institutions have, for many countries, become the main source of external loan funds and are, in fact, the holders of very substantial portions of total indebtedness. JSM/edd A/S-18/PV. 2 28 (Mr. Coore, Jamaica) In the case of RrJ own country, for example, only 10 per cent of our total debt is owed to commercial banks, whereas some 40 per cent is held by multilateral financial ins ti tu tions. Because of the exis tirq policy rules of these institutions, their loans cannot be either restructured or refinanced. As a consequence, a number of countries now find themselves in the position where their annual repayments to these institutions exceed actual or even potential loan inflows and they are therefore net transferers of resources to one or both of them. Again using my own country as an example, we experienced a significant net negative transfer to the IMF between the years 1987 and 1989. This is a wholly ridiculous situation and unless some way is found to correct it these institutions will then cease to be a part of the solution to the problem of scarce foreign exchange and resulting economic stagnation and become part of the problem itself. We urge that immediate consideration be given to remedying this situation by either permitting these institutions to restructure or defer debt-servicing payments to them in appropriate cases or by creating a refinancing fund which can be used to prevent member developing countries becoming net transferers of resources. There is, however, a more fundamental and controversial aspect of the current operating practices of these institutions which, we believe, needs careful consideration. Partly by deliberate design and partly by default, the multilateral institutions have come to exercise a controlling power over the basic economic and financial strategies and even the detailed micromanagement of the economies of the 
**Analysis**
The text discusses the role of multilateral financial institutions in the economy of developing countries, specifically their loan practices and their impact on the debt and foreign exchange situation of these countries. It highlights the difficulties faced by countries in repaying their debts to these institutions and the need for reforms to address this issue.

**Category**
Economic development, International trade