The evolution and goals of lending to developing countries by the Bank for International Settlements

Examines the evolution of the role of the Bank for International Settlements (BIS), created in 1930 to promote co‐operation between central banks, into the arena of the Third World debt problem. The bank has extended loans to developing countries, such as Mexico, Argentina, Nigeria and Brazil since 1982. It arranges these extremely short‐term credits as “bridge loans”, while longer term, conditional assistance through the IMF and the World Bank is being negotiated. This activity reflects the BIS′s effort to contribute to economic and monetary stability in an increasingly interdependent world.