QUARTERLY REVIEW JULY 1993 21974 FINANCIAL FLOWS TO DEVELOPING COUNTRIES FILE COPY THE WORLD BANK DEBT AND INTERNATIONAL FINANCE DIvISION PORTFOLIO INVESTMENT IN DEVELOPING COUNTRIES A World Bank Symposium September 9-10, 1993 at World Bank, H-Auditorium 1818 H Street, N.W. Washington, D.C. 20433 Organizers: Stijn Claessens and Sudarshan Gooptu (World Bank) The Debt and International Finance Division of the World Bank is organizing a conference on portfolio investment in developing countries on September 9-10, 1993, in Washington, D.C. The conference's topic is the rapid increase in portfolio flows to a number of developing countries. The conference will discuss the trends in these flows (the overall magnitudes and to which countries), the investors (who they are, what are their objectives, what are their constraints), the barriers to these flows, the various methods that can be used to monitor the flows, the benefits of these investments from the investors' and countries' point of view, and the policy issues facing developing countries (are these flows sustainable, are they volatile, what micro- and macro policies are required to attract and benefit from these investments). Papers will be presented by academics, investors and representatives of official agencies. A round table discussion will be held to discuss prospects and concerns regarding these flows. For more iformation about the conrce and to preregister, please contact Ms. Rose Vo, Debt and Internationat Finance Division, 7he World Bank, 1818 H Street, N. W., Washington, D. C. 20433, fax. (202)477-0661. QUARTERLY REVIEW JULY 1993 FINANCIAL FLOWS TO DEVELOPING COUNTRIES Sectoral Library International Bank for Reconstruction & oevelopment JUL 3 0 1993 THE WORLD BANK DEBT AND INTERNATIONAL FINANCE DIVISION CONTENTS & SUMMARY INTERNATIONAL LENDING AND EQuITY PORTFOLIO AND CAPITAL MARKETS FOREIGN DIRECT INVESTMENT * GLOBAL BORROWING PAGE 4 In the first quarter of 1993, $210 billion was S PAGE 10 raised in international capital markets, thanks The IFC's dollar-based composite index rose to falling interest rates and an easing of ten- 3.6 percent in the second quarter, with gains sions in the European exchange rate mecha- broadly based across emerging markets. For- nism. At $139.6 billion, bond issues were at a eigners are finding the 10 percent ceiling on record high. Lending activity, however, was participation in the Seoul market constrain- sluggish, continuing the trend of the past two ing as foreign investment continues to climb. years. Equity issues on developed stock mar- Mexico moves to encourage its domestic stock kets were down on a year ago. market as a source of funding, and the Czech * DEVELOPING-COUNTRY Republic and Slovakia start new exchanges. BORROWING PAGE 5 * NEW EQUITIES, QUASI-EQUITIES, . . . .. ~~~~AND DERIVATIVES PAGE 12 Developing countries raised $14.8 billion on international capital markets in the first three Equity issues jumped in the second quarter, months of 1993. Most was through bond is- thanks to the $3.04 billion global offering in sues, which reached a record $8.3 billion in the privatization of Argentina's state oil com- the second quarter (April to June 25), as a pany. Some companies are moving out of the wide range of borrowers came to international U.S. private placement market (under rule markets. Colombia tapped the eurobond 144A) and seeking a full listing in the public market for the first time, and several Mexican market. China agrees with Hong Kong to al- issues were given investment-grade ratings. low Chinese companies to list on the Hong * COMMERCIAL BANK CLAIMS PAGE 8 Kong stock exchange. Cross-border claims of BIS reporting banks U FOREIGN DIRECT INVESTMENT (including local foreign currency lending) fell AND PRIVATIZATION PAGE 13 by $14.6 billion in the fourth quarter. In the The Argentine government successfully sold second quarter of 1993, bank lending was still 45 percent of the state oil company. Other concentratedinahandfulofcountriesinAsia, countries are planning to privatize, over a including China, and in Turkey. short period of time, substantial state-owned assets. China continues to attract direct for- *ECOUNTRY CREDITWORTHINESS PAGE 9 .. eign investment, and other countries ease re- Latin American credit continues to improve. strictions to attract FDI. Mexico is rated investment grade by Duff and Phelps, and the Philippines is given a rating by both Moody's and S&P. Moody's also rates SECONDARY MAR KETS Mexico's domestic currency investment grade, FOR DEBT PAGE 15 and S&P assigns investment-grade ratings to three dollar-denominated peso-linked notes. High returns in the Brady bond market attract investors and boost liquidity. Debt prices have moved up on account of both global and lo- cal factors. 2 FINANCIAL FLOWS QUARTERLY CONTENTS & SUMMARY OFFICIAL FLOWS: BILATERAL COMMERCIAL BANK AND MULTILATERAL PAGE 16 PROVISIONING AND CAPITAL ADEQUACY PAGE 19 World Bank loan commitments increased to a record high. Russia receives $1.5 billion un- U.S. banks report large gains in earnings, but der the IMF's new Systemic Transformation nonperforming loans depress profitability of Facility. The G-7 agree to a $3 billion pri- Japanese banks. vatization fund for Russia, and the IFC ap- proves $71.5 million for two oil and gas sector projects in Russia. FINANCIAL BRIEF PAGE 21 * BILATERAL ODA. .. The use of financial derivatives by developing AND EXPORT CREDITS PAGE 17 countries is on the increase, and not only as At $60.8 billion, ODA continued its slow up- risk rmanagement tools. They also facilitate ward trend in 1992. DAC members' average market access through credit enhancement. share of GNP devoted to aid was 0.33 percent, the same as in the past two years. In fiscal 1992, Japan's EXIM bank commitments reached a STATISTICAL APPENDIX PAGE 23 record Y1,914 billion. DEBT RELIEF UPDATE * OFFICIAL CREDITORS PAGE 17 Five Paris Club agreements were signed in May andJune-Benin, Burkina Faso, and Guyana (on Enhanced Toronto Terms for severely in- debted low-income countries) and Peru (on Houston Terms for severely indebted lower- middle-income countries). Costa Rica re- scheduled its arrears with the Paris Club. * COMMERCIAL CREDITORS PAGE 18 In the second quarter, the Dominican Repub- lic andJordan made some headway in restruc- turing commercial bank debt, agreeing on a menu of options with the bank advisory com- mittees. THE WORLD BANK 3 INTERNATIONAL LENDING AND CAPITAL MARKETS GLOBAL BORROWING dropping to 12.6 percent. Other currencies that showed strong growth were the British ACCNTERNATIONAL CHAPISTOFALLMARKET ACTII pound, the Canadian dollar (because of favor- ACCELESTRATED, TANKS TO FAING OFable swap opportunities), and the French INTERESTONSIN ATHES AND EASING OFE franc. Elsewhere, offerings in ecu and other RATENSIONS IECANiE EROPEAOND E GES high-yield European currencies, which had RATE MECHANISM. GROSS BOND ISSUES enjoyed substantial growth last year, failed to REACHED A RECORD HIGH. REACHED A RECORD HIGH. recover to the levels of a year ago. According to the OECD, $210 billion was raised in the first quarter of 1993, up 51 per- TREND WAS TWO YEARS. cent on the first three months of 1992. Gross bond issues were a record $139.6 billion, a New loans in the first quarter of 1993 were year-on-year increase of more than 50 percent. $24.9 billion, about 8 percent up on ayear ago, Straightbondswere$113.4billion,81 percent but the share of syndicated loans in total fi- of all bond issues and 54 percent of total fi- nancing fell to less than 12 percent, the low- nancing. At $40.1 billion, medium-term note est since 1987. Most lendingwas to Asian coun- and euro-commercial paper issues slowed in tries and refinancing U.S. corporations. The the first quarter. share of project finance in total lending con- Declining world interest rates and an eas- tinues to rise. ing of tensions in the ERM, along with bigger Loan volumes in the syndicated credit borrowing requirements of sovereign govern- market were low. On the supply side, banks' ments, boosted bond issues. The near-record continuing concern about credit quality and low rates encouraged debt refinancing: sched- risk meant caution in raising foreign expo- uled redemptions and early repayments were sure. Despite the improved profit perfor- about $75 billion. Sovereign states raised more mance of U.S. banks, many have not increased. than $30 billion (according to the Bank of their international exposure in any appre-- England), compared with $64 billion for the ciable way. And Japanese banks, too, under whole of 1992. pressure to resolve their problem loans, re- There was an increase in bond offerings in main cautious in international lending. On most major currencies, with the U.S. dollar the demand side, the continued weak econo- sector still leading the way (at 34.6 percent of mies of the major industrial countries have the total and higher than a year earlier). kept capital demand low. Low-cost alternative Deutsche mark bonds gained in market share, financing, such as bonds and medium-term ranking second with 17.2 percent of all bond facilities, has also depressed demand. offerings, compared with 9.2 percent a year Banks' cautious approach is amply re- earlier. Yen bonds lost some market share, flected in widening average spreads on new TABLE I loans from 85 basis points in 1992 to 93 bp in INTERNATIONAL CAPITAL MARKET FLOWS the first four months of 1993. Loan maturities (US$ billions) Q I also shortened, from five years nine months, Instrument 1988 1989 1990 1991 1992 1993 to five years one month. Top-notch borrow- Bonds 227.1 255.7 229.9 297.6 333.7 139.6 ers, however, reportedly saw a narrowing of Equities 7.7 8.1 7.3 23.4 23.5 4.7 margins and a of maturities. Syndicated loans 125.5 121.1 124.5 116.0 117.9 24.9 lengthenng NIP and other back-up fadlities 16.6 8.4 7.0 7.7 6.7 0.7 ECPb and other non-underwrittenfacilities 76.6 73.2 66.2 80.2 127.9 40.1 * EQUITY ISSUES IN DEVELOPED STOCK Total 453.5 466.5 434.9 524.9 609.7 210.0 MARKETS FELL. Flows to developing countriesc (percent) 6.0 5.7 7.6 9.1 8.0 7.0 International stock markets rebounded in the a. Note issuance faclities. b. Euro-commercial paper. first quarter of 1993, with the U.S. S&P Index c. Including Eastem European countries, Source: OECD Financial Market Trends. of 500 stocks up by 3.7 percent, the Nikkei 4 FINANCIAL FLOWS QUARTERLY INTERNATIONAL LENDING AND CAPITAL MARKETS Index 19.4 percent higher, and the FI 100 way, raising $1.6 billion, due to strong eco- Index up by 1 percent. New equity issues, nomic growth and foreign investor interest. however, at$4.7 billion,werelowerthan ayear Thailand borrowed about $650 million, but ago. This partly reflects the slowdown in new borrowings by Indonesia and the Republic of issues by Latin American countries which Korea remained modest. began in the second half of 1992. Most new international placements on equity markets UNE SEC N ATER ILSTO were made by U.S. corporations. As a share of JUNE 25), INTERNATIONAL BOND ISSUES total financing, equity issues were sharply WERRER D $8.3 RBIL IONAS lower at 2.2 percent, almost half the level of a BORRWER TAPPED E I year ago. ~~~~~~CAPITAL MARKETS. year ago. Bond issues in the first half of 1993 are close to those for the whole of 1992. In the second DEVELOPING-COUNTRY quarter, emerging-market borrowers took BORROWING advantage of low interest rates to issue the record debt. These include first-time borrow- * IN THE FIRST THREE MONTHS OF 1993, ers from Chile, Colombia, and Hungary, as DEVELOPING COUNTRIES RAISED $14.8 well as established issuers from Mexico and BILLION IN MEDIUM- AND LONG-TERM DEBT many Brazilian banks. At $3.3 billion (April ON INTERNATIONAL CAPITAL MARKETS, to June 25), Mexico remained the biggest MOSTLY THROUGH BOND OFFERINGS. bond issuer, followed by Brazil ($1.5 billion) According to the OECD, developing countries and China ($700 million). Emerging-market (including those in Central and Eastern Eu- borrowers continue to favor the euromarket, rope) raised $14.8 billion in international althoughtheyhavebeenactiveintheU.S.and capital markets, almost a third more than in other markets. the first quarter of 1992. Of the $5 billion that Investors are still buying emerging-market went to Asian countries, mostwas raised in the securities, thanks in part to the protracted credit markets. For Latin American countries, weakness in industrial-country growth and low which raised $3.6 billion, bank creditwas neg- yields in the U.S. market. (The yield on the ligible, but bond offerings rebounded to $3.5 billion. At $2 billion, borrowings by Central TABLE 2 INTERNATIONAL BORROWING BY SELECTED DEVELOPING and Eastern European countries (maily COUNTRIES Hungary and the Czech Republic) were (US$ millions) greater than in the whole of 1992. 