Irregular payments of international financial obligations
Name(s):
Irregular repayment of international debts
Irregular international payment of interest due
Outstanding international interest payments
Nature
Developing countries are often unable to repay interests or instalments on principal of international loans in uniform amounts with regular periodicity. Foreign exchange problems, or internal liquidity crises may intervene, but mechanisms to adjust payments due are of an [ad hoc] nature. In the United Nations system uniform payments of assessments suffer from these and from political variables.
Incidence
Following the 1990 reunification, which fulfilled terms of a 1953 creditor's accord, the German government began to resume payments on its pre-World War II foreign debt of an estimated £85 million.
Aggravated by
Type
(D) Detailed problems