International financial confidence had been conoiderably weakeued. In mid-1985, South Africa faced a major financial crioio when the s (31 July 19851 reoorted that Chase Manhattan had refused to roll over ehort-t&m erbdit’or advance new credit, end other United States banko followed suit. The reeult of the L9S5 criols wee to cut off South Africe from major capital markete and the ceeeation of 811 conventional lending. 39. In September 1985, to prevent a ran on ite foreip exchange reservea, the South African.Govenvoent took two measureo that ware to play a key role in countering the impact of financial sanctions. Firat, the Gove-t imposed a unilateral moratorium on the payment of the principal of ohort-term international debt falling due during the nevt four months, and oubsequently eutended thin until the end of March 1986. Second, it reimposed the dual exchange rate eyetem abendonad in 1983 which seeke to make capital placement in South Africa more attractive by increasing the coot of withdrawing it. 40. Anxious to restore normal relations with the international fiuencial commmity and regain aocese to international financial marketr, the South African Government also worked out three ouccerrive agreanmits with itP creditora, in 1986, 1987 and 1989. In thin way, South Africa oought to ret& some of its fund8 and to buy time in which to re-eotablirh the country’e craiiitworthineso. Ihe second and third agreement8 provided for *(uIit optiona’ that would allow for the convereion of ohort-term frosen debt into long-term lo-year loane. 41. Theae various reecheduling arrangements, conriderably eased the presoure on South Africa by providing it with a financial lifeline to meet itr repayment obligationa. Converting short-term debt into LO-year exit optiona, with lenient debt rp,-?yment terme circumvent financial renctiona by f~Gii~thihi~ eiri mmw iGarlat Liuiirovur. in iha absance of tbsee measures, cspitai 
**Analysis**
The text appears to be discussing the financial crisis faced by South Africa in the mid-1980s and the measures taken by the government to address it. The text mentions the country's debt, the refusal of banks to roll over loans, and the imposition of a moratorium on debt payments. It also discusses the agreements made with creditors to restructure the debt and the impact of these measures on the country's financial situation. Given the focus on financial issues and debt restructuring, I hypothesize that the most fitting category is likely to be related to economic development or international trade.

**Category**
Economic development, International trade