1991 1992 1992Q4 1993QI Borrowers continued to prefer bonds. De- Total Bonds Total Bonds Total Bonds Total Bonds veloping-country new international and for- Argentina 725.0 725.0 1,529.2 1,529.2 250.0 250.0 395.0 395.0 Brazil 1,229.6 1,211.6 3,010.0 2,830.0 360.0 330.0 820.0 820.0 eign bonds in the first quarter were twice as Chile - - 350.0 - 250.0 - - - high as the issues a year earlier. Mexican bor- China 2,595.1 263.0 4,043.2 1,274.0 1,741.9 553.0 2,043.6 411.1 India 150.4 150.4 200.6 - - - - - rowers again loomed large, with issues worth Indonesia 5,526.5 294.1 2,641.2 611.0 521.2 120.0 425.7 30.0 $2.2 billion, but Brazilian borrowers were also Korea, Rep. of 6,093.7 2,446.4 5,204.0 3,191.6 1,322.0 840.0 1,057.3 642.3 $2.2 bilion, but Brazlian borrowers were also Malaysia 412.0 190.2 1,270.6 - 193.0 - 446.5 - active ($820 million). Mexico 5,554.1 2,129.7 3,373.6 2,923.4 1,540.5 1,540.5 2,162.2 2,162.2 Pakistan 96.0 - - - - - - - Loans to developing countries were $4.3 Tha land 1,842.2 31.4 2,718.3 646.1 1,017.9 171.1 920.6 274.1 billion in the first quarter of 1993, well down Turkey 2,279.5 639.8 4,579.9 2,777.1 1,422.4 1,089.9 1,329.7 1,074.7 Venezuela 581.3 581.3 1,035.4 830.4 - - 198.4 130.0 on the $5.9 billion in the first three months Zimbabwe 170.0 - 115.0 - 30.0 of 1992. Ifloans to SaudiArabiaare excluded, Czech Republica 278.3 278.3 39.5 15.5 - Hungary 1,378.3 1,237.8 1,446.1 1,234.8 618.4 618.3 1,417.8 1,368.8 however, lending was 41 percent higher than Poland 4.7 - 8.7 - - - a year ago. Lending to Asia was up from $1.8 a. Data before January 1993 refer to Czechoslovakia. Note: Bonds include both international issues (in euromarkets) and traditional foreign issues. billion to $3.4 billion. Chinese entities led the Source: OECD Financial Statistics (monthly). THE WORLD BANK 5 INTERNATIONAL LENDING AND CAPITAL MARKETS TABLE 3 international bond markets, and this issue was BOND ISSUES BY TYPE OF designed to set a benchmark for other would- BORROWER be Colombian borrowers. (US$ millions) YTD' Q23 The offering was followed by two euro is- 1992 1993 1993 sues. One was a $150 million five-year euro- All developing countries 21,245 16,224 8,297 note by Colombia's state-owned oil company, Private 9,771 7,037 4,742 Empresa Colombiana de Petroleos, a first for EastAsia and Pacifc 73 9 641° Ecopetrol. It was priced to yield 218 bp over South Asia 0 0 0 comparable U.S. Treasuries, but spreads tight- Europe and Cental Asia 65 0 0 ened after the Republic was given a BBB- Latin America 7,512 6,082 4,101 Middle East and N. Africa 0 0 0 investment-grade rating. Sovereign 5,761 4,548 1,131 Celulosa Arauco y Constitucion (Celco), a Sub-Saharan Africa 300 319 0 private forestry company, became only the South Asia 0 0 0 second Chilean corporation to borrow in the Europe and Central Asia 4,446 3,156 664 Latin America 700 1,073 467 bondmarketwith a $150 mllion five-year euro Middle East and N. Afnca 0 0 0 issue. Although Chile is the highest-rated Other public 5,713 4,639 2,423 Latin country, central bank restrictions on Sub-Saharan Africa 336 0 0 East Asia and Pacific 2,818 2,075 777 foreign issues by Chilean corporations have South Asia 0 0 0 held back borrowings. At 210 bp over compa- Europe and Central Asia 123 63 63 Latin America 2,435 2,501I 1,583 rable U.S. Treasuries, Celco's bond had the Middle East and N. Africa 0 0 0 tightest spread of any first-time Latin issue, a. As of june 25, 1993.an(rprel)8pectwspaedih Source: Euromoney Bondware and World Bank staffestimates. and (reportedly) 85 percent was placed with U.S. and European institutional investors. benchmark 30-yearTreasurywas close to a six- After an absence of two years, the Repub- year low.) Institutional investors also boosted lic of Venezuela returned to the eurodollar demand for developing-country bonds. marketwitha$150millionthree-yearissue (its Spreads, although narrowing (especially for second dollar bond), which was priced to yield Mexican borrowers), remain large. They 470 bp over comparable U.S. Treasuries. In range from about 210 bp for blue-chip Latin April, Venezuela also borrowed DM150 mil- credits to about 600 bp for Brazilian banks. lion in the euromarkets. These spreads have attracted investors, even Most recent Eastern European bond issues though the secondary market in developing- have been by sovereign borrowers, with inves- country bond issues (other than debt conver- tors concentrated in Europe. The National sion bonds) is still rather illiquid, especially Bank of Hungary issued its second eurodollar for small issues. bond, a five-year $150 million bond. Placed in Europe, it was priced to yield 275 bp over comparable U.S. Treasuries. The Hungarian BENCHMARK BOND ISSUE PAVES THE WAY state-owned foreign trading bank, Magyar FOR OTHER COLOMBIAN OFFERINGS, AND A KulkeresKedelmiBank,becamethefirstEast- CHILEAN COMPANY TAPS THE EUROBOND. ern European commercial bank in recent MARKET.. . years to tap international markets, with a The government of Colombia issued its first DM100 million five-year bond yielding 324 bp eurobond, a $125 million five-year bond overcomparableGermangovernmentbonds. priced to yield 215 bp over comparable U.S. Another first was the EBRD's participation in Treasuries. The issue, which was widely placed the syndicate for this issue. among investors, was increased from an ini- The Development Bank of the Philippines tially planned $100 million. Colombia has issued a $175 million five-year eurobond at a been slower than others in the region to use 310 bp spread over comparable U.S. Treasur- 6 FINANCIAL FLOWS QUARTERLY INTERNATIONAL LENDING AND CAPITAL MARKETS ies. This spread is lower than that on the market, or the so-called Yankee market. The Republic's three-year eurobond issued last company issued a $200 million 10-year bond, February. The deal, which is unsecured, is with a spread of 337.5 bp over comparable expected to provide a benchmark for other U.S. Treasuries. Banco Nacional de Comercio Philippine issues. Exterior, a Mexican financial institution, is- sued $250 million in seven-year notes at a 215 CEMETwoND BIGASSSCAMEFROM MEXTICO'L bp spread over comparable U.S. Treasuries in the U.S. public market. Pemex, the Mexi- INVESTORS WERE ATTRACTED BY THE can state oil company, is reportedly adopting INVESTMENT GRADE AND THE ANTICIPATED Generally Accepted Accounting Principles AFTER-ISSUE LIQUIDITY OF CEMEX'S (GAAP) to enable it to list in the U.S. public RECORD $1 BILLION OFFERING. market. Cemex's $1 billion offering in May (the larg- U JAPAN EASED RESTRICTIONS ON FOREIGN est eurobond issue by a Latin creditor) was twice the planned amount. Although it was ( priced at 370 bp over U.S. Treasuries, the PLACEMENT) MARKET. THE NEW RULES ARE spread narrowed to 345 bp when trading be- DND TO BROADE TH RNET gan. The issue received an investment grade of BBB- from Duff and Phelps; Moody's gave TRADABILITY. it a Ba2 and Standard & Poor's a BB+ (both BeginningApril 1, thejapanese Securities and the same as the sovereign ceiling). Institu- Exchange law was amended. New rules for tional investors, who generally want higher- non-Japanese issuers in the private placement quality credit than retail investors, bought (Shibosai) market, which is similar to the U.S. much of the issue. Investors were also attracted private placement market under rule 144A, by the size of the issue, which will make it one increased the attractiveness of this market for of the most liquid. both issuers and investors. The number of Bancomer, a big Mexican bank, issued a Qualified Institutional Investor categories has $750 million five-year bond at a launch spread risen from 11 to 15. Two types of issue are now of 283 bp over comparable U.S. Treasuries. allowed-a Q bond, which can be sold to any Increased from an initial planned size of$300 qualified institutional investor, and a 49er, million, the bond has a 144A tranche. It also which can be sold to 49 (or fewer) domestic hasaBBB-investment-graderatingfromDuff investors. Ceilings on issue size have been and Phelps, allowing institutions that are re- raised, including a doubling for issuers rated stricted to holding investment grade to pur- A or lower to Y20 billion. Likewise, the matu- chase the issue. rity terms have been eased, and now range Emerging-market issuers, especially Latin from two to 20 years. So, too, have the rules borrowers, have made heavy use of the pri- on the resale of bonds. vate placement market under rule 144A. This private placement market allows foreign bor- BRAZIL TIGHENE REGTION ON BORROWERS TO SLOW THE TIDE OF BOND rowers who have not met the U.S. Securities and Exchange Commission's onerous report- ISSUES ing requirements to gain access to the U.S. Brazilian banks have been particularly active capital market. But a narrow investor base has in bond markets, issuing debt in small meant that secondary market trading is low amounts (typically $50 million) for relatively in the rule 144A market. Transportacion short maturities of two and a halfyears. These Maritima Mexicana, a shipping company, proceeds are generally reinvested in the do- became the first Mexican corporation to is- mestic money market, where higher real in- sue in the U.S. public (SEC-registered) bond terest rates prevail. In an attempt to slow the THE WORLD BANK 7 INTERNATIONAL LENDING AND CAPITAL MARKETS pace of international borrowing, Brazil's cen- with an increase of $17.1 billion in the third tral bank announced tighter regulations on quarter. The increase in claims on non-OPEC borrowers. Under the new rules, the mini- developingcountries slowed (by$4.8 billion), mum maturity of new issues that are exempt compared with a rise of $13.9 billion in the from an onerous tax has been raised from two previous quarter. BIS banks' claims on East- and a half to three years. And the exemption ern Europe were down (by $1.2 billion), after from domesticwithholding taxes on issueswill rising by $2.3 billion in the third quarter. By apply only to debt with maturities of eight or contrast, claims on OPEC countries were more years, compared with five or more years sharply higher by $5.9 billion (compared with previously. These regulations could result in a rise of less than $1 billion in the third quar- more structured deals with put options. ter), but were still below the increases seen in the first half of 1992. Claims on African coun- tries stagnated. COMMERCIAL BANK CLAIMS Most of the slowdown was in lending to Asia's major developing economies, except fo-r F GLOBAL BANK LENDING FELL IN THE China, where new lending more than doubled, with claims rising by $4.5 billion. After the temporary upsurge in BIS banking Lending to non-OPEC Latin American coun- activity in the third quarter of 1992, gross in- tries was mixed, with claims on Mexico falling ternational claims (cross-border plus local by$1.3 billion, thanks to debt buyback, restric- foreign currency claims) fell by $14.6 billion tions on Mexican banks' foreign borrowing, in the fourth quarter. The decline was much and a shift to securities markets. High domes- slower than that witnessed in the first half of tic interest rates helped increase outstanding 1992, however, and after adjusting for re- claims on Argentina by $1.7 billion. Of the deposits, net international bank credit (or new $5.9 billion increase in claims on OPEC, $1.2 lending) rose by $15 billion. billion went to Indonesia, where local compa- Japanese banks continued to scale back nies took advantage of cheaper funds overseas. international lending. Banks in Japan saw a Deposits by the former Soviet Union con- modest fall ($9.9 billion) in their external tinued to build up, growing by $2.7 billion in position, accounted for mainly by the large the fourth quarter, but unlike in the previous decline in external yen assets. The cross-bor- quarter, most of the growth was due to fund- der activity of banks in the United States, how- ing requirements of domestic banks' foreign ever, rebounded in the fourth quarter, boost- branches rather than capital flight. Saudi Ara- ing external claims by $5.9 billion. Banks in bian residents drew down $3.6 billion to meet Germany, France, and United Kingdom also budgetary requirements, andVenezuelan resi- reported growth in cross-border claims, unlike dents withdrew $1.7 billion for capital repa- banks in the Benelux and Nordic countries triation. and Switzerland. * IN THE SECOND QUARTER OF 1993, BANK * BIS BANKS' EXPOSURE TO DEVELOPING LENDING WAS STRONG IN ASIAN COUNTRIES, COUNTRIES AGAIN INCREASED IN THE ESPECIALLY CHINA, AND IN TURKEY. THERE FOURTH QUARTER OF 1992, BUT AT A WERE ALSO SOME FIRSTS: THE LARGEST SLOWER PACE. PRIVATE SECTOR LOAN TO A LATIN BIS banks' outstanding claims (adjusted for BORROWER, AND AN UNGUARANTEED LOAN exchange rate changes) on Eastern Europe FOR A RUSSIAN COMPANY. and the former Soviet Union, OPEC, and non- China, which has been the biggest developing- OPEC developing countries rose by $9.5 bil- country borrower in credit markets, contin- lion in the fourth quarter of 1992, compared ued to draw on bank loans. Other Asian coun- 8 FINANCIAL FLOWS QUARTERLY INTERNATIONAL LENDING AND CAPITAL MARKETS tries, such as Malaysia and Thailand, borrowed country with an investment-grade rating (by substantial amounts. Syndicated lending to Standard & Poor's). Such a rating affords Turkey is also showing strength; several cred- borrowers access to a wider investor base. For its, with guarantees or credit enhancements, example, some institutional investors (pen- have been arranged in recent months. sion funds and insurance companies, in par- Mexico's largest mining company, Grupo ticular) are constrained by rules and prudent Industrial Minera Mexico, obtained a $400 practices to investment-grade securities, and million six-year syndicated term loan at a float- some markets (theJapanese bond market, for ing 3 percent plus LIBOR. This is the largest instance) restrict access to issuers with a mini- loan for a Latin private sector borrower since mum rating. the debt crisis. It is also secured, backed by In June, S&P assigned a BBB- rating (its receipts from exports of copper, gold, silver, lowest investment grade) to Colombia's $125 and other minerals, and will be used to refi- million five-year euronote, based on the nance short- and medium-term debt. The deal country's "stable" outlook. This is the rating TABLE 4 includes hedging of commodity price risk and agency's second investment grade for a Latin SOVEREIGN FOREIGN CURRENCY DEBT interest rate risk for the borrower. American country; it reflects Colombia's de- (Long-term rating) International markets have also provided clining external debt burden, uninterrupted Moody's S&P the first unsecured loan to a Russian corpora- foreign debt servicing, and comfortable re- Argenbna B I N/A tion. AvtoVAZ, Russia's biggest car maker and serves. Brazil B2 N/A one ofitslargestexportearners, signed a$100 In May, Duff and Phelps, a U.S. rating Chile N/A BBB/ million seven-year revolving medium-term agency, gave an investment-grade rating to China Baala BBB' Colombia N/A BBB- loan facility in April. The money will be used Mexico, assigning a BBB rating to an upcom- Czech Republic Baa3 N/A to finance production of new models and to ing United Mexican States yen-denominated Greece Baal BBB-2 Hungary Bal BB+2 pay for foreign equipment. Elsewhere, a build- borrowing of about Y10 billion. The agency India Ba2 BB+ own-transfer (BOT) financing for Hungary, also assigned a BBB- rating to two Mexican Indonesia N/A BBB- Korea, Rep. of Al A+2 the first for a toll road in Eastern Europe, is bonds: Cemex's $1 billion five-year issue and Malaysia A2 Al near completion. Half of the estimated $375 Bancomer's $750 million five-year bond. Mei Ba2 BB+; million is to be financed in the domestic bond These ratings reflect both Mexico's sovereign A- markets, with possible EBRD and IFC partici- risk and company-specific risk. Philippines Ba3 BB- Portugal Al A+' pation. The pricing on the foreign loan com- Thailand A2 A-' p THE PHILIPPINES IS ASSIGNED A FIRST- Trnidad ponent is reported to be comparable to that TMRAIGBBOHODYSNDand Tobago Ba2 N/A available for projects in Southeast Asia. TIME RATING BY BOTH MOODY'S AND Turkey Baa2 BBB' STANDARD & POOR'S. Venezuela Bal BB' Note: Rating by Moody's Investors The Philippines was assigned a Ba3 rating by Service as of July M 1993, and that by Standar-d & Poor's as of July 5, COUNTRY Moody's and a BB- rating by Standard & Poor's 1993. a. Sovereign ceiling rating-no CR ED I TWO RT HIl NESS because its medium-term prospects have im- central govemment or guaranteed debt rated. proved following liberalization of trade and * The first rating applies to foreign * COLOMBIA BECOMES ONLY THE SECOND currency debt and the second to capital controls and implementation of debt domestic currency debt. LATIN AMERICAN COUNTRY TO RECEIVE AN I. lndicates stable outlook. relief. The below-investment-grade ratings 2. ndicates positve outlook. INVESTMENT-GRADE RATING FROM were given to the Philippines' $150 million Ratngsystemsforinvestment- STANDARD & POOR'S. MEXICO IS GIVEN AN . grade bonds are as follows: euronote issued in February. S&P also gave a Mooy's S&P INVESTMENT GRADE BY DUFF AND PHELPS. 