Suppose a less developed country is having difficulty making payments on its foreign debts. What option does this nation have? It can ask its lenders for more loans in exchange for accepting a foreign portfolio investment from the World Bank.
It can ask its lenders to forgive the loans in exchange for accepting temporary control by the lender nation.
It can ask its lenders to forego the payments until the economy of the debtor nation is stronger.
It can ask its lenders for debt rescheduling in exchange for accepting a stabilization program from the IMF.