Abstract
<jats:title>Abstract</jats:title> <jats:p>By 1978, Peru was in real crisis again and off track with its latest IMF program. General Morales Bermúdez sought more debt rescheduling, as the private bank effort to monitor Peruvian economic performance had failed. The banks finally sent Peru back to the IMF. The French worried Peru might try to use the Inter-American Development Bank, but it eventually approached the Paris Club. A new IMF stand-by assumed large amounts of debt relief from the creditor countries and the banks, plus a substantial World Bank loan. Comparability of debt relief between the Paris Club and the banks became a major, unresolved issue, one that would plague the Paris Club through the 1980s. Due to a lack of real economic reform, Turkey was also in serious trouble again in 1978. It tried to use the multi-layered Organization for Economic Cooperation and Development (OECD) mechanism and consortium again but met stiff creditor resistance. After much maneuvering and high drama, a creditor club run by the French with a thin OECD veneer handled Turkish debt relief with Michel Camdessus as a very skillful chair. Previously rescheduled debt was a central issue this time. The drama was repeated in 1979. Turkey did not like being treated like a bankrupt developing country. It only got major economic reform in the 1980s under Turgut Özal after a third Paris Club debt restructuring in July 1980, its last. Despite better Paris Club leadership under Camdessus, North Korea returned in 1979 to the dismay of the United States, Germany, and others.</jats:p>