Key Ingredients are as follows
1. Most borrowing as done by the developing countries during 1970s and 1980s was done through the private sources such as commercial banks and other private lenders.
2. During this period, most of debt was taken by the developing countries on non-concessional terms. Characterized by shorter maturities and market determined rate of interest.
3. During the entire period of debt accumulation, developing countries has experienced enormous out flow of private capital.
4. Commercial banks as flushed with petro dollars and low demand for capital from industrialized nations are competing aggressively to lend to developing countries on favorable terms.