1 od' & "stable" outlook for the Republic. Elsewhere Aaa AM Aal AA+ A surge in private long-term capital flows and in Asia, Moody's gave a Baal rating (invest- Aa2l M Aa3 AA- more favorable borrowing terms in the bond mentgrade) to the Guangdong International Al A+ A2 A market (thatis, tightening spreads and length- Trust and Investment Corporation's $150 A3 A- BaalI BBB+ ening maturities) show that investor percep- million floating-rate euronote (issued in B BBB tion of Latin American credit has improved. April). The rating for China's sovereign long- Baa3 BBB- Source: Moody's and Standard & Yet, until recently, Chile was the only Latin term debt is the same. Poor's. THE WORLD BANK 9 INTERNATIONAL LENDING AND CAPITAL MARKETS * MEXICO'S PESO DEBT IS RATED BY BONDES (AA-), and Bonos Ajustables del MOODY'S, AND S&P ASSIGNS INVESTMENT- Gobierno Federal or Ajustabonos (AA-), GRADE RATINGS TO THREE DOLLAR- which are held as collateral. DENOMINATED PESO-LINKED NOTES. S&P also assigned an A- rating to peso- In May, Moody's rated as Baal long-term peso- denominated promissory notes and a BB+ rat- denominated instruments of the Mexican ing to dollar-denominated medium-term government-seven Bonos de Desarrollo notes and MTN programs of Banco Nacional (BONDES) maturing in 1995. It also assigned de Mexico; Banamex has roughly 25 percent a Prime-2 rating to the government's short- of the Mexican banking market. S&P also gave term peso-denominated debt; this applies to an A rating to PEMEX's asset-backed securi- Certificados de la Tesoreria de la Federacion ties-$366 million of certificates (due in 2000) (CETES), popular with foreign investors. backed by proceeds from Pemex's future These ratings are higher than those assigned crude oil sales and placed with U.S. institu- to Mexico's foreign currency debt, reflecting tional investors. The rating is because of the Moody's view that these debt instruments have low risk and the high quality of the asset back- better prospects of being serviced. ing. Pemex itself has a rating of BB+. S&P assigned ratings in the range of AA- In April, Venezuela's outlook was revised andA-1+ to three issues (totaling$1.1 billion) byS&P from "stable" to "negative" because of denominated in U.S. dollars but collaterized its difficult political climate and uncertainty by short- and medium-term Mexican peso se- about economic reform. S&P also revised the curities. These ratings are similar to those of outlook for Turkey to "negative" owing to the peso-denominated obligations of the uncertainty about the government's ability to United Mexican States, such as CETES (A-1+), reduce the fiscal deficit. EQUITY PORTFOLIO AND FOREIGN DIRECT INVESTMENT EMERGING STOCK MARKETS In Asia's markets, Malaysian shares have surged 16.2 percent in dollar terms so far this *ITHEXIFC'SDDOLLAR-BASEDCCOMPOITHE year, 14.7 percent in the second quarter. INDEX MOVED UP 3.6 PERCENT IN THE Upcoming party elections have sent specula- SECOND QUARTER ON BROAD-BASED GAINS tive and second-tier stocks much higher, but 2nd IN EMERGING MARKETS. blue-chip stocks have remained steady. Some Quarter Thanks to improved political and economic speculative stocks have increased fourfold to _ -1 trends, Latin American stock markets per- sixfold in price, and trading volumes have PL-rcentage change formed strongly. In Brazil, where monthly been at record levels. Since one Since last inflation is close to 30 percent, stock prices On the Indonesian stock market, prices yearago quarter rose on renewed hopes that the administra- have risen a strong 35.9 percent (in dollar +57.0 +30.9 tion will achieve much-needed fiscal disci- terms) so far this year, but the Jakarta Index pline. In Venezuela, the stock market climbed is still below its 1990 peak. Although economic sharply on resolution of the political situation, fundamentals are improving, local investors while Colombia's IFC price index was 6.6 per- have driven up stock prices in the belief that cent higher on the back of healthy corporate the government will raise the 49 percent ceil- earnings. Both the Argentinian and Chilean ing on foreign ownership of stocks. stock markets posted modest gains. The Mexi- The Turkish market continued to post can stock market continued to struggle amid large gains on account of good first-quarter concerns about passage of NAFTA by the U.S. earnings. Following an increase of 28 percent Congress and Telmex's projection of flat sec- in the first quarter, the IFC's Turkey index ond-quarter earnings. rose 64.2 percent in the second quarter. 10 FINANCIAL FLOWS QUARTERLY EQUITY PORTFOLIO AND FOREIGN DIRECT INVESTMENT Jordan's stock market also posted large gains in the second quarter, with the IFC'sJordan CHART-; / st . . ~~~~EMERGING STOCK MARKETSn prce index rising more than 22 percent. Percentage change Since one Since last Quarter price Percentage change ~~~~~~~~~~~~~~~~~~~~year ago quarter 1 993 * FOREIGNERS ARE REPORTEDLY FINDING - 3.. THE 10 PERCENT CEILING ON FOREIGN PARTICIPATION IN THE SEOUL STOCK + I.4 +2.2 MARKET CONSTRAINING. -26.3 -31.4 +8.7 1 J +l7.9 Foreign investors invested some $2.5 billion in the Seoul stock market in the first half of the year. They might invest more but for the 10 percent ceiling on foreign ownership in most quoted companies. That limit has al- ready been reached for about 15 percent of +6.7 +0.1 the companies listed on the Seoul exchange, +35.5J 8.6 -6.2 _9 3 although more than 50 percent of the foreign share quota is remaining, according to official estimates. Understandably, blue-chip compa- a nies were snapped up and their ceilings reached first. The government has not raised +25.2 the limit because of concerns about large flows +272 4.5 of funds adding to inflationary pressures and foreigners purchasing big stakes in major . -_-_111111_._ _ _ companies and important sectors. ings on the Prague exchange were shares in * MEXICO MOVES TO ENHANCE THE one company and six bonds. Trading volumes DOMESTIC STOCK MARKET AS A SOURCE OF are expected to rise dramatically once trading FUNDING, AND THE CZECH REPUBLIC AND of shares (using mass privatization vouchers) SLOVAKIA START NEW EXCHANGES. is permitted. In April, Mexico announced plans to reform the domestic securities markets along the lines D ALTHOUGH ATIO. REGUL SA of U.S. markets. Proposed legislation would IRETIPATICIATIN BY UAs. tighten insider trading rules, improve disclo- INSTITUTIONAL FUNDS IN CHINA'S B SHARE sure requirements, and introduce new rules MARKET, THE MARKET WAS SUBDUED IN THE for public listing of companies. Listing of for- SECOND QUARTER. MEANWHILE, CHINA eign stock on the domestic exchanges will be LAUNCHES ITS FIRST NATIONWIDE STOCK allowed, and market-makers will be estab- PRICE INDEX. 2nd Quarter lished to improve stock market liquidity. Self- Investor response to China's B share issues was 1993 regulation, too, will be enhanced. weak, with some issues undersubscribed. Elsewhere, both the Czech Republic and Prices (of both A and B shares) on the Shang- Percentage change Slovakia are developing their stock exchanges hai and the Shenzhen markets fell 30 percent Since one Since lost year ago quarter to enhance financial sector efficiency. In Aplil, in May, and another 30 percent in June. The +24.5 +q14.7 Slovakia's Bratislava Options Exchange be- weak performance is attributable to an over- came the first such exchange in Eastern Eu- supply of B shares, pressures in the foreign rope, and it has started trading futures and exchange market, and investors favoring the options on the shares of seven Slovak compa- Hong Kong market as an indirect route into nies. Trading also began on the new Prague China. Another concern is believed to be and Bratislava stock exchanges. The first list- delays in reporting 1992 financial results for THE WORLD BANK 11 EQUITY PORTFOLIO AND FOREIGN DIRECT INVESTMENT companies listed on the two exchanges, along lent to about $14 million) from the sale of with lack of uniformity in accounting prac- Ordinary Participation Certificates. A Philip- tices. So far, the May decision by U.S. securi- pine company,JG Summit, raised $71.08 mil- ties regulators to allow direct investment by lion, also through an international initial institutional funds in the China's B share public offering, placing $435 million in new market has had little impact. ordinary shares in global depository receipts. Injune, Chinalauncheditsfirstnationwide The issue, which was oversubscribed seven stock price index covering stocks listed on the times, was placed largely with institutional two major exchanges for a trial period. The investors in Europe, Hong Kong, Singapore, Xinhua Stock Price Index comprises 30 of the the United Kingdom, and the United States. 92 Class A shares available to Chinese inves- JG Summit also placed shares in the U.S. tors and listed on the Shanghai and the market under rule 144A. Two Chilean com- Shenzhen exchanges, as well as all (23) Class panies also had equity offerings through ADSs. B shares available only to foreign investors. Some Latin companies are moving out of Official statistics put the combined trading of the equity market under rule 144A into the B shares at $2.41 billion in these two ex- public market. Corporations thatused the rule changes, and that of A shares at an estimated 144A private market to test the demand for $15.89 billion in the first five months of 1993. their shares are finding that the market does not give access to a wide range of investors. At the same time, "qualified" institutional inves- NEW EQUITIES, QUASI- tors in this market are finding that it lacks li- EQUITIES, AND DERIVATIVES quidity, making it difficult (and costly) to unload shares. * EQUITY ISSUES BY DEVELOPING-COUNTRY In April, Corimon, aVenezuelan company, BORROWERS JUMPED IN THE SECOND converted its 144Aglobal depositoryshares to QUARTER, THANKS TO THE $3.04 BILLION ADSs listed on the New York Stock Exchange ______=__________ 5GLOBAL OFFERING IN THE PRIVATIZATION OF (NYSE). This was followed by Baesa, an TABLE 5 THE ARGENTINE STATE OIL COMPANY, YPF. BEST PERFORMING Argenunean bottler, whose newADSs are also DEVELOPING-COUNTRY SOME COMPANIES ARE MOVING OUT OF THE listed on the NYSE. Argentina's Banca de CLOSED-END FUNDS, U.S. PRIVATE PLACEMENT MARKET (UNDER lictoo,ohash movedEfromg theina's mar- JUNE Galica, too, has moved from the 144A mar- Market % Avg. return RULE 144A) AND SEEKING A FULL LISTING ket to a full listng, and other companies are Chile (6) 7.56 TO WIDEN THEIR INVESTOR BASE. reportedly looking to leave the private place- Turkey(2) 7.34 At the end ofJune, theArgentine government ment market under rule 144A. Pakistan (1) 7.02 Latin America(l5) 5.95 sold 45 percent of Yacimientos Petroliferos Indonesia(12) 4.98 Fiscales (YPF), the national oil company, in Brazil (4) 3.43 .t .o. COMPANIES WAS LISTED ON THE HONG KONG Thailand (14) 3.32 international and local stock markets to raise Thailand (I 4) 3,32 ~~~~~~STOCK EXCHANGE. Emergingglobal(16) 3.21 $3.04 billion. Investment banks, pension Mexico (5) 2.93 ecag Austna/Hungary (4) 0.50 funds, and mutual funds from the United On June 19, stock exchange officials from Korea, Rep. of (16) 0.11 States, the United Kingdom, France, and the China and Hong Kong signed a cooperation Emerging Europe (6) -1 .26 India (4) -1.62 Netherlands were reported to be among the agreement aimed at enhancing exchange of Asia(14) -1.68 top 20 buyers. The reported distribution information, investorprotection, and compli- Philippines (4) -1286 across markets was 77.2 million shares in the ance across the various exchanges. The Memo- Portugal(S) -3.14 United States, 38.5 million in Argentina, and randum of Regulatory Cooperation allows Taiwan (China) (5) -4.12 44.3 million in European and other markets. Chinese companies to float H shares, which Malaysia/Singapore (6) -4.64 China (9) -5.50 Elsewhere, equity issuance was low. Radio are available to non-Chinese investors, on the Note: Figures in parentheses are Centro, a Mexican broadcasting company, Hong Kong exchange. number of funds in category. Average retums forJune. raised $52.2 million from a public offering of Tsingtao Brewery, the first of nine Chinese Source: Lipper Intemational Closed- End Funds Service. ADSs and 42.9 million in new pesos (equiva- companies being prepared for privatization, 112 FINANCIAL FLOWS QUARTERLY EQUITY PORTFOLIO AND FOREIGN DIRECT INVESTMENT was sold through an initial public offeringOn n EMERGING-MARKET FUNDS ARE BECOMING the Hong Kong stock exchange. The global MORE POPULAR AS INVESTORS, ESPECIALLY offering was for 317.6 million H shares SMALLER ONES, SEEK TO PARTICIPATE IN TABLE 6 (HK$889 million). The issue was oversub- THE POTENTIALLY LARGE GAINS ON DISCOUNTS AND scribed. EMERGING-MARKET DEBT. PREMIUMS (Percentage difference between net * As INVESTORS SEEK TO DIVERSIFY InJune, Oppenheimer launched a $285 mil- asset value and share price) lion (mainly Latin American) emerging-mar- Larget premiums ket fund. It will invest in sovereign debt, in- Korea Fund 31.58 EMERGING-MARKET PRICE RISES, cluding Brady bonds and, possibly, private Templeton Emerging Mkts 20.99 DERIVATIVES ON SOVEREIGN DEBT ARE p AsiaPacificFund 20.60 sector debt instruments. A new unit trust ($6 india Growth 20.19 FLOURISHING. million, launched by Van Kmpen Merfitt) is Indonesia Fund 19.04 Emerging-market derivatives have been the first trust holding only Brady bonds; it Largest discounts Hungarian Investment Co. -46.72 boosted by heavy demand from institutional allows small investors to participate in the Genesis Chile Fund -33.23 and other investors who are