absorbed so much debt that creditors no longer expected that they would be fully repaid. Additionally, since at such high levels of indebtness, it was practically impossible for countries to find new lenders, the only way would be to forgive portions of the debt instead. For it is more than obvious that the market value of the amount due would stop rising through forgiveness, and it might even start declining, up to the point where creditors will find that it would be of their interest to forgive part of their claims. In conclusion, it is widely accepted that it is essential for the Third World debt problem to be solved, for economic development but mainly for social policy reasons. Though it might be stated that creditors do not usually operated under humanistic criteria, it is a common point that a significant debt relief will highly improve both the social and the economical status of a country, leading it to an increase of investment ability and to the necessary quality of life that is needed for a human society to exist and progress properly. ...
