Debt crisis in developing countries:INTRODUCTION:In the 1980′s the debt problem emerged whereby Argentina defaulted to pay for its international debt, this led to the emergence of a debt facilitating plan introduced by the World Bank and the international monetary fund (IMF). The paper focuses on the problem faced by these countries, the causes of high debt levels and the solutions to the debt problem in developing countries.Developing countries are faced with low standards of living, underdevelopment, and high poverty levels, weak and unstable currencies, low capital levels and low GDP. All the above problems faced by developing countries are caused by debts which affect not only those who acquire loans but also generations that follow.However despite the many problems associated with developing countries it is still possible to solve the debt problem and to attain high level credit repair s of development, this can be done through well laid strategies that involves all the sectors in an economy and this will be analyzed in this paper.Debt problem in developing countries:Debts in developing countries have increased over the years, many factors have caused this increase in debts including unfavorable terms of trade, rising international interest rates, increasing protectionism in the international market, irresponsible lending by international finance organizations and the rescheduling of punitive terms where countries delay payment.The above mentioned factors are external factors and that there exist internal factors that have led to the increased problem of debts include economic mismanagement, unsustainable government deficits and the maintenance of unrealistic exchange rates. All the above factors have led to the increased debt problem in developed countries.
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Debt Consolidation | 
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