92/YOUR MONEY OR YOUR LIFE!would soon be followed by other Third World governments the
world over.
The situation was soon contained, however, when the IMF and the
World Bank] ointly stepped In as the main Third World debt collection
agency. Within the Paris Club, which works closely with the IMF and
the World Bank, the North's creditor countries set about renegotiat
ing their bilateral loans with debtor countries. The London Club
oversaw the withdrawal of private banks from the Third World debt
market, and guaranteed that these banks' Interests would be fully
looked after.
Almost all the countries of the South agreed to debt repayment
plans that actually Increased the amounts to be paid over the medium
and long term.