increasingly at- emerging market for sovereign debt. The Thai Development Capital -28.19 GT Chile Growth -26.64 tracted to these new markets. trust holds Brady bonds from Argentina, Thai Prime Fund -26.57 In May, Merrill Lynch issued the first war- Mexico, Nigeria, the Philippines, Uruguay, Note: As of June 30, 1993. rants on a basket of developing-country loans. and Venezuela. End FundsCService. The warrants are attached to loans of five countries that have not yet concluded com- mercial bank debt reduction operations- FOREIGN DIRECT INVEST- Bulgaria, Ecuador, Panama, Peru, and Poland. MENT AND PR IVATIZAT ION The issue price of each warrant is at a 3.625 percent premium over par, so that even small U THE ARGENTINE GOVERNMENT investors (with less than $10,000) can partici- pate. Investors hope to benefit from a strengthening of the value of the debt on com- pletion of a debt rescheduling. The warrants SUBSTANTIAL AMOUNTS OF STATE-OWNED are also attractive to investorswho are prohib- ASSETS. ited from holding value-impaired loans on In the country's largest privatization to date, their books. Chemical Bank is offering call Argentinasold45percentofYPF,raising$3.04 warrants (one-year cash-settled call warrants) billion. The government, trying to discourage on proposed Brazilian par bonds, which have speculators, aimed the issue at investors who yet to be issued. wanted to buy and hold these shares. Argen- Emerging-market borrowers, especially tine buyers were restricted to investments of Latin American borrowers, are innovative. In $10,000 each, and there were incentives to June, the Mexican development bank, local investors to carry stock for up to two Nafinsa, issued the first Latin collared floating- years. The government is keen to avoid a re- rate note (FRN), a $100 million five-year note peat of the Telecom/Telefonica sale in 1992, at 0.25 percent over six-month LIBOR, with a when domestic investors were given low-inter- maximum coupon of 10 percent and a mini- est loans to buy shares, a move which artifi- mum of 6.625 percent. cially boosted the opening price. The govern- Petroleos Mexicanos, one of the most in- ment is also hoping to exchange 26 percent novative Mexican public sector borrowers, of YPF's equity for 10-year domestic bonds raised $366 million in May through its first held by more than a million Argentine pen- securitized issue. The issue, which was pri- sioners in lieu of retirement benefits. vatelyplacedwithinstitutionalinvestorsinthe Other countries are planning to sell off United States, is backed by future oil export large amounts of state-owned assets. Many revenues. want foreign investors to participate. Peru THE WORLD BANK 13 EQUITY PORTFOLIO AND FOREIGN DIRECT INVESTMENT plans to raise almost $2 billion this year foreign investment in the local stock market through privatization. Up for sale are the'state- and eased restrictions on remittance of prof- owned telephone company, banks, mining its in an effort to attract foreign capital. And companies, and fishmeal plants belonging to the Russian government has committed $100 the state fishing company. Investors from million to set up an insurance company to Chile, China, and Colombia have reportedly offer foreign investors protection against po- shown interest in buying these assets. litical risk. To date, Russia has privatized almost half of its enterprises in the service industry and * A NEW VENTURE CAPITAL FUND WILL HELP DEVELOP PRIVATE SECTOR PARTICIPATION IN the commercial sector. It is now planning to speed up privatization with asset sales in oilL and natural gas, as well as the defense indus- GENERATION AND INFRASTRUCTURE try. Croatia has placed 14 public enterprises DEVELOPMENT. for sale and will allow foreign investors to Injune, the Scudder Latin America Trust for participate. Independent Power was set up to provide risk capital for private sector power projects in Latin America and the Caribbean. It is the first FOREIGN INVESTMENT. OTHER COUNTRIES emerging-market fund to specialize in private EASE RESTRICTIONS TO ATTRACT FDI. electric power projects and will have initial Foreign companies reportedly invested $3 capital of $75 million. The IFC, CMS Energy billion in China in the first quarter of 1993- Corporation, and NRG Energy INC will each an increase of 167 percent on the first three subscribe $25 million. The fund comes at a months of 1992. For the whole of 1992, for- time when governments in that region (and eign companies shelled out an estimated $11.6 in other developing countries) are placing billion, although that includes investments by great emphasis on private sector participation Hong Kong subsidiaries of Chinese compa- in power generation and infrastructure devel- nies (a route taken for tax reasons). Apart opment. from Hong Kong, the leading sources of in- vestmentwere in Taiwan (China), the United States, andJapan. DIRECT INVESTMENT TO DEVELOPING The Indian government has allowed eight COUNTRIES HAS DECLINED. foreign companies to directly invest Rs 6.17 After peaking in 1989,Japanese FDI to devel- billion in ventures (joint or wholly owned) oping (indeed, all) countries has steadily de- rangingfromcarmanufacturingtosoftdrinks clined. Despite the overall decline, FDI in and from asset management to steel produc- some countries has increased-in China, for tion. Zimbabwe lifted a long-standing ban on example, where it has expanded rapidly, from TABLE 7 0.6 percent of totalJapanese outward FDI in JAPANESE FDI fiscal 1990 to 2.5 percent in the first half of (Billions of dollar-s and percentage of total) fiscal 1992. 1989 1990 1991 1992(1st half Liberalization policies in India have also Region $ % $ % $ % $ % boostedJapanese FDI-to $37 million in the Latin America and Caribbean 5.2 7.8 3.6 6.4 3.3 8.0 1.3 7. first half of fiscal 1992, nearly the same as FDI Asia 8.2 2.2 7,1 12.4 5.9 14.3 3.0 17.3 Middle East 0.1 0.1 0.0 0.0 0.1 0.2 0.1 0.6 for the whole of the previous two years. Eastem Europe and FSU 0.7 1.0 0.6 0.4 0.7 1 8 0.1 0.6 Progress in market reforms has increased for- Total 14.4 21.4 11.5 20.2 10.3 25.1 4.6 26.4 eign investment in some Eastern European Memo: countries, especially Hungarywhere EDI rose Total FDI 67.5 56.9 41.6 17.4 more than fivefold to almost $200 million in Source: Japan Ministry of Finance. fiscal 1991. 14 FINANCIAL FLOWS QUARTERLY SECONDARY MARKETS FOR DEVELOPING-COUNTRY DEBT * HIGH RETURNS IN THE BRADY BOND CHART 2 MARKET ATTRACT INVESTORS AND BOOST SECONDARY MARKET PRICES LIQUIDITY. Percentage of face value The Brady bond market grew from less than $50 billion at the end of 1990 to $94 billion in June 1993aseightcountriessuccessfullycom- 60. . pleted Brady-type debt restructuring agree- Brady countries ments. 50 i i ._i_i The market's investor base is widening. More than $81 billion (or 86 percent) of the market is highly liquid bonds, dominated by 40 A_A] _ _j_i Mexican and Argentine bonds, with market mij shares of 37 percent and 28 percent, respec- 30 tively. Brazil, which is expecting to conclude a Brady-type deal by the end of November, SlMICs* currently accounts for about lOpercent of the 20 i i i market. Trading volumes more than doubled between 1991 and 1992, and the average trade is $5 million. Bid-offer spreads have narrowed ! . . _ - i in this market to 20-25 bp, half those at the Sverely indebted middle-incone countries end of 1990. Liquid bondsin the Bradymarkethave,on percent in 1991, less than 7 percent in 1992, average, outperformed the U.S. stock and and more than 17 percent in the first six bond markets. Returns on Morgan's and months of 1993. This market is rathervolatile, Salomon'sBradybondindexeswereabout40 but historically less so than the U.S. stock market. TABLE 8 BRADY MARKET LIQUIDITY Secondary market debt prices have been (US$ millions) pushed up by declining long bond yields in Par outstanding the United States, as well as industrial-coun- Totala Active try institutional investors seeking portfolio Benchmark issues (LI b) diversification. Anticipation of Brady-style Argentina Par bonds 12,672 12,492 Argentina FRBsc 9,811 9,811 debt reduction operations has also contrib- Brazil IDU bonds 7,105 7,105 uted to the higher prices. Concerns over Mexico 2008 Aztec bonds 2,274 2,274 Mexico Discount bonds 8,496 8,218 NAFTA have been a damper, however, espe- Mexico Par bonds 20,456 15,720 Nigeria Par bonds 2,051 2,051 cially on Mexican debt prices. Mexican pars Venezuela DCBs 5,969 5,353 gained only about 2 cents on the dollar in the Venezuela Par bonds 7,362 6,694 second quarter, closing at 71 7/8. Actively traded (L2b) Favorable political developments in Brazil Argentina Discount bonds 4,315 4,137 p d Brazil Exit bonds 1,018 1,018 and Venezuela boosted investors' confidence Philippines DCBs 697 691 and rallied markets. Brazil's IDU bonds rose Philippines FLIRBs 757 627 Philippines New money bonds 862 862 more than 9 cents to 73 1/2, and Venezuelan Philippines Par bonds 1,894 1,741 Venezuela FLIRBs 2,990 2,609 pars mcreased 7 cents to 67 3/8. Sometrnes traded and In early May, Dominican Republic debt illiquid issues (L3 and Lb) 4,996 0 jumped 10 cents to 42 1/2 cents to the dollar, Total 93,725 81,403 following the agreement (in principle) with a. Currency issues included used May 28, 1993, exchange rates, commercial bank creditors. Debt of other b. The range for liquidity ratings is from L I, most liquid, to L4, illiquid. countries that could get Bradymsyle debt treat- c. Placed into escrow April 7 and currently awaiting delivery. Source: J.P. Morgan. ment, such as Ecuador, Peru, and Poland, has THE WORLD BANK 15 SECONDARY MARKETS FOR DEVELOPING-COUNTRY DEBT also nudged higher. Despite a no-confidence Elsewhere, Moroccan debt prices have risen vote for the Hanna Suchoka government in rapidly (by more than 12 cents) on better the Sejm (parliament), Polish debt prices economic prospects and a privatization pro- continued to climb on investor confidence in gram that some speculators think will allow continued economic reforms and a debt deal. swapping debt for equity. OFFICIAL FLOWS: BILATERAL AND MULTILATERAL * RUSSIA RECEIVES $1.5 BILLION UNDER higher, at $18 billion. Lending to all regions THE I MF'S NEW SYSTEM IC increased, with the exception ofAfrica, where TRANSFORMATION FACILITY. administrative factors delayed lending activ- Russia has been granted $1.5 billion by the ity. Europe and Central Asia saw the largest IMF, the first tranche of a $3 billion STF to increase in new commitments (from $2.1 bil- support economic and financial reform. The lion to $3.8 billion). Latin America and the newly established STF is a temporary financ- Caribbean received $6.2 billion, South Asia ing facility that will be in effect through 1994. $3.4 billion, and the Middle East and North Its purpose is to assist member countries fac- Africa$1.9 billion. New lending commitments ing disruption of traditional trading relations in EastAsia and the Pacific ($5.6 billion) were and payments arrangements because of their only marginally higher than a year ago. shift to market-based trading. It is designed principally to help states of the former Soviet $ Union and members of the former Council of Mutual Economic Assistance (CMEA). At their annual economic summit in Tokyo To provide financing under this facility Uuly 7-8), leaders of the G-7 proposed a $3 (outside the context of upper credit tranche billion aid package to develop private indus- or an ESAF arrangement), the IMF requires a try in Russia. The fund includes $1.5 billion country to undertake suitable policy actions in loans from multilateral institutions, $1 bil- as soon as possible, including stabilizing the lion in loans (export credits) from G-7 coun- economy. The member country needs to tries for imports of equipment, and $500 mil- implement an appropriate quarterly financial lion in outright grants. program before the second tranche is made ~~~ . ;~~~~~~~ THE IFC APPROVES $7 1.5 MILLION FOR available. Disbursements are made in two TWO RUSSIAN OIL AND GAS PROJECTS. equal purchases over 12 months-the first at the outset and the second, typically, at six Russia, which became a member of the IFC in months. Access is limited to 50 percent of April, will get $71.5 million from the IFC for quota, and the terms are four and a half to 10 two oil and gas projects. A $60 million loan years at a rate similar to that charged for other goes to Polar Lights Company, a U.S.-Russian uses of the IMF's general resources. jointventure company, to develop the Ardalin oil field. The project will also receive $50 mil- lion from the U.S. Overseas Private Investment TO A RECORD $23.7 BILLION. Corporation (OPIC) and$90 million from the At $23.7 billion, World Bank lending commit- European Bank for Reconstruction and De- ments for the year endingJune 30, 1993,were velopment. The IFC has also approved $10 nearly 10 percent higher than for the previ- million in loans and $1.5 million in "quasi- ous year. New lending by the IBRD was $16.9 equity" for Vasyugan ServicesJoint Enterprise. billion; the remainder ($6.8 billion) sup- The money goes toward a $37 million project ported IDA-sponsored projects. Disburse- to increase oil and gas output in the Tomsk ments by the IBRD and the IDA were also region of western Siberia. 