2. Multilateral Financial Institutions
refer to international financial organizations which involve
various countries such as the International Monetary Fund-
World Bank (IMF-WB) and the Asian Development Bank
(ADB).
Bilateral Financial Institutions
pertains to the agreement between two countries.
set up by individual countries to finance development projects
in developing countries and emerging markets.
3. Developing countries may apply for loan agreement
with multilateral institutions or rich countries.
This doleful case where in a country applies for loan
in order to pay for an existing debt is called “debt
trap” or “debt cycle”.
4. The Debt Cycle
Apply for
Need to pay
new loan
existing loan
agreement
Additional Payment
debt of loan
5. Response of the Catholic Church
“Jubilee 2000”
Is an international coalition movement in over 40 countries
that called for cancellation of third world debt by the year
2000.
The idea was first articulated by Martin Dent.
