24 May 1989

15th plenary meeting

Role of transnational banks in developing countries

The Economic and Social Council,

Recalling General Assembly resolution 43/198 of 20 December 1988 entitled "External debt crisis and development: towards a durable solution of the debt problems",

Recalling its resolution 1988/58 of 27 July 1988 on strengthening the role of the Commission on Transnational Corporations and the activities of the United Nations Centre on Transnational Corporations in support of developing countries,

Reaffirming the importance of continuing the consideration by the Commission on Transnational Corporations of issues related to the activities of transnational banks,

Taking into account the linkage existing between the activities of transnational banks on the one hand, and the financial flow of resources to, and the external indebtedness of, the developing countries on the other,

Taking into account also the role of the United Nations Centre on Transnational Corporations in the context of the interrelatedness of the activities and policies of all relevant actors in the field of external indebtedness,

Taking into account further the contribution transnational banks can make to a solution of the external debt problems of developing countries and certain other countries with serious debt-servicing problems,

Requests the Secretary-General to prepare for submission to the Commission on Transnational Corporations at its sixteenth session a report on the present and potential activities of transnational banks related to the external indebtedness of developing countries and certain other countries with serious debt-servicing problems, taking into account the recent proposals that emphasize, inter alia, reduction of the stock and service of commercial debt.