16 FINANCIAL FLOWS QUARTERLY OFFICIAL FLOWS: BILATERAL AND MULTILATERAL BILATERAL ODA AND EXPORT bilateral assistance, was at a record high, and CREDITS aid from Taiwan (China), although below 1991, was large. * AT $60.8 BILLION, ODA IN 1992 CONTINUED ITS SLOW UPWARD TREND OF * IN FISCAL 1992, JAPAN'S EXIM BANK PREVIOUS YEARS. COMMITMENTS REACHED A RECORD HIGH OF The OECD reports that official development '1,914 BILLION. assistancefrom DevelopmentAssistanceCom- The Export-Import Bank of Japan recorded mittee (DAC) countries and multilateral in- an all-time high in its lending activities in fis- stitutions rose by $4.1 billion to $60.8 billion cal 1992 (ending March 1993). Its 552 com- in 1992, a continuing (if slow) upward trend. mitments amounting to Y1,914 billion ($16.5 Bilateral flows were unchanged on 1991, at billion) represent an increase of 29 percent $41.3 billion, as flows shifted from bilateral aid over the previous fiscal year. Disbursements to multilateral agencies. fell by 10 percent to Y1,523 billion, however. DAC members' average share of GNP Asia is still the major recipient of EXIMJapan devoted to aid was 0.33 percent, unchanged funds, accounting for 38 percent of total com- on the past two years. For individual donor mitments, up from 32 percent in fiscal 1991. countries, the highest ratios were more than The share going to Latin America and the Car- 1 percent each for Denmark, Norway, and ibbean also expanded (to 21 percent of the Sweden. fiscal 1992 total), due in part to increased sup- In volume terms, the United States ($11.7 portunder the Brady Initiative forArgentina. billion, including debt forgiveness) andJapan Africa's share, however, fell from 7 to 5 per- ($11.1 billion) are still the biggest donors. cent. Of all EXIM financing, overseas direct Japanese ODA, as well as its ratio of ODA to investmentloanswere still the lion's share (39 GNP, is expected to increase under the new percent), but there was a 130 percent growth Funds for Development Initiative, which will in untied direct loans, which included large replace the now expired Expanded Capital loans to China, Argentina, and Eastern Euro- Recycling Program. pean countries (Hungary, Romania, and the In 1992, aid flows from non-OECD donors Czech Republic). In the second quarter of fell to their lowest levels in many years. Rus- 1993, EXIMJapan also approved $213.1 mil- sian aid is believed to be well down on earlier lion in untied loans to Estonia, Fiji, Hungary, periods. By contrast, aid from Korea, mostly Lithuania, and Tunisia. DEBT RELIEF UPDATE OFF IC IAL CREDITORS scheduled arrears under conventional terms. The Paris Club also rescheduled debt of the * PARIS CLUB CREDITORS GIVE BENIN, Russian Federation on April 2. BURKINA FASO, AND GUYANA ENHANCED Under Enhanced Toronto Terms, there is TORONTO~ ~ ~ ~ ~ ~ ~Une TERMS,e ANDnt PERUs GETSe HOUTO TORONTO TERMS, AND PERU GETS HOUSTON a common long maturity for ODA debt, a TERMS. menu for restructuring non-ODA debt, and Five countries signed Paris Club rescheduling goodwill clauses that commit the creditors to agreements in the second quarter of 1993. a second round ofdebt relief and then to "con- Benin, Burkina Faso, and Guyana obtained sider the entire stock of debt" three years af- Enhanced Toronto Terms for severely in- ter signature of the first accord. The agree- debted low-income countries; Peru received ments also provide for swapping eligible debt Houston Terms for severely indebted lower- for local currency obligations (see World Debt middle-income countries; and Costa Rica re- Tables 1992-93, vol. I, p. 77). THE WORLD BANK 17 DEBT RELIEF UPDATE TABLE 9 amounts repayable between September 1996 PARIS CLUB AGREEMENTS, SECOND QUARTER, 1993 and March 2001. Period of relief Costa Rica's agreement covers only arrears Date of Eslmated amount Type of ajn 019.Eiil etcmrsdcm Country agreement Start Months (US$ millions) agreement atJune30,1993.Eligibledebtcomprisedcom- Russian Federation Apr. 2 Jan. 93 12 15,000 10/5b mercial credits and intergovernment loans Peru May 4 Jan. 93 39 1,884 Houston' contracted beforeJuly 1, 1982, and debt due Guyana May 6 Dec. 88 1 7 39 ETTI Burkina Faso May 7 Apr. 93 33 36 ETTd under the Agreed Minutes of 1985 and 1989, Benin June 27 Aug. 93 29 24.8' ETTd as well as half the debt service due under the Costa Rica June 22 Arrears as of June 31 56.8' Other' 1991 agreement. The repayment terms are six a. Consolidation period comes into effect in stages. b. Repayment terms: 1 0-year maturity, including five-year grace period. years maturity, including two years grace. c. Special terms for severely indebted lower-middle-income countries. d. ETT: Enhanced Toronto Terms. Special terms for severely indebted low-income countries. e. Estimate. f. Repayment terms on arrears only: six-year maturity, including two-year grace period. COMMERCIAL CR EDITORS The Benin, Burkina Faso, and Guyana U IN THE SECOND QUARTER, THE DomINICAN agreements restructure debt in two or three REPUBLICECND QUAN THE SOME stages. The first stage of five to nine months REPUBLIC AND JORDAN MADE SOME . . . ~~HEADWAY IN RESTRUCTURING COMMERCIAL coincides with the remaining period of a cur- rent IMF Enhanced Structural Adjustment BANK DEBT, AGREEING ON A MENU OF Facility (ESAF). The terms will continue au- OPTIONS WITH THE BANK ADVISORY tomatically for 1994 (for all three countries) COMMITTEES. and for 1995 (for Benin and Burkina Faso In May, the Dominican Republic reached only) if an IMF ESAF remains in effect and if an agreement outlining general terms for debt the terms of the Paris Club agreement are fully reduction and a debt exchange covering an implemented. estimated $775 million of debt. Options in- The Benin agreement is the first second- clude: round Enhanced Toronto Terms agreement. Buyback. The Dominican Republic will buy The creditor countries agree in principle to back principal and interest at 25 cents on the hold a meeting at the end of the consolida- dollar. tion period (December31, 1995) todealwith Discount bonds. These collateralized bonds the rest of Benin's debt if various conditions have a 30-year bullet payment and will be ex- are met. changed at a 35 percent discount. Interestwill Peru received Houston Terms. This agree- be LIBOR plus 13/16. ment (May 4) has an unusually long consoli- Interest reduction bonds. These have an 18-year dation period of 39 months, which parallels maturitywith nine years grace. Interestwill be an IMF Extended Fund Facility (EFF). Like 3 percent in years 1 and 2; 3.5 percent in years the multiyear arrangements with severely in- 3 and 4; 4 percent in years 5 and 6; and LIBOR debted low-income countries, the restructur- plus 13/16 thereafter. ing is in tranches, each corresponding to an Past-due-interest bonds. These bonds have a 15- annual program under the EFF. Repayment year maturitywith three years grace and inter- termsare standard. ODAdebtwillbe paid over est at LIBOR plus 13/16. 20 years with 10 1/2 years grace, and other In earlyJuly,Jordan reached an agreement debt over 15 years with 8 1/2 years grace. outlining general terms for restructuring com- There are swap provisions for debt outstand- mercial bank debt of about $900 million. The ing on September 30,1991-up to 10 percent debt will be swapped for par bonds and dis- or $20 million of eligible non-ODA debt count bonds, with a buyback option. Some (whichever is higher), but no limits for ODA interest arrears could be replaced with bonds. debt. Interest obligations were reduced by 50 Par bonds. These bonds will have a 30-year percent for 1993-94, with the postponed bullet payment. Interest will be at 4 percent 18 FINANCIAL FLOWS QUARTERLY DEBT RELIEF UPDATE for years I to 4; 5 percent in year 5; TABLE 10 5.5percentinyear6;and6percent OPERATIONS COMPLETED UNDER THE DEBT REDUCTION FACILITY FOR IDA-ONLY COUNTRIES thereafter. (US$ millions) Discount bonds. These bonds will Niger Mozambique Guyana Uganda Bolivia have a 30-year bullet payment at a Facility grant date Dec. 20, 1990 June I 1, 1991 Oct. 20, 1992 Dec. 2, 1992 Mar. 17, 1993 35percentdiscount; interestwill be Compleion date Mar. 8,1991 Dec. 27, 1991 Nov. 24, 1992 Feb. 26,1993 May 19, 1993 LIBOR plus 13/16. (Both the dis- Principal extinguished' 107.00 123.75 69.16 153.00 170.00 count and the par bonds are to be (percent eligble) 99.00 64.00 100.00 82.00 94.00 collateralized by zero-coupon U.S. Pnce (US$) 0.18 0.10 0.14 0.12 0.16 bonds, with six-month rolling inter- Amount disbursed Facility est rate guarantees.) IBRD resources 8.42 5.91 10.00 9.93 9.81 Buybacks. The price for buying back Bilateral contibutons 2.53 7.50 - 3.34 10.55 Subtotal 10.95 13.41 10.00 13.27 20.36 principal and interest will be deter- Direct contnbution 8.31 - - 5.13 6.66 mined later. Total 19.26 13.41 10.00 18.40 27.02 Interest-arrears bonds. These bonds Technical assistance grantsb have a 12-year maturity with three IBRD resources - - - 0.21 - Bilateral contrbutions - - 0.23 - years grace, and interest is at LIBOR ' ~~~~~Total -- 0.23 0.21- plus 13/16. a. In addition, interest was canceled: Mozambique (US$80.3 million), Guyana (US$23.5 million), and Uganda (US$27.0 million). Brazil's bank creditors have ex- b. Technical assistance grants for legal and financial advisors. tended the completion date of the DDSR operation to November 30. Banks were der preparation as ofJune 30, 1993, will ex- requested to reselect between par and dis- haust existing resources, but the executive count bonds to meet a distribution maximum directors of the World Bank approved an ex- of 40 percent of eligible debt to be allocated tension of the facility from July 31, 1994, to to par bonds and a minimum of 35 percent to July 31, 1995. Replenishment of the facility is discount bonds. Banks are also expected to al- under consideration. locate a maximum of 4.375 percent to the debt Greater use of the facility is due largely to conversion bond/new money option. changes introduced in March 1992, when the Use of the Debt Reduction Facility for IDA- facility was extended toJuly 31, 1994. One was only countries has accelerated. Only two op- to provide grants for financing legal and fi- erations were completed between the incep- nancial advisory services necessary for prepar- tion of the facility (August 1, 1989) and De- ing buyback proposals. The other was to fi- cember 1991, but three were finalized in fis- nance buybacks of short-term debt, including cal 1993-Bolivia, Guyana, and Uganda. Un- uninsured suppliers and trade credits. This der preparation are those with Albania, Nica- was particularly significant for Uganda and ragua, Sao Tome and Principe, Sierra Leone, will also be important for the five operations and Zambia. Operations completed and un- being prepared. COMMERCIAL BANK PROVISIONING AND CAPITAL ADEQUACY * U.S. BANKS REPORT BIG INCREASES IN increase over the previous quarter. The return PROFITS, BUT NONPERFORMING LOANS HIT on equity was also higher, at 17.2 percent. The JAPANESE BANKS. share of nonperforming assets fell and, at 3.3 Wide interest margins and improving credit percent, was almost a full percentage point quality boosted first-quarter earnings of U.S. below the level a year ago. Net interest mar- banks. The return on assets of the nine money gins were slightly lower, but still large at 3.28 center banks was 1.05 percent, a 36 percent percent. The ratio of reserves to nonper- THE WORLD BANK 19 COMMERCIAL BANK PROVISIONING AND CAPITAL ADEQUACY TABLE 11 forming assets (at 52.5 percent) indicates suf- underreport exposure to bad debt. For in- RISK-WEIGHTED ficient provisioning by the banks against bad stance, nonperforming loan figures do not CAPITAL RATIOS (percent) debt. include restructured loans because they are Tier I Total The strong underlying trends continued in not classified as problem loans by Japanese Britain (z) the second quarter, and major U.S. banks are banks. Barclays 5.5 9.1 Lloyds 6.5 10.5 expected to report big gains, despite weak All 11 city banks met the BIS capital ad- Nat West 5.2 9.8 loan demand. One concern, however, is how equacy ratio of 8 percent by the end-March France (Ffr) to attract consumer deposits (CDs), which, 1993 deadline, with capital/asset ratios rang- BNP N/A 8.0 over the past two years, have switched to the ingfrom8.96percentforSakuraBankto9.61 Credi Lyonnais NA 8.4 stock and bond mutual funds in search of percent for the Bank of Tokyo. ButwithJapa- Socit6 G6n6rale 4.4 8.0 higher yields. nese banks slow to write off bad loans, they are Gerrnany (DM) The profits ofJapan 's major banks fell for unlikely to substantially increase foreign ex- Deutsche 5.4 10.5 the fourth consecutive year. The unconsoli- posure. Dresdner 5.9 9.1 dated net profits of the 11 city (major com- In the year ending March 1993, pretax Jopan (Y) mercial) banks plunged 43 percent in the year profits fell 44.6 percent forJapan's three long- Dai-lchi Kangyo 4.9 9.4 ending March 1993, although core operating term credit banks and 26.7 percent for its Bank of Tokyo 5.0 9.6 Sakura 4.5 9.0 profits were 31 percent higher because of seven trust banks. The operating profits of all Sumitomo 5.3 9.4 lower funding costs. Nonperforming loans these banks were up sharply, as lower interest United Sttes (US$) amounted to Y8.43 trillion ($78 billion), of rates allowed the banks to widen loan spreads, BankersTrustNY 7.7 13.6 which Y1.38 trillion was to borrowers now in although bad loans continued to increase. Citicorp 5.2 10.0 J.P. Morgan 8.2 12.0 bankruptcy. Banks increased their loan loss Even so, the trust and long-term credit banks Note: The numbers for British, provisions by an average of 70 percent. Bad also met the BIS capital adequacy ratio (8 French anrd German banks are as of December 1992. The numbers loans written off increased greatly by 478 per- percent). forjapanese and U.S. banks are as cros.1J 1 1 ' of March 1993. cent to Y172.8 billion, and sales to the Co- The performance of European banks has 199rce: Salomon Brothers, Jul operative Credit Purchasing Company, set up been mixed. While German banks, especially by banks in January 1993 to purchase bad the large ones, have strong balance sheets, loans, resulted in a further Y153.8 billion in several major banks in the United Kingdom write-offs. and France have seen a deterioration in asset Japan's banks have, for the first time, pub- quality. Scandinavian banks have been seri- licly disclosed details on nonperforming loans. ously hurt by the collapse of the local real Even so, some analysts have argued that the estate market and weak economic activity. figures, which range from 1.58 percent to 4.8 Many of these banks are struggling with large percent of all loans outstanding, substantially loan losses. TABLE 12 JAPANESE COMMERCIAL BANK LENDING TO FOREIGN SOVEREIGN BORROWERS (US$ millions and percentage of total) 1988 1989 1990 1991 1992 Region $ % $ % $ % $ % $ % Asia 23,815 (15.7) 24,070 (16.0) 21,732 (17.4) 24,196 (19.3) 20,903 (17.9) Middle East 596 (0.4) 799 (0.5) 734 (0.6) 1,776 (1.4) 2,440 (2.1) Eastem Europe 15,220 (10.0) 15,483 (10.3) 11,357 (9.1) 9.273 (7.4) 8,488 (7.3) Afitca 3,876 (2.6) 3,504 (2.3) 2,885 (2.3) 2,606 (2.1) 2,276 (2.0) Latin America and theCaribbean 35,020 (23.1) 33,198 (22.1) 18,779 (15.1) 17,791 (14.2) 16,929 (14.5) Total 78,527 (51.8) 77,054 (51.2) 55,487 (44.5) 55,642 (44.4) 51,036 (43.8) Memo: Total outstanding commer- cial bank lencding to foreign sovereign borrowers 151,472 (48.2) 150,268 (48.8) 124,574 (55.5) 125,251 (55.6) 116,709 (56.2) Note: As of the end of each year. Source: Japan Ministry of Finance. 