The banks came out ahead because the debtor countries put up collateral to guarantee repayment of the principal and some interest payments.
32.
Sachs also urges the fund to focus less on bailing out debtor countries than on helping them negotiate relief from their creditors.
33.
The representatives of creditor countries may then request additional information or clarification from the minister regarding the situation in the debtor country.
34.
As debtor countries undertake reforms to stabilize and restore their macroeconomic and financial situation, Paris Club creditors provide an appropriate debt treatment.
35.
His solution is to turn the fund into a limited lender of last resort, lending money to debtor countries for a fee.
36.
The HIPC Initiative demonstrated the need for creditors to take a more tailored approach when deciding on debt treatment for debtor countries.
37.
An agreement likely will set economic targets for 1996-98, and prepare the way for Peru to discuss debt rescheduling with major debtor countries.
38.
The result has been a severe debt crisis, very weak growth across the euro zone, and sharp economic contraction in the debtor countries.
39.
On the international stage, Trichet chaired the Paris Club in the early 1980s, negotiating debt rescheduling agreements between debtor countries and sovereign lenders.
40.
He said the plan requires a very complex analysis of debtor countries, taking into consideration their overall debt, export resources and other factors.
