cash reserves. Audits are not required, and no governmental authority stands ready to make good on de- positors' claims if a Eurobank fails.
At present, outstanding loans far outweigh the Eurobanks' reserves, Zevin writes. Although loans to multinationals have been repaid out of profits, some $500 billion in loans to developing countries remain unpaid-and largely unpayable. Interest on these loans totals $60 bil- lion annually. Eurobanks handle the problem "rolling over" the debt-making...