By 1982,the thirty most heavily indebted developing countries owed more than $600 billion to foreign lenders.Creditors initially diagnosed the debt crisis as a

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The debt crisis was initially diagnosed as a short-term liquidity problem, meaning that the countries were facing difficulty in meeting their immediate debt obligations but were expected to be able to do so in the medium to long term. This diagnosis proved to be incorrect as the debt burden continued to grow and become more unsustainable over time.

By 1982,the Thirty Most Heavily Indebted Developing Countries Owed More