The Development of the Crisis

Abstract

The first country to declare itself unable to handle its cash flow on commercial terms was Poland, which called a meeting in London in March 1981. The meeting was held at the Plaisterers Hall, when the banks were informed by Jan Woloszyn that Poland could not meet its commitments. It took place in the large lower ground floor conference room of the modern Plaisterers Hall—built on the site where the previous hall had been demolished by a German bomb during the Second World War. Behind the bankers as they sat round the edge of this large room—which can accommodate cocktail parties for 500 or more—were the beautiful portraits and coats of arms of past dignitaries of the Company of Plaisterers. Behind Jan Woloszyn as he stood with his Polish delegation at the East end of the room came soft light from the March morning outside. Poland was regarded as an exceptional case, so that its inability to pay its way was not regarded necessarily as an omen for other countries, nor did it lead to any generalised loss of confidence.KeywordsCentral BankTrade CreditDebt CrisisInterest PaymentCurrent Account DeficitThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.