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Third-world debt and forgiveness
The Christian Science Monitor
Heavily indebted nations are seeking relief from payments on foreign loans. Lender nations are asking that debtor countries adopt economic austerity measures to allow for payments of interest. Forgiveness of some debt is being considered.
The heavy debt burden has depressed economic growth in debtor countries, with one tragic result being that in some cases essential programs are being cut that provide aid to children. Lenders face the prospect that the very austerity measures they seek could provoke social unrest, threatening the stability of debtor governments.
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