20 FINANCIAL FLOWS QUARTERLY FINANCIAL BRIEF PUTTING DERIVATIVES I N and exchange rates were also included. Early THEIR PLACE on, trading in derivatives was only on orga- nized exchanges (futures and options). Since * THE USE OF FINANCIAL DERIVATIVES BY the early 1980s, however, there has also been DEVELOPING-COUNTRY BORROWERS IS ON a market among financial intermediaries- THE INCREASE AND NOT ONLY AS RISK the over-the-counter (OTC) market. The first MANAGEMENT TOOLS. THEY ALSO FACILITATE (publicized) transaction in this market was a MARKET ACCESS THROUGH CREDIT World Bank currency swap. The OTC market ENHANCEMENT. has since expanded rapidly and trading (by In recent years, world markets in financial dollar value) exceeds that on exchanges. derivatives (futures, options, and the like) The OTC market is innovative, tailoring have mushroomed. According to the OECD, terms to the needs of final users. Conse- the notional value of exchange-traded deriva- quently, there is an almost infinite variety of tives rose from $588 billion at end-i 986 to $4.8 instruments-swaps, swaptions, collars, re- trillion at end-1992. Trading volumes nearly verse floaters, floors, caps, average options, doubled to 454 million contracts, with U.S. knocked-out options, to name a few. More markets accounting for more than 55 percent recently, the OTC market in commodity de- andJapan about 12 percent. Over-the-counter rivatives has developed. This provides valuable markets have exploded, with amounts out- risk reduction to developing countries with standing climbing from an estimated $500 large commodity price exposures. billion at end-1986 to $4.4 trillion at end-1991; For all developing-country borrowers, de- Even these figures (says the U.S. Federal Re- rivatives can be useful risk management tools. serve) may underestimate the notionalvalues Many such borrowers are more exposed to in both markets. external risks (for example, foreign exchange Developing countries have shared in the rate, interest rate, and price shocks) than widespread growth of derivatives. In 1989, $1.6 industrial-country borrowers. Moreover, using billion raised on international capital markets derivatives for risk management may also by developing-country borrowers incorpo- lower the risks for the lenders, thus facilitat- rated some risk management. By 1991, this ing market access. had climbed to $5.9 billion, and although it Derivatives can also enhance credit from fell in 1992, it was an estimated $4 billion in the lenders' viewpoint. Take the case of put the first half of 1993. The term "derivative" covers a wide range CHART I of financial instruments. Originallylimited to PUT OPTIONS AND OTHER DERIVATIVES IN BOND ISSUES futures and options, derivatives now include Percentage of total bond issues swaps, swaptions, warrants, convertibility op- 30 A tions, and other sophisticated financial instru- ments. The common feature of all derivatives 25--1 is that these instruments are indexed to (or derived from) the prices of other underlying 20--- o assets. Options, for example, can be indexed to the price of a stock or to interest rates. I S to/ In the early 1970s, the underlying assets were restricted to stock and commodity prices. 10 In response to the breakdown of the Bretton Other derivatives Woods agreement on exchange rates (and thus higher volatility in interest and exchange rates in the mid to late 1970s), interest rates ___ ___a___________ THE WORLD BANK 21 FINANCIAL BRIEF CHART 2 standing) have entered international markets, PUT OPTIONS AND OTHER DERIVATIVES IN BOND ISSUES AND and the use of derivatives forcreditenhance- LOAN SYNDICATIONS COMBINED Percentage oftotal bonds and loans ment has increased sharply. This is clearly demonstrated in the case of Latin American Total derivatives / borrowers, who reentered international capi- o--4: /tal markets in the early 1990s. For example, when Mexican companies returned to world 8 / bond markets in 1990 and 1991, some offered . / Put optio on /put options at one to three years. When Ar- 6 gentine and Brazilian borrowers returned in Other derivatives ~ 1991, they also offered puts to investors. 4--: The use of put options (the most com- monly used enhancement derivative) reached 2 * apeakin 1991 atabout6 percent of all bonds and syndicated loans. Put options are more Ii M ifl X il Ei 111 common for bond issues than for loan syndi- cations, in part because bond markets are options. These allow lenders to call the loan more credit-sensitive. The share of bondswith at certain times before final maturity. In a Eu- put options was more than 17 percent in 1990- ropean option, the put can be exercised only 91, but only 3 percent for syndicated loans. on the specified option date, while an Ameri- The use of derivatives as an enhancement can put option can be exercised at any time tool has begun to decline as emerging-market before the option expires. Thus, a put option countries have improved their credit standing is a form of insurance for the lender against through anti-inflation initiatives and market- possible adverse changes in the borrower's oriented policies. Indeed, some have been credit standing. given investment-grade (or other) ratings by In the late 1980s, the impetus behind in- Standard & Poor's, Moody's, or other rating creased use of derivatives was the need for risk agencies. Moreover, especially for bonds, in- management. The few developing countries vestors' familiarity with individual borrowers with access to international markets had no who regularlymake newissues has meantless reason to include derivatives to enhance reliance on creditenhancements. In 1992and credit. The worldwide growth in derivatives in the first half of 1993, the share of put options the 1980s was also reflected in wider use of in total borrowings by developing countries currencyand interestoptions and swapsbyde- fell to about 5 percent, mostly because of a veloping countries. sharp decline in the use of such options in Since then, other developing-country bor- bond offerings. For syndicated loans, the share rowers (with a generally lower initial credit of put options averaged about 3 percent 22 FINANCIAL FLOWS QUARTERLY STATISTICAL APPENDIX CONTENTS Table 1 External Debt 24 Table 2 Financial Flows (Long-Term) to Low- and Middle-Income Countries 25 Table 3 Debt Owed to Multilateral Institutions 26 Table 4 Bank and Trade-Related Non-Bank Claims 27 Table 5 Commercial Bank Claims on Developing Countries 28 Table 6 Maturity Distribution of Bank Claims on Developing Countries 29 Table 7a U.S. Commercial Bank Claims on Developing Countries 30 Table 7b Claims on Developing Countries of Banks in the United States 31 Table 8a U.K. Commercial Bank Claims on Developing Countries 32 Table 8b Developing Country Claims of Banks in the United Kingdom 33 Table 9a German Commercial Bank Claims on Developing Countries 34 Table 9b Developing Country Claims of Banks in Germany 35 Table 1Oa French Commercial Bank Claims on Developing Countries 36 Table 10b Developing Country Claims of Banks in France 37 Table 11 Swiss Commercial Bank Claims on Developing Countries 38 Table 12 Italian Commercial Bank Claims on Developing Countries 39 Table 13 Japanese Commercial Bank Claims on Developing Countries 40 Table 14a Dutch Commercial Bank Claims on Developing Countries 41 Table 14b Claims on Developing Countries of Banks in The Netherlands 42 Table 15a Funds Raised on International Capital Markets 43 Table 15b Loans Raised on International Capital Markets 44 Table 16 Secondary Loan Prices 45 Table 17 Foreign Direct Investment (Net) to Developing Countries 46 Table 18 IMF Financing Arrangements 47 Quarterly Review Groups 48 THE WORLD BANK 23 Table 1 EXTERNAL DEBT (In millions of US$) 1986 1987 1988 1989 1990 1991 1992p/ DRS Reporting Countries 1,089,029 1,230,479 1,225,136 1,253,847 1,345,683 1,420,607 1,465,273 Long-term 915,710 1,043,356 1,029,066 1,036,187 1,102,912 1,161,507 1,189,738 Official 369,282 449,710 452,230 472,176 531,187 578,771 594,612 Private 546,428 593,646 576,836 564,011 571,724 582,736 595,126 Short-term 130 743 144 326 161,013 185 716 208,258 221,117 237 676 IMF Credit 42,575 42,797 35,057 31,943 34,513 37,983 37,859 By Geographtic Region: Africa, South of the Sahara 116,028 142,852 145,779 153,920 172,637 178,073 178,888 East Asia & Pacific 182,922 202,565 204,244 204,816 235,723 268,714 288,952 Europe& Central Asia 174,942 204,719 205,198 219,378 244,680 265,576 283,293 Latin America & the Caribbean 410,442 445,810 427,912 422,690 432,467 440,609 441,959 North Africa & the Middle East 124 713 141,895 145 274 149 261 145,854 146,716 145,808 South Asia 79,980 92,638 96,728 103,783 114,322 120,919 126,372 Memo Item Eastern Europe 102,296 121,090 123,174 136,507 150,396 166,992 180,123 Severely Indebted Middle Income Countries 424,133 476,322 464,759 470,991 492,321 504,302 500,822 Algeria 22,905 25,021 26,745 28,574 29,794 28,636 26,257 Angola 2,826 4,424 5 061 6,767 8,185 8,775 9,175 Argentina 52,450 58,460 58,738 65 027 61,928 65,258 66,541 BoTivia 5,575 5,836 4,901 4,135 4,269 4,075 4,225 Brazil 113,735 123,864 115,726 111,379 116,417 116,514 118,686 Bulgaria 5,264 7,088 9,128 10 213 10,864 12 121 12,182 Congo 3,484 4,291 4,083 4,235 4,832 4,759 4,814 Cote d'Ivoire 11,087 13,554 13,994 15,683 18,079 18,847 19,373 Ecuador 9,334 10,473 10 745 11 317 12,109 12 469 12,337 Jamaica 4,187 4,696 4,532 4,537 4,598 4,456 4,468 Jordan 5,142 6,605 6,720 7,395 8,328 8,641 9,239 Mexico 100,881 109,460 100,781 95,446 97,357 101,737 98,466 Morocco 17,890 20,801 21,054 21,710 23,620 21,219 21 896 Panama 4,898 5 630 6 066 6 318 6,678 6 791 6,452 Peru 14,887 17,490 17,971 18,250 19,429 20,708 21,000 Poland 36,670 42 632 42,131 43,124 49,388 52,481 48,500 Syria 12,918 15,997 16,383 16,881 16,446 16,815 17,211 Severely Indebted Low-Income Countries 140,091 166,071 169,040 173,287 174,260 177,081 173,769 Moderately Indebted Low-Income Countries 127,157 151,066 157,619 167,443 192,618 206,039 219,190 Moderately Indebted Middle-Income Countries 211,234 236,985 237,876 247,391 268,759 281,440 301,847 Other Selected Countries 418,444 470,884 474,481 477,464 515,228 552,905 574,058 Chile 1/ 21,144 21,488 19,593 18,032 19,131 17,902 18,260 China 23,746 35,296 42 362 44,791 52,519 60,802 65,659 Colombia 1/ 15,362 17,008 16,995 16,878 17,241 17 369 16,741 Egypt 3/ 46,338 52,016 52,485 51,498 40,104 40,571 38,142 Hungary 1/ 16,907 19,584 19,603 20,390 21,269 22,914 23,625 India 2/ 48,354 55,825 58,467 63,929 69,138 71,557 75,796 Indonesia 2/ 40,111 49,854 51,546 53,672 67,232 73,629 81,090 Korea 46,724 39,808 35,716 32,796 34,981 40,518 45,485 Malaysia 22 400 23,817 20,188 17,829 18,173 21,445 20,909 Nigeria 23,473 30,656 31,247 31,977 34,557 34,497 30,180 Philippines 1/ 28 207 29,763 28,965 28,375 30,232 31 897 32,252 Thailand 18,505 20 305 21,664 23,432 28,208 35,828 38,715 Turkey 1/ 32 833 40,784 40,805 41,387 49,170 50 252 53,484 Venezuela 1/ 34,340 34,680 34,845 32,478 33,273 33,724 33,720 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. p/ Projection. Source: World Bank Debtor Reporting Systemn. Table 2 FINANCIAL FLOWS (LONG-TERM) TO LOW-AND MIDDLE-INCOME COUNTRIES, 1983-92 (in billions of US$) 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992p/ Aggregate Net Resource Flows (Long-Term) 74.0 66.2 65.6 60.5 62.7 74.1 77.4 96.6 107.6 121.1 Official Development Finance 36.2 37.3 37.3 41.2 40.8 40.1 43.8 60.2 61.3 54.0 Official Grants 11.6 15.0 16.6 19.3 20.5 22.4 23.4 31.3 34.3 30.0 Official Loans (net) 24.6 22.3 20.7 21.9 20.3 17.7 20.4 28.9 27.0 24.0 Bilateral 13.1 9.7 8.6 8.5 7.8 6.2 8.4 13.9 12.9 10.1 Multilateral 11.5 12.6 12.1 13.4 12.5 11.5 12.0 15.0 14.1 13.9 Private Loans (net) 29.2 20.6 17.3 9.4 8.2 14.3 10.3 12.1 11.3 28.8 Commercial Banks 20.1 15.6 7.0 2.0 1.0 8.0 4.8 (2.5) 2.6 9.2 Other Private 9.1 5.0 10.3 7.4 7.2 6.3 5.4 14.6 8.7 19.6 Foreign Direct Investment (FDI) 8.6 8.3 11.0 9.9 13.7 19.7 23.3 24.3 35.0 38.3 1-n Aggregate Net Transfers (Long-Term) 15.8 3.0 (0.9) (3.4) (3.2) (0.5) 7.8 29.2 37.1 50.6 Memorandum Items: Private Grants 2.3 2.6 2.9 3.3 4.0 4.3 4.0 4.9 5.2 5.5 Net Use of IMF Credit 11.1 4.5 (0.2) (2.5) (5.8) (5.5) (2.3) 0.1 3.1 0.3 Real Aggregate Net Resource Flows (Long-Term) (Import Unit Value Index) 66.2 60.7 62.9 60.5 64.9 72.3 76.4 95.2 101.9 111.4 Import Unit Value Index 111.8 109.1 104.3 100.0 96.6 102.5 101.3 101.5 105.6 108.7 Notes & Sources: Country Coverage: 116 low-and middle income countries; as covered in World Debt Tables, 1992-93. Loans: DRS; excludes short-term flows; FDI: IMF, balance of payments figures, which include reinvested profits. Official and private grants; OECD. Aggregate net transfers equals aggregate net resource flows less interest payments (DRS basis) and reinvested and remitted profits (IMF). Aggregate net resource flows excludes use of IMF credit. Import unit value index from IMF International Financial Statistics. p/ Projection. Table 3 DEBT OWED TO MULTILATERAL INSTITUTIONS (In millions of US$) 1985 1986 1987 1988 1989 1990 1991 Claims By Creditors IBRD 50,707 68,345 89,096 84,266 84,719 95,896 100,337 IDA 24,213 28,008 33,305 36 119 39,284 45,009 49,649 IMF 40 302 42 575 42,797 35,057 31,943 34,513 37,983 IDB 12 064 14,809 17 812 18,116 19,185 21,725 22,894 ASDB 5,940 6 736 7,564 8,847 10,329 15,510 18,323 AFDB 1 174 1,579 2,265 2,699 3 525 4,834 6,076 Other 14,413 18,091 22,774 23,327 25,332 27,135 29,734 Total Debt Owed 148,814 180,142 215,614 208,432 214,319 244,622 264,997 Liabilities By Debtor Africa, South of the Sahara 23,375 28,478 35,612 36,029 37,898 43,712 46,981 East Asia & Pacific 23,694 29,232 35,033 33,310 34,316 39,291 42,170 Europe & Central Asia 17 851 21,499 24,893 21,013 19,241 21,737 27,417 Latin America & the Caribbean 45,592 57,267 69,879 67,119 67,839 78,253 79,664 North Africa & the Middle FRst 10.981 13.393 16,518 16.302 17,732 17.826 19.213 South Asia 27,320 30,272 33,679 34,658 37,293 43,802 49,552 Low Income Asia 28,719 33,249 37,797 39,550 43,163 50,635 57,446 Low Income Africa 18,143 22,121 27,568 28,167 30,031 34,738 37,486 Oil Exporters 23 558 31,377 41,233 42,053 46,571 57,080 61,731 Middle Income Oil Importers 80,659 97 748 115,583 104,648 100,824 108,852 113,461 Eastern Europe 9,309 10,854 11,619 9,054 7,271 8,296 13,310 Severely Indebted Middle-Income Countries 39,934 50,620 62,254 59,491 59,435 67,703 70,581 Algeria 582 912 1,207 1,397 2,223 2,755 3,712 Angola 28 34 46 50 53 56 97 Argentina 4,324 5,416 8,082 7,706 7,461 8,090 7,897 Bolivia 806 1 134 1,290 1,500 1 692 1,849 1,963 Brazil 11,977 14,528 16,287 14,746 13,511 13,206 12,305 Bulgaria 420 471 432 521 539 552 1,266 Congo 342 408 516 567 547 577 574 Cote d'lvoire 1,872 2,212 2,858 2,652 2,532 3,127 3,303 Ecuador 1,183 1,894 2,338 2 347 2,289 2,392 2,417 Jamaica 1,443 1,584 1,837 1,575 1,485 1,532 