The Problems of Debt 1)Many economists insisted that only a major restructuring of the world’s couldresolve the problem.2) To avert the danger of major defaults and to restoresecurity to the economic system Western bankers and governments will have toensure that they are imposing reasonable repayment terms on developingcountries terms that will not provoke revolution or chaos.3) They will have tolower interest requirements with some form of subsidy from the central banks ifnecessary.4) And they will have to strengthen the IMF as their ultimatesafeguard.5) It is not enough for the IMF and the banks to provide a financialfire brigade moving from one debt crisis to another.6) The IMF must be givenenough support to make longer—term loans in order to enable developingcountries to revive their exports without enduring crippling hardships.7)Unless Western governments face up to this challenge they may face politicalcatastrophes that will require far more costly intervention.