text: process of dealing with debt-servicing problems (Trade and Developmen! Boardresolution 288 (xxvlrI) ). f/ This notwi thstandi ng, actual" multilateralrestructuring of debt is underlaken on a case-by-case basis within the context of econoni.c adjustment programmes, generally arranged wi!h the co-operation of the IMF and the world Bank. While this approach has helped to reduce the fears of a majorfinancial catastrophe, there is concern in many parts of the United Nations systemthat it does not adequately guarantee either expedj.tious resolution of the debt-servicing difficulties of the developing countrieE or uniform ereatment of small and large countries. 42. Successful renegotiation of external debt must provide a country with a schedule of principal repayments that are within the realm of economic and socialfeasibility, F'or debt.s subject to adjustabl-e interest rates, the fixed spreadsover the fluctuating base rate may be adjusted along with miscellaneous otherfees. The debtor country woul-d remain vulnerable, however, to increases ininterea! payments arising from fluctuations in the base rate. Although interestrate trends since mid-1984 have been favourable to debtors, there is reason to be apprehensive about future developments.^/40/597Engli 6h Page 13 43. To address such possibllities. numerous proposala have been made to decoupLe the interest payments of developing countries from inlernational market trends when tbe paying of market rates woul-d impose an excesslve burden on the debtor' on the level of individual new loans, the world Bank arranged it6 first loan package having such a feature last year as par! of its Pllot Programme of co-financing ltith private creditors. In that case, the borrower is paying a constant annual debt service, with changes ln narket-related interest payments offset by changes in principal repayments and with the World Bank taking over any resldual principal a! the end of the origlnal loan period. 44. Regarding interest payments on al-ready outstanding debt, no proposals are
analysis: The text discusses the debt-servicing problems of developing countries, the process of debt restructuring, and proposals to decouple interest payments from international market trends. The text focuses on the economic aspects of debt management and the need for a feasible debt repayment schedule. It also mentions the involvement of international organizations such as the IMF and World Bank. This suggests that the text is more related to economic development and international trade.