1,583 Jordan 481 626 823 791 885 1,037 1,031 Mexico 8,986 12,237 15,543 15,137 15,843 20,854 22,240 Morocco 3,209 3 803 4,708 4,557 4,759 5,331 5,638 Panama 1,071 1,308 1,427 1,345 1,317 1,293 1,172 Peru 2,045 2,395 2,981 2,853 2,788 2,949 2,604 Poland 635 932 924 749 496 1 032 1,731 Syria 531 727 954 997 1,014 1,069 1,048 Severely Indebted Low-Income Countries 22 720 26,860 32,815 33,048 34,789 37,537 39,405 Moderatly Indebted Low-Income Countries 35,145 40,335 47,775 49,889 53,990 63,358 71,020 Moderately Indebted Middle-Income Countries 24,626 31,075 38,144 37,272 38,883 46,657 51,385 Other Selected Countries 59,510 72,270 85,679 83,223 86,073 98,402 107,033 Chile 1/ 2,620 3,625 4,683 4,713 4 820 5 299 5 273 China 1,324 2,882 4,008 4 766 5,669 6,545 7,527 Colombia I/ 3,409 4,561 5,773 5,613 5,651 6,103 6,158 Egypt 3/ 4,079 4,606 5,560 5,363 5,434 3,868 3,467 Hpungary 1/ 1,392 1,892 2,044 2,314 2,298 2,885 4,601 India21 17,232 19,036 20,611 20,634 21,230 24,407 27,443 Indonesia 2/ 5,352 7,024 10,346 11,346 12,495 14,759 16 120 Korea 6,103 6,862 6,406 4,572 3,851 3,794 3,590 Malaysia 1,312 1,344 1,576 1,472 1,461 1,812 1,942 Niperia 1,431 2,234 3,062 2,849 3,173 3,733 4,010 Philippines 1/ 4,660 5,464 6,279 5,871 6,161 7,187 7,757 Thailand 4,218 4,849 5,404 4,308 3,599 3,722 3,544 Turkey 1/ 6,273 7,793 9,766 9,105 8.673 9.637 10.142 Venezuela I1 105 98 161 297 1,558 4,651 5,459 I/ Also included in ModeratelY Indebted Middle-income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: World Bank Debtor Reporting System. Table 4 BANK AND TRADE-RELATED NON-BANK CLAIMS (in millions of US$) --------------- 1992Q2------ Total Bank Guaran- Trade- 1986 1987 1988 1989 1990 1991 Claims teed Related Claims Non- Bank Claims All Developing Countries 739,719 796,025 774,168 774,066 821,486 845,779 868,986 726,075 104,523 142,911 By Geographic Region Africa, South of the Sahara 66,360 73,869 71,418 69,304 77,294 75,393 75,776 53,098 10,137 22,678 East Asia & Pacific 130,413 141,442 140,123 138,457 167,383 191,478 195,892 177,774 10,261 18,118 Europe & Central Asia 133,630 151,211 147,414 159,746 187,122 190,774 196,181 167,329 32,246 28,852 Latin America & the Caribbean 277,597 284,858 272,355 258,312 238,612 241,016 246,871 212,497 19,415 34,374 North Africa & the Middle East 117,295 126,604 123,153 126 752 128,586 126,183 131,920 96,684 27,708 35,236 South Asia 14,424 18,041 19,705 21,495 22,489 20,935 22,346 18,693 4,756 3,653 Severely Indebted Mliddle-Income Countries */ 295,743 317,311 300,460 291,080 286,585 290,939 293,884 244,150 32,063 49,734 Algeria 19,355 21,158 19,860 20,285 21,014 21,384 20,828 17,970 10,939 2,858 Angola 1,321 1,569 1,665 2,168 2,370 2,668 2,741 1,861 652 880 Argentina 35,482 39,092 38,693 35,787 34,475 35,918 36,598 31,313 1,743 5,285 Bolivia 840 813 716 453 463 513 674 412 44 262 Brazil 88,827 88,802 83,978 77,887 76,167 70,749 73,181 63,129 2,699 10,052 Bulgaria 4,864 6,188 7,703 8,324 9,348 8,903 8,481 7,848 564 633 Congo 1,632 1,743 1,645 1,537 1,724 1,614 1,615 1,048 211 567 Cote d'lvoire 4,048 4,245 4,122 4,186 4,379 4,046 4,019 2,790 250 1,229 Ecuador 5,824 5,745 5,528 5,202 4,773 4,465 4,4 18 3,859 384 559 Jamaica 750 791 807 983 975 737 740 418 139 322 Jordan 2 307 3 011 3,157 3,217 3,657 3 198 3,273 2,582 1 075 691 Mexico 79,289 82 244 75,036 75,507 62,684 72,323 72,900 65,179 9 258 7,721 Morocco 6,797 7,557 7,200 7,201 8,002 8,019 8,010 5,522 1,934 2,488 Panama 17,956 23,233 21,706 20,006 22,855 22,917 22,643 22,476 170 167 Peru 6,366 6,412 6.486 5,967 6,179 6,141 6,047 3,412 377 2,635 Poland 18 556 23,076 20,789 21,044 26,301 26,281 26,738 13,591 1,598 13,147 Syria 1,529 1,632 1,369 1,326 1,219 1,063 978 740 26 238 Severely Indebted Low-Income Countries */ 50,985 58,240 57,129 55,583 57,373 55,263 55,564 33,485 5,984 22,079 Moderately Indebted Low-Income Countries */ 38 308 44 594 45,589 48 828 59,439 61,721 63,811 54 376 8,333 9,435 Moderately Indebted Middle-Income Countries */ 139,097 148 926 147,001 149,112 157,935 155 ,940 160,802 142,292 33,243 18,510 Other Selected Countries 226,096 241,865 240,385 236,512 259,745 277,279 285,466 245,801 28,052 39,665 Chile 1/ 14,603 13,476 11,548 9,880 9,823 8,879 9,650 9,030 591 620 China 15,617 20,649 27 631 26,682 34,430 41,420 40,495 36,927 2,963 3,568 Colombia 1/ 8,466 8,965 9,255 8,841 8,889 7,404 8,308 6,550 1,182 1,758 Egypt 3/ 15,779 18,172 17,642 18,689 14,224 13,251 13,121 5,839 1,751 7,282 Hungary I/ 10,445 12,807 11,815 12,219 12,359 11,143 10,482 9,869 831 613 Ildia 2/ 9,672 12,849 14,342 15,950 15,640 14,801 16,116 13 799 2,914 2,317 Indonesia 2/ 21,753 24,440 23,965 25,507 34,850 39,096 39,855 34,923 3,453 4,932 Korea 38,873 33,259 31,480 31,503 36,216 41,455 43,669 41,232 1,208 2,437 Malaysia 13,349 12,340 10,037 9,141 9,252 9,980 10.475 9,756 611 719 Nigeria 3/ 13,024 14,950 13,627 11,865 12,796 12,206 11,312 5,178 2,057 6,134 Philippines I/ 16.306 16,471 14,507 11,914 11,969 11,224 10,419 7,819 765 2,600 Thailand 8,781 10,450 10,559 12,376 18,035 24,197 27,241 25,058 869 2,183 Turkey I/ 13,596 17,114 16,630 16,705 22,230 22,757 24,187 20,927 6,811 3,260 Venezuela 1/ 25,832 25,923 27,347 25,240 19,032 19,466 20,136 18,894 2,046 1,242 Offshore Banking Centers 66,113 76,720 78,778 89,226 116,422 121,171 129,612 127,627 4,186 1,985 Oil Exporters 145 ,413 156 482 157,457 166,227 175,652 182,054 185,458 150,798 39,895 34,660 DRS leporters 107,813 115280 115,496 122,416 132,264 137,565 141,271 116,963 37,253 24,308 DRS Reporting Countries 651,387 698,180 677,505 673,370 718,257 745,456 763,980 642,577 91,825 121,403 */ DRS Reporters. I/ Also included in Moderately Indebted Middle-income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: OECD/BIS, Statistics on External Indebtedness. Table 5 COMMERCIAL BANKS CLAIMS ON DEVELOPING COUNTRIES (in millions of US$) Claims Liabilities Exchange-Rate Adjusted Flows 1991 1992Q2 1992Q3 1992Q4 1991 1992Q2 1992Q3 1992Q4 1992Q2 1992Q3 1992Q4 All Developing Countries 696,634 724,754 754,995 730,941 681,990 678,447 694,708 661,129 15,294 16,133 5,476 By Geographic Region Africa, South of the Sahara 52,476 53,493 54,629 51,102 44,131 45,456 45,948 42 058 715 138 (439) East Asia & Pacific 174,109 180 264 194,324 193 691 146,858 142,858 155,154 145 102 2,626 12,232 3,167 Europe & Central Asia 156,834 164,098 172,543 158,097 81,519 90,002 98,984 92,286 4,688 1,384 (1,280) Latin America & the Caribbean 212,922 218,396 223,575 220,981 144,419 141,786 141,562 139 573 866 2,857 2,586 North Africa & the Middle East 79,921 86,488 86,169 83 401 218,518 213,215 208,513 201 854 5 036 (1,900) 931 South Asia 20,372 22,015 23,755 23,669 46,545 45,130 44,547 40,256 1,363 1,422 511 Severely Indebted Middle-lacome Countries */ 245,873 249,742 254,549 249,129 154,402 154,278 156,460 154,299 314 539 3,208 Algeria 15,016 14,835 15,035 13,857 3,353 3,225 3,421 3,128 (223) (280) (75) Angola 1,623 1,730 1,948 2,033 478 840 716 748 195 205 120 Argentina 31,282 31,673 32,637 33,512 20,948 19,961 19,525 19,852 413 470 1,727 Bolivia 260 407 331 295 870 759 782 766 95 (81) (30) Brazil 61,428 63,960 64,701 63,932 24,372 25,263 25,877 26,782 1,050 (96) 654 Bulgaria 8,196 7,800 8,332 7,419 1,027 1,251 1,422 1,402 (229) 127 (240) Congo 1,093 1,031 1,080 368 327 366 377 348 24 23 (59) Cote d'lvoire 2,765 2 727 2,838 2,452 1,875 2,176 2,214 2,003 56 (54) (96) Ecuador 3,919 3,749 3,687 3,590 2,805 2,706 2,716 2,847 9 (98) (37) Jamaica 421 441 453 485 611 604 623 651 9 12 39 M0 Jordan 2,183 2,109 2,160 1,838 7,018 7,211 7,408 6,848 (41) 25 (176) Mexico 65,064 66,441 67 784 65,657 28,170 27 576 26,887 26,188 (1,932) 958 (1,260) Morocco 5,416 5,528 5,470 5,248 4,404 5,117 5,495 5,722 96 (191) 57 Panama 29,123 29,587 29,129 31,265 44,253 42,621 42,878 40,344 798 (894) 2,927 Peru 3,644 3,409 3,527 3,390 3,658 3,843 3,971 3,897 3 71 (33) Poland 13,622 13,574 14,665 13,090 5,137 5,589 6,733 7 513 43 325 (260) Syria 818 741 772 698 5,096 5,170 5,415 5,260 (52) 17 (50) Severely Indebted Low-Income Countries */ 33,069 33,016 32,462 29,897 50,508 51,555 53,521 50,484 806 (1,121) (1,125) Moderately Indebted Low-income Countries */ 51,314 55,696 59,522 60,474 31,304 34,719 35,467 32,980 2,465 3,173 2,237 Moderately Indebted Middle-Income Countries */ 133,397 137,399 145,036 137,141 85,518 86,896 91,645 87,825 3,229 3,023 813 Other Selected Countries 234,815 243,372 257,367 257,075 180,591 187,479 199,080 188,134 6,846 10,524 6,630 Chile 1/ 8,038 9,040 9,696 10,029 6,607 6,214 6,607 6,751 824 605 485 China 37,107 36 825 39,416 42,685 46,843 47,113 47,273 48,171 789 2,063 4,530 Colombia 1/ 6,610 6,576 7,007 7,136 8,838 8,633 8,866 8,241 55 380 281 Egypt 3/ 5,773 5,603 5,092 4,269 20,458 21,396 23,170 22,312 276 (722) (368) Hungarv 1/ 10,506 9,839 9,992 8,648 3,742 4,229 4,020 2,840 (285) (346) (591) India 2/ 12,457 13,811 15,184 15,459 10,058 10,883 9,389 6,769 1,120 1,155 703 Indonesia 2/ 34,213 37,203 39,521 40,075 11,387 14,055 16,341 17,135 1,244 1,966 1,226 Korea 39,155 41,323 43,597 42,637 10,482 12,244 14,019 14 428 212 1,891 (32) Malaysia 9 166 9 751 11,925 10 919 9,521 8,480 14,686 12,197 491 2 054 (774) Nigeria 3/ 5,808 5,212 5,275 4,611 5,431 5,420 5,206 4,362 68 (o59) (375) Philip pnes / 8,751 7,763 7,400 7 433 4,849 4,716 4,988 4,528 (669) (439) 117 Thailand 22,705 24,977 26,766 27,424 5,454 5 571 5,582 4 593 1,782 1,618 905 Turkey 1/ 16,250 16,793 17 743 17 766 12 062 14,538 15 567 14,568 961 420 943 Venezuela 1/ 18,276 18,656 18,753 17,984 24,859 23,987 23,366 21,239 (22) (62) (420) Offshore Banking Centers 1,077,896 1,043,037 1,057,806 1,036,41 1,014,574 965,694 963,319 940,018 (40,000) (6,574) 8,298 Oil Exporters 141,106 146,967 152,406 142,686 194,017 186 102 180,625 171,236 5,793 1,028 (45) DRS Reporters 107,175 112,759 119,081 109,944 54,739 53,586 55,844 54,282 3,323 2,184 (153) DRS Reportmg Countries 766,180 780,426 783,087 768,529 602,008 613,132 606,809 591,494 5,839 (10,964) 14,005 */ DRS Reporters. 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Bank for International Settlements, International Banking and Financial Market Developments. Table 6 MATURITY DISTRIBlTION OF BANK CLAIMS ON DEVELOPING COUNTRIES (in millions of US$) -----------------------------------------------1992Q2- Un- Estimated Short- 1988 1989 1990 1991 > 1 yr allocated Short- Term Total < 1 yr < 2yrs > 2 yrs Term (% of Total) All Developing Countries 560,056 557,933 580,152 600,573 616,813 287,900 52,929 250,554 25,430 238,349 39 By Geographic Region Africa, South ofthe Sahara 47,777 46,363 47,790 45,454 45,769 21,041 5,196 17,680 1,852 15,914 35 East Asia & Pacific 101,761 103,229 119,283 142,099 143,757 87,792 9,779 39,071 7,115 77,740 54 Europe& Central Asia 117,372 127,502 147,556 152,775 156,318 55,341 19,153 74,768 7,056 39,003 25 LatinAmerica&theCaribbean 219,438 204,105 185,509 180,986 185,725 80,412 11,103 87,943 6,267 70,395 38 North Africa & the Middle East 61,477 63,801 63,630 64,564 70,399 37,570 6 636 24,494 1,699 30,569 43 South Asia 12,231 12,933 16,384 14,695 14,845 5,744 1,062 6,598 1,441 4,728 32 Severely Indebted Middle-Income Countries *1 229,680 222,052 209,909 209,437 212,843 96,148 16,280 94,305 6,110 81,010 38 Algeria 14,031 14,168 15,183 15,496 15,512 5,216 3,162 6,726 408 2,039 13 Angola 945 1,339 1,497 1,518 1,678 994 199 462 23 734 44 Argentina 32,448 27,054 26,106 26,784 27,982 12,160 1,084 14,063 675 11,204 40 Bolivia 341 284 230 209 225 167 12 37 9 146 65 Brazil 63,861 61,012 55,457 49,074 51,215 24,159 6,251 19,533 1,272 18,900 37 Bulgaria 6,780 7,803 8,704 8,383 8,086 4,796 827 2,259 204 3,997 49 Congo 999 868 841 800 803 376 101 322 4 281 35 Coted'Ivoire 3,257 3,252 3,083 2,721 2,647 2,175 117 289 66 1,968 74 Ecuador 4,545 4,064 3,586 3,425 3,236 1,603 182 1,308 143 1,373 42 Jamaica 485 485 489 453 427 160 47 176 44 128 30 Jordan 2,021 2,271 2,034 1,772 835 165 750 22 599 34 Mexico 62 760 59 747 50,396 55,363 55,373 23,252 1,448 28,312 2,361 21,657 39 Morocco 4,592 4,596 4,851 5 122 5,159 1,526 411 3,209 13 1,041 20 Panama 20,633 21,537 21,558 21,270 22,204 12,324 1,170 8,176 534 11,305 51 Peru 3,694 3,136 2,964 2,906 2,747 1,920 131 575 121 1,814 66 Poland 10,309 10,049 12,187 13,248 13,209 4,149 883 7,969 208 3,569 27 Syria 637 506 631 568 336 90 139 3 255 45 Severely Indebted Low-Income Countries */ 29,058 27,102 27,786 26,810 27,078 12,716 2,245 11,183 934 10,455 39 Moderately Indebted Low-Income Countries */ 30,925 32,500 40,464 41,899 42,196 21,679 4,256 14,398 1,863 17,437 41 Moderately Indebted Middle-Income Countries */ 122,459 124,401 131,336 129,534 131,476 39,706 15,766 71,167 4,837 26,990 21 Other Selected Countries 173,770 173,729 191,434 204,479 205,954 101,340 14,928 79,340 10,346 86,361 42 Chile 1/ 11,038 9,329 8.901 8,035 8,898 3,797 386 4 579 136 3 474 39 China 16 652 17,983 22 273 26,749 24,924 9,592 2,161 12,093 1,078 7,544 30 Colombia 1/ 6,554 6,299 6,353 6,260 6,297 2,156 541 3,418 182 1,662 26 Egypt 3/ 6,138 6 087 5,967 5,499 5,490 3 130 585 1,738 37 2,520 46 Hunga 1/ 11,720 11,953 12,153 10,758 9,902 2,360 1,148 5 572 822 1,294 13 India 27/ 9,318 10,579 12,149 11,090 11 133 3,733 829 5,897 674 2,863 26 Indonesia 2/ 17,918 18,813 24,655 27,318 27,610 15 791 3,157 7,680 982 12,608 46 Korea 21,482 23,306 28,744 34,254 36,889 26,045 2,010 6,763 2,071 24,147 65 Malaysia 8,353 7,825 7,266 7,890 7,722 3,168 498 2,970 1,086 2,616 34 Nigeria 3/ 8 992 7,307 6,353 5,523 4 635 1,701 301 2,455 178 1,302 28 Philippines 1/ 11,573 9,645 9,337 8,763 7,114 2,867 304 3,491 452 2,514 35 ThaiIand 8,338 10,591 13,569 19,500 21,372 14,659 1,083 4,779 851 13,384 63 Turkey 1/ 10,690 10,918 14,731 15,093 15,237 7,328 1,383 5,421 1,105 5 906 39 Venezuela 1/ 25,004 23,094 18,983 17,747 18,731 5,013 542 12,484 692 4,527 24 Offshore Banking Centers 358,883 396,825 453,039 459,164 475,173 390,550 12,550 58,320 13,753 378,154 80 Oil Exporters 111,190 117 648 120,038 123,783 129,111 45,878 16 948 63,026 3,259 31,568 24 DRSReporters 91,102 95,893 101,335 104,717 109,418 33,722 15,523 57,433 2,740 20,572 19 DRS Reporting Countries 518,363 517,320 539,148 560,928 572,967 266,711 49,685 235,140 21,431 221,821 39 */ DRS Reporting Countries 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Bank for International Settlements, The Maturity and Sectoral Distribution of International Bank Lending. Table 7a U.S. COMMERCIAL BANK CLAIMS ON DEVELOPING COUNTRI:ES */ (in millions of US$) 1984 1985 1986 1987 1988 1989 1990 1991 1992Q2 1992Q3 1992Q4 All Developing Countries 147,851 134,207 118,459 110,811 93,014 82,182 71,774 66,999 69,207 71,359 73,031 By Geographic