ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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The Dollar

ONE aspect of recent international lending by commercial banks that has not received sufficient attention is that in the decline in this lending from s 133 billion in 1981 to $ 74 billion in 1983, the share of the indus rialised capitalist world was the highest. In fact, the industrial countries accounted for 83 per cent of the decline, bank lending to them sliding from $ 86 billion in 1981 to $ 39 billion in 1983. The decline in commercial bank lending to the developing countries, on the other hand, was of the order of only $ 12 billion from $ 45 billion in 1981 to $ 33 billion in 1983. Of course, it is important that when one speaks of commercial bank lending changes, one must not overlook the bond segment of the international capital market. This is particularly relevant in the context of industrial country borrowings. While bank lending to industrial countries declined by $ 48 billion, the amounts they could raise by way of bond issues increased by $ 20 billion. Still, a gap of $ 28 billion remained.

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