WORLD BANK OFFICIAL CALLS FOR BANKER FLEXIBILITY
World Bank Vice-President David
Knox said creditor banks must become more flexible in providing
funds for Latin American debtor nations.
    "The international creditor banks must make their position
more flexible, ensuring a flow of funds for Latin American
countries, especially the most indebted," Knox told the semi-
official newsagency Telam.
    Knox said Brazil's decision last month to suspend payments
on a large portion of its foreign debt had shocked the creditor
banks. The banks were "in no hurry to provide funds for the
debtor nations," he said.
    But he said the situation of debtor nations transferring
funds to the developed should be reversed. "It must be the other
way round, to make development in indebted states possible."
    He said the World Bank was supplying special lines of
credit to make up for this inflexibility on the part of the
banks. It had increased its involvement in development projects
by 60 pct in the last two years, he said.
    Knox said banks would grant Argentina loans of up to two
billion dlrs over the next two years to help the country meet
growth targets. Argentina is currently negotiating a 2.15
billion dlr loan with creditor banks for 1987.
 REUTER
