of the plan also supported the conclusion that the relief brought about by them was less than what was needed. 74. Additional measures that could be taken to reduce the burden of debt/debt service related to: (a) the discretion given to transnational banks in choosing between debt reduction and new money options; (b) flexibility in the use of official resources by the debtor countries for the purpose of debt reduction; -30-(c) the extent of voluntariness of the participation of commercial banks in debt-reduction deals; (d) the need to determine the extent of reduction required for different countries by an international financial institution; (e) reforms in accounting, tax and regulatory provisions by creditor countries; (f) measures to expand the scope of debt/equity conversions by debtor as well as creditor countries; (g) ways to reduce capital flight from debtor countries; and (h) the creation of a new institutional arrangement to expedite debt-reduction negotiations. 75. Most delegations expressed the view that the continuing problem of external indebtedness posed a serious problem for the revitalization of growth in developing countries. It contributed to the unstable economic environment in those countries and was a key factor in the reduction of flows of foreign direct investment. Moreover, the problem of debt should be viewed in the broader context of trade, resource flows and development. 76. Many delegations noted that there was a close relationship between transnational banks and external debt, a large part of which was owed to transnational banks. While observing that some progress was achieved in the reduction of the stock and service of debt owed to transnational banks and noting some of the actions taken by transnational banks for that purpose, it was recalled that those measures did not prove very effective, and the burden of debt was getting progressively heavier. Those delegations considered the Brady plan to be 
**Analysis**
The text appears to discuss the issues related to external debt and its impact on the economic development of developing countries. It highlights the need for debt reduction, the role of transnational banks, and the importance of finding solutions to address the problem of debt. The text also mentions the relationship between debt and other economic factors such as trade, resource flows, and development.

**Category**
International trade, Economic development