[Developing countries] In the agricultural regions which form the major part of developing countries, agricultural credit to farmers is supplied mainly by local money-lenders and traders. Exorbitant rates of interest, amounting to barely disguised usury, are charged. In addition, the lender is usually in a position to apply, or to threaten, a wide variety of sanctions which, although usually intangible, may maintain the borrower in a situation bordering on servitude, since it may be very difficult for him to pay off his accumulated debts. The lender is often also the local commodities broker-speculator.