The Governor looks at measures which might relieve problems in the longer term. He argues that:
- capital flows which do not add to the developing countries' burden of debt, particularly inward direct investment, could usefully make a greater contribution to financing needs;
- banks can continue to help by responding to successful adjustment measures taken by debtor countries by reducing spreads;
- banks could also help by lengthening maturity and grace periods to spread out debtors' servicing burdens-and by restructuring two or three years' debt at a time; and
- banks need to recognise in their balance sheets the deterioration that has occurred in the quality of certain assets.