As in previous years, attention in this sector was
mainly focused on the various rescheduling talks
which form part of the debt problem. In a
number of instances these led to our being
obliged to furnish more "fresh money". As
already stated, we have expressed a willingness
to co-operate in the Baker Plan and, in line with
similar action on the part of the World Bank, to
provide additional funds for the debtor countries
for a further period of three years.
Further evidence of our co-operation with the
international organizations is provided by a
number of co-financing agreements entered into
with the World Bank, for Hungary and other
countries, and with the Inter American
Development Bank for Colombia.
The situation in regard to syndicated loans may
have been sluggish, but this certainly did not
apply to the issue of negotiable paper and the
related provision of NIFs, RUFs, etc. Because
the margins on these new credit facilities are
very slim, they have a clear tendency to depress
interest margins in the Euroloan sector. How
ever, the growth of these activities is such
that they are still contributing to group earnings.
We anticipate that this will continue to be the
case in the years ahead, although in view of the
small margins and the risks, we shall be
extremely selective in our approach to this
market.
