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U.S. commercial banks wrote off an estimated $4.6 billion in loans to foreign borrowers in 1983 through 1985, according to a study by the Federal Reserve Board. About $2.2 billion of those losses were taken on outstanding loans to developing countries. The study noted that the U.S. lenders also reduced their claims against foreign borrowers by selling off some of their loans to banks in other countries and though debt-equity swap transactions.
