INTERNATIONAL INDEBTEDNESS 41 million, the distribution over time of this increase has been rather skewed. Thus, the time required to achieve the four component 25% marks of this $ 529,200 million was as follows : First 2596 : 6 years Second 25% : 2 years, 7 months Third 25% : 2 years, 1 month Fourth 25% : 2 years, 4 months. Total debt service payments (interest plus amortization) have also reached staggering proportions. In 1970, it was $ 9,400 million. In 1983, thi^ figure stood at $ 100,700 million, just slightly less than the increase in net indebtedness of$ 109,300 million. Interest payments in 1983 were $ 49,000 million, compared to $ 2,700 million in 1970, implying an annual rate of growth of 25%. The actual transfer5 of resources through international lending to LDCs during 1971-83 was 51% of the increase in net indebtedness. rhis proportion has been, however, on the decline. In the 1980-83 period, this ratio was only 2996, as compared to 70% in the previous 9-year period, \9^\'^9{\ Some important debt indicators providing a region-wise break-up are given in Appendix-I. A key feature has been the massive increase in the direct borrowings by governments (and State agencies) from the international financial m^rkf'i Public and publicly-guaranteed debt as a proportion of total outstanding debt has been increasing ovei the years, from 76.7% in 1974, to 82.4% in 1980 and 82.9% in 1983 (W"rld Bank. 1984/5, p.3). The process of rising indebtedness has been accompanied by a marked shift in th( source-composition of international loans. In the sixties, the major source of loan finance for LDCs were official agencies—both governments of industrialised countries and international agencies like the IBRD, the IDA and the IMF. Through the seventies, the major souicc for loans became commercial banks. A summary is given in Table-1.