In the early 1980s, international banks stopped lending to some developing nations in South America for fear they could not repay loans.

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Debtor nations had to work with the IMF to establish macroeconomic stabilization programs including policies or targets for factors such as: inflation, government spending, and deficits

Private banks would renegotiate with debtor nations only after debtors had changed their political system to reflect Western-style democracy.

Private banks would renegotiate with debtor nations only after those nations had worked with the IMF to adopt macroeconomic stabilisation programs. By the mid 1980s, dozens of debtor nations were formally re-negotiating international debt