970s. The experience of six countries is discussed in this section, which focuses on the role of the banks before, during, and after debt crises and on the bank debt restructuring process.
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