PART 4 Responding to the debt crisis
- Margaret De Vries
- Published Date:
- June 1986
… those who have been predicting collapse since the onset of the debt crisis have been wrong. Action and cooperation are possible and if pursued with determination can lead to success.
J. de Larosière, addressing the Board of Governors, in Washington, September 24, 1984
From January 1, 1979 to December 31, 1985, the Fund, under the leadership of Managing Director J. de Larosiere, again responded in innovative ways to new challenges. Undoubtedly, the Fund’s main preoccupation in this period was with the external debt problems of several of its developing members. In August 1982, it suddenly found itself catapulted into a central role. The origin of the Fund’s involvement in the “world debt crisis” and developments until January 1985 are described in the first article. The second describes the views of the Managing Director, supported by the Executive Board, as of early 1985 on the prospects for the resolution of the debt problem and the new actions taken later in 1985. The highlights of the Fund’s other activities and decisions in these seven years can be found in the Chronology.