Bank lending to developing countries in 1996 is expected to fall by nearly a third to $64 billion, according to a report released Thursday by the Institute for International Finance.

Most of the drop will occur in short-term financing, the group said. Brazil alone is expected to demand only $5 billion in short-term foreign bank loans this year, down from $12 billion in 1995. Also, Thailand is expected to need only $28 billion in short-term foreign bank loans, down from $35 billion last year.

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