The financing pattern that supported the upsurge in current account deficits of developing countries through 1981 is unlikely to be repeated. In particular, new net lending through the international banking system is likely to be much more constrained in the future, so that foreign direct and portfolio equity investment will probably contribute a greater share of future capital inflows. New net bank lending to countries with heavy principal payments on rescheduled debt is likely to be particularly constrained. These countries could find it advantageous to encourage a greater inflow of direct and portfolio equity capital to maintain sufficient resource inflows to support an adequate growth rate, as well as to reduce vulnerability to any future deterioration in economic conditions.