Re on Africa, South of e Sahara 10,376 7,708 2,896 5,606 2,212 4,500 3,586 3,080 2,871 2,871 2,930 East Asia & Pacific 26,728 23,068 19,331 16 665 13,721 13,111 12,793 12 837 13,168 14,230 14,325 Europe& Central Asia 10,889 10,212 8,410 7,656 6,634 5,799 5,893 5,103 4,819 4,665 4,359 LatinAmerica&theCaribbean 87,165 82,396 78,945 74,670 64,701 53,233 44,292 41,112 42,264 43,835 45,746 North Africa & the Middle East 10,820 8,682 7,235 4,723 4,509 4,264 4,212 4,101 5,122 4,865 4,591 South Asia 1,873 2,141 1,642 1,491 1,237 1,275 998 766 963 893 1,080 Severely Indebted Middle-Income Countries **/ 70,178 66,268 63,470 59,218 50,703 40,892 33,532 30,230 30,803 32,062 33,143 Algeria 1,020 829 848 130 646 528 552 499 532 497 486 Angola 7,975 8,411 8,524 8,812 7,879 4,500 3,497 3,813 4,502 5,159 5,777 Boivia 212 113 96 66 38 10 8 11 13 11 18 Brazil 23,869 22,796 22,404 21,275 19,391 16,284 11,444 6,897 7,049 6,714 7,352 Bulgaria 100 114 112 88 151 76 57 70 48 51 32 Congo Cote d'lvoire 471 358 365 363 311 213 76 35 27 16 18 Ecuador 2,144 2,143 2,170 1,919 1,519 1,029 689 500 476 513 457 Jamaica 330 261 205 160 188 152 162 154 145 144 147 Jordan 214 166 154 167 162 118 152 120 114 94 83 Mexico 26,525 24,934 23,654 22,722 17,887 16,060 15,212 16,516 16,323 17,223 17,277 Morocco 911 905 892 820 727 618 575 549 498 457 461 Panama 3,313 3,002 2,191 1,359 964 735 689 641 700 769 615 C Peru 2,357 1,654 1,344 901 518 215 116 140 153 161 195 Poland 693 550 469 386 289 313 280 267 210 242 216 Syria 44 32 42 50 33 41 23 18 13 11 9 Severely Indebted Low-Income Countries **/ 5,685 4,197 3,324 2,519 1,836 1,806 1,167 1,093 1,104 1,009 1,010 Moderately Indebted Low-Income Countries **I 4,424 4,007 3,550 2,749 2,118 2,113 2,088 2,104 2,463 2,701 2,734 Moderately Indebted Middle-Income Countries **/ 31,710 30,105 27,582 25,700 23,322 19,775 17,932 17,672 17,851 17,964 18,268 Other Selected Countries 50,425 45,995 38,297 32 979 29,672 26,122 25,395 24,777 25,178 26,088 26,307 Chile 1/ 6,697 6,569 6,459 5,999 5,044 3,945 3,085 2,730 3,029 3,061 3,174 China 878 573 491 439 376 342 340 344 310 347 430 Colombia 1/ 2,967 2,625 2,148 2,068 2,117 1,921 1,882 1,742 1,658 1,805 1,940 Egypt 3/ 1,284 996 651 437 293 189 195 205 246 175 148 Hungary 1/ 765 606 346 380 319 247 202 357 262 249 214 India 2/ 755 935 999 989 817 831 676 315 469 412 462 Indonesia 2/ 3,382 2,748 2,155 1,522 1,133 1,085 1,307 1,596 1,796 2,103 2,050 Korea 9,956 9,165 5,997 3,849 3,857 3,972 4,293 3,799 3,771 4,230 4,032 Malaysia 1,726 1,087 741 477 423 324 345 513 501 546 716 Nigeria 3/ 1,539 1,199 903 901 817 694 522 476 317 303 297 Philippines 1/ 5,454 5,418 5,107 4,674 3,993 3,233 3,197 3,005 2,811 2,709 2,906 Thailand 2,191 1,877 1 114 816 943 1,002 1,383 1,558 1,603 1,796 1,807 Turkey 1/ 2,018 2,106 2,074 2,108 1,539 1,188 1,528 1,331 1,347 1,362 1,307 Venezuela 1/ 10,813 10,091 9,112 8,320 8,001 7,149 6,440 6,806 7,058 6,990 6,824 Offshore Banking Centers 38,784 34,176 32 339 32,294 29,012 27,840 23,731 26,099 28,585 25,304 26,187 Oil Exporters 17,560 15,268 13,215 11,059 11,396 10,460 9,252 10,010 10,330 10,004 9,689 DRS Reporters 13,764 12,445 11,277 9,720 10,123 8,996 7,861 8,362 8,492 8,208 8,014 DRS Reportig Countries 138,308 127,256 114,356 103,224 89,505 76,165 67,010 63,913 65,494 66,695 67,539 */ Consolidated claims of U.S. banks and their worldwide operations. **/ DRS Reporters. 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Federal Financial Institutions Examinations Council, U.S. Country Exposure Lending Survey. Table 7b CLAIMS ON DEVELOPING COUNTRIES OF BANKS IN THE UN1TED STATES */ (in millions of US$) 1987 1988 1989 1990 1991Q2 1991Q3 1991Q4 1992Q1 1992Q2 1992Q3 1992Q4 All Developing Countries 125,832 126,759 118,256 92,423 90,120 85,283 87,893 88,282 87,005 89,094 87,126 By Geographic Region Africa, South of the Sahara 2,892 3,273 3,252 3,265 3,414 3,343 2,959 2,989 2,709 2,759 2,871 East Asia & Pacific 14,635 14,181 12,795 12,937 14,136 12,685 14,335 14,373 13,553 14,720 15,073 Europe& Central Asia 5 894 7,142 7,779 7,444 8 555 7,932 8,748 9,038 9 ,534 9,886 9 441 Latin America & the Caribbean 97,479 91,469 82,589 56 737 52,365 49,776 50 433 50,708 49,966 51,281 49,510 North Africa & the Middle East 4,096 9,284 9,669 9,617 9,375 9,079 9,299 8,820 8,933 8,344 8,122 South Asia 836 1,410 2,172 2,423 2,275 2,468 2,119 2,354 2,310 2,104 2,109 Severely Indebted Middle-Income Countries **/ 80,720 73,148 65,401 47,890 44,940 41,853 43,005 42,985 42,461 41,978 42,283 Algeria Angola 85 73 60 106 127 91 . 23 Ar entina 12,520 12,322 9,790 7,506 6,617 6,166 6,311 6,115 5,710 4,872 5,102 Bo ivia 134 110 30 55 49 53 51 Brazil 26,447 26,348 24,256 18,956 16,250 12,823 12,856 13,300 12,810 12,042 11,430 Bulgaria 48 68 98 83 92 66 119 49 29 24 24 Congo Cote d'Ivoire 134 178 113 60 59 48 51 Ecuador 2,410 2,210 1,768 1,479 1,433 1,203 1,156 1,078 1,009 985 966 Jamaica 195 220 303 242 194 155 162 156 152 163 172 Jordan 135 151 175 214 193 174 139 Mexico 31,034 26,852 24,997 15,784 16,272 17,681 17,983 18,347 18,184 19,760 18,053 W Morocco 560 525 730 735 805 802 841 801 774 714 697 Panama 5,370 2,787 1,985 1,709 1,632 1,765 1,954 1,995 2,337 2,095 4,644 Peru 1,357 1,036 793 698 756 740 763 661 737 856 753 Poland 239 232 258 212 431 424 467 453 423 447 427 Syria 52 36 45 51 30 28 27 30 32 20 15 Severely Indebted Low-Income Countries **/ 1,696 1,686 1,817 1,578 1,468 1,347 1,440 1,404 1,521 1,205 1,176 Moderately Indebted Low-Income Countries **/ 1,518 1,878 2,658 3,155 2,819 2,610 2,896 2,754 2,687 2,550 2,744 Moderately Indebted Middle-Income Countries **/ 27,474 28,335 26,094 16,827 16,561 16,317 17,771 17,175 18,611 19,808 20,111 Other Selected Countries 33,660 33,762 32,202 25,050 25,304 24,412 24,943 24,713 24,467 26,401 27,038 Chile 1/ 6,492 5,466 4,696 3,567 3,184 3,004 3,088 3,083 3,532 3,611 3,662 China 1,058 824 703 643 1,052 683 761 734 709 667 938 Colombia 1/ 2,898 3,146 2,917 3,037 2,793 2,868 2,858 2,778 2,747 2,892 3,161 Egypt 3/ 546 527 508 395 329 331 305 279 264 265 202 Hungarv 1/ 472 377 384 190 172 165 125 94 91 104 69 India 2/ 574 600 669 711 530 575 524 551 484 544 564 Indonesia 2/ 639 719 660 975 942 920 1 005 1 152 1,153 1,173 1,297 Korea 5,261 5,304 5,422 5,931 6,129 5,365 6,191 6,551 6,012 6,351 6,283 Malaysia 135 130 477 337 273 425 270 324 224 311 278 Nigeria 3/ Phi ppines 1/ 2,088 1,897 1,347 1,279 1,536 1,726 2,004 1,924 1,739 2,233 2,240 Thailand 642 925 1,185 1,624 2,051 2,015 1,786 1,663 1,827 1,880 1,946 Turkey 1/ 1,767 2 797 3,024 3,429 3,695 3,377 3 068 2,956 3 030 3,027 3,010 Venezuela 1/ 11,088 11,050 10,210 2,932 2,618 2,958 2,958 2,624 2,655 3,343 3,388 Offshore Banking Centers 147,781 156,573 192,361 227,994 245,247 249,546 243,204 250,209 233,907 205,131 210,300 Oil Exporters 12,997 14,295 13 501 5,521 5,484 5,838 6,800 6,854 7,292 8,087 8,007 DRS Reporters 11,809 12,676 11,813 3,986 4,105 4,523 5,469 5,665 6,108 6,999 6,979 DRS Reporting Countries 188,105 183,819 186,024 160,262 159,456 156,439 165,780 168,680 161,858 138,145 139,815 * All resident banks. 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: U.S. Treasury Bulletin, Quarterly series. Table 8a UK COMMIERCIAL BANK CLAIMS ON DEVELOPING COUNTRIES *l (in millions of US$) 1984 1985 1986 1987 1988 1989 1990Q2 1990Q4 1991Q2 1991Q4 AU Developing Countries 68,324 69,256 69,831 69,553 64,519 56,419 50,857 48,975 45,189 49,582 By Geographic Region Africa, South of the Sahara 11,311 10,519 10,297 10,794 9,908 8,251 8,731 8,001 7,430 7,664 East Asia & Pacific 9,223 8 995 8 476 7,579 6,493 5,423 5,413 5,657 5,88 7,020 Europe& Central Asia 10,614 11,953 12,074 11,710 11,770 11,210 11,150 10,780 9,574 10,436 Latin America & the Caribbean 30,083 30,101 30,880 30,714 27,304 23,623 18,046 16,856 16,271 17,475 North Africa & the Middle East 6,233 6,401 6,367 6,816 7 241 6 338 6,044 5,981 4 508 5,289 South Asia 860 1,287 1,737 1,940 1,803 1,574 1,473 1,700 1,518 1,698 Severely Indebted Middle-4Icome Countries ** 27,590 27,766 28,959 29,712 26,662 24,132 18,851 17,725 16,695 17,771 Algeria 658 633 823 832 812 784 750 760 655 921 Angola 51 77 96 74 58 32 26 33 31 22 Argentina 3,394 3,677 4,110 4,206 4,108 3,343 2,625 2,352 2,244 2,738 Bolivia 124 94 99 109 33 26 26 8 6 Brazil 9,344 9,140 9,515 9,673 7,585 6,890 5,173 4,694 4,226 4,104 Bulgaria 208 434 457 411 575 532 467 473 209 233 Congo 57 71 91 85 69 39 28 37 37 39 Cote d'Ivoire 345 335 356 347 354 292 272 247 148 155 Ecuador 725 760 809 864 799 750 603 546 542 514 Jamaica 50 51 45 42 52 69 70 68 63 71 Jordan 154 159 193 300 387 376 328 382 355 357 Mexico 8,746 8,669 8,674 8,773 8,291 7,500 5,146 4,909 5,270 5,611 Morocco 361 385 421 425 374 447 412 401 308 351 Panama 1,429 1,379 1,319 1,523 1,356 1,325 1,193 1,191 1,143 1,061 Peru 708 649 663 670 588 464 429 276 295 342 Poland 1,146 1,136 1,119 1,276 1,132 1,182 1,226 1,279 1,107 1,188 Syria 90 117 169 102 89 81 77 69 62 58 Severely Indebted Low-Income Countries t*/ 5,497 5,692 5,518 5,897 5,413 4,232 4,386 3,804 3,269 3,218 Moderately Indebted Low-Income Countries *'/ 2,388 2,779 3,203 3,332 3,117 2,552 2,410 2,676 2,491 2,89S Moderately Indebted Middle-Income Countries **/ 12,020 12,906 13,188 12,244 12,047 10,582 10,049 9,572 8,669 9,207 Other Selected Countries 18,725 18,974 19,090 18,237 16,080 13,062 12,248 12,654 11,994 13,301 Chile I/ 2,095 2,178 2,089 1,725 1,289 626 530 567 524 704 China 210 457 267 411 756 938 945 1,025 843 1,031 Colombia 1/ 786 756 794 715 743 785 657 643 546 613 Egypt 3/ 750 727 637 730 729 629 644 650 582 594 Hungar 1/ 812 661 589 602 548 518 420 330 331 299 India 2/ 494 838 1,267 1,479 1,367 1,100 1,059 1,219 1,083 1,164 Indonesia 2/ 1,493 1,448 1 433 1,391 1,305 1,053 961 1,021 1,009 1,231 Korea 2,763 2,707 2,442 2,040 1,376 1,130 1,214 1,343 1,560 1,842 Malaysia 1,657 1,451 1,390 949 463 329 279 484 495 605 Nigeria 3/ 2 394 2,495 2,818 2,981 2,452 1,704 1,507 1,065 741 702 Phtlippines l/ 1,676 1,531 1,623 1,500 1,446 956 795 797 736 717 Thailand 418 399 212 145 155 190 239 228 332 424 Turkey I/ 406 636 887 944 826 892 959 1,142 1,156 1,134 Venezuela I 2,771 2,690 2,642 2,625 2,625 2,212 2,039 2,140 2,056 2,241 Offshore Banking Centers 20,629 21,528 25,627 29,703 27,225 27,622 29,075 28,509 25,393 26,343 Oil Exporters 11,118 12,114 12,845 13,012 13,134 11,421 11,011 10,150 8,568 9,431 DRS Reporters 9,141 10,195 10,910 10,779 10,668 9,318 9,034 8,066 7,050 7,861 DRS Reporting Countries 59,792 61,448 62,088 61,485 56,001 49,093 42,804 41,055 38,079 41,917 *l Consolidated claims of UK banks and their worldwide operations. * DRS Reporters. I/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Bank of England , Statistical Abstract, Part 1. Table 8b DEVELOPING COUNTRY CLAIMS OF BANKS IN THE UNITED KINGDOM */ (in millions of US$) 1984 1985 1986 1987 1988 1989 1990Q3 1990Q4 1991Q1 1991Q2 1991Q4 AD Developing Countries %,640 108,444 110,909 111,884 103,736 106,231 102,470 102,544 97,152 94,644 98,296 By Geographic Reeion Africa, South of=he Sahara 19,022 19,644 19,195 18 414 16 765 14,526 14 874 13,936 13,467 12,737 13,091 East Asia & Pacific 10,057 11,656 11,307 12,168 10,558 9,787 11,434 11,875 12,314 12,106 13,262 Europe& Central Asia 22,978 28,863 31,345 33,495 33,127 34,311 33,322 32,568 29,431 27,836 28,450 Latin America & the Caribbean 37,360 39,872 40,117 38,350 34,346 30 901 25,274 26,431 26,540 27,690 28,288 North Africa & the Middle East 5,630 6,011 6,177 6,158 5,994 14,096 14,417 14,275 11,988 11,285 12,049 South Asia 1,593 2,398 2,768 3,299 2,946 2,610 3,149 3,459 3,412 2,990 3,156 Severely Indebted Middle-lncome Countries */ 40,565 43,910 46,776 44,543 38,583 35,626 30,274 30,626 30,282 30,582 31,402 Angola 86 131 151 91 61 205 192 173 155 169 76 Algeria 1,428 1 636 2 109 2 254 2 225 2,076 1 977 1,912 1,723 1,592 1,760 Argentina 3,786 4 479 5,087 5,175 5,123 4,239 3 283 3,029 2,900 2,815 2,971 Bolivia 140 118 112 120 38 30 12 11 12 10 7 Brazil 13,161 13,311 13,123 12,588 10,186 9 330 7 392 7,202 7,124 6,739 6,433 Bulgaria 275 741 1,055 1,388 1,837 1,978 1,750 1,637 1,408 1,220 1,289 Congo 93 105 124 126 88 48 31 19 16 14 13 Cote d'lvoire 507 527 518 482 499 484 384 391 284 269 239 Ecuador Jamaica 84 68 65 56 48 57 93 57 61 53 54 Jordan Mexico 12,002 12,976 13,012 12,739 11,831 11,225 9,491 10,584 11,722 12,990 13,582 Morocco Panama 6,177 6,679 8,225 6,237 3,780 3,179 2,973 2,955 2,454 2,418 2,591 Lo Peru 532 642 630 631 548 466 322 323 304 291 282 Poland 2,167 2,338 2,366 2,511 2,210 2,211 2,289 2,250 2,051 1,928 2,033 Syria 127 159 199 145 109 98 85 83 68 74 72 Severely Indebted Low-Income Countries **/ 8,721 9,228 8,404 8,843 8,675 6,985 7,281 6,849 6,730 5,921 6,470 Moderately Indebted Low-Income Countries **/ 3,030 3,936 4,387 4,927 4,718 3,850 4,334 4,700 4,613 4,183 4,417 Moderately Indebted Middle-Income Countries **/ 14,513 18,928 21,640 22,172 22,456 22,587 21,016 20,969 18 ,720 18,537 18,241 Other Selected Countries 23,637 27,787 27,800 28,221 26,210 23,456 24,920 25,545 24,422 23,982 25,420 Chile 1/ 2,234 2,545 2,350 2,004 1,396 802 751 817 831 800 806 China 247 1,392 632 590 1,070 1,246 1,650 1,805 1,690 1,632 1,796 Colombia 1/ 736 703 744 607 731 757 632 591 530 494 587 Egypt 3/ 1,380 1,327 955 964 888 880 859 841 1,159 772 938 Hungary l/ 1,793 2,359 2,589 3,003 2,684 2,647 2,150 2,004 1,839 1,823 1,696 India2 839 1,348 1,757 2,271 2,023 1,692 2,004 2,258 2,234 1,862 1,972 Indonesia 2/ 1,398 1,511 1,592 1,623 1,789 1,332 1,326 1,351 1,338 1,275 1,327 Korea 2,981 3,438 3,518 3,554 3,001 2,988 3,702 3,960 3,832 4,131 4,780 Malaysia 2,233 2,265 2,345 1 913 1,522 1,179 1,321 1,309 1,241 1,239 1,369 Nigeria 3/ 3,465 3,850 4,113 4,587 4 036 3,079 2,694 2,347 2,125 1,859 1,888 Philippines 1/ 1,625 1,481 1,622 1,424 1,324 958 1,242 1,167 1,116 1,065 1,056 Thai and 667 668 623 596 593 635 794 783 924 963 1,104 Turkey 1/ 749 1,440 1 817 2,009 1 939 2,398 3,338 3,322 3,132 3,273 3,187 Venezuela 1/ 3,290 3,460 3,143 3,076 3,214 2,863 2,457 2,990 2,431 2,794 2,914 Offshore Banking Centers 89,363 89,554 104,843 120,176 112,896 119,231 131,506 131,203 123,430 116,467 114,400 Oil Exporters 12,543 16,281 19,074 20,323 21,027 26,520 23,703 23.337 20,642 20,292 21,097 DRS Reporters 11,651 15,227 18,017 19,258 19,977 21,192 18,549 18,295 16,102 15,754 16,429 DRS Reporting Countries 99,404 108,240 112,798 113,129 106,188 103,086 99,566 100,502 95,475 92,558 98,174 */ All resident banks. **/ DRS Reporters. 1/ Also inc[uded in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Bank of England , Statistical Abstract. Part I. Table 9a GERMAN COMMERCIAL BANK CLAIMS ON DEVELOPING COUNTRