security and less volatility in international financial conditions. Unless a -12- broadly based sharing of the adjustment burden is sought, the risks of unplanned and mutually damaging outcomes to current debt problems grow with time. A consultative process among debtors and creditors must be established in the context of broader efforts to construct a more orderly long-term basis for the provision both of liquidity and development finance. In this context, multi-year rescheduling has been an important new development, although it has been confined to only a few cases. The banks that have already adopted a package of improved terms involving reduced charges, rescheduled principal through 1990 and stretched out loans for a few Latin American debtor countries, should extend similar packages to other debtors, large and small, that undertake serious adjustment programmes. 60. Multi-year rescheduling ought also to be undertaken for those debtor countries whose debt is primarily from official sources - the low-income countries, especially those in Africa. A possible approach would be to use existing consultative groups or aid consortia to examine on a multi-year basis the national priorities, investment needs and economic and financial prospects of the debtors; and assess donors' willingness to provide new aid commitments for long-term adjustment programmes to be monitored by the World Bank or other international agencies. 61. Recent experience and medium-term projections of the likely future of financial flows imply an urgent need to reinforce the stabilization and development financing roles of IMF and the World Bank, respectively. That requires, above all, that those institutions be adequately funded, pending more fundamental consideration of their capacities to perform possible new roles. 62. In the medium-term, in support of their traditional roles, the policies and practices of IMF and the World Bank, in collaboration, where feasible, need to evolve further to meet the following objectives: facilitation of adjustment 
**Analysis**
The text discusses the management of international debt and the roles of international institutions such as the IMF and World Bank in promoting economic stability and development. It highlights the need for a consultative process among debtors and creditors to ensure a more orderly long-term basis for debt provision and development finance. The text also touches on the importance of multi-year rescheduling and the need for adequate funding of international institutions.

**Category**
International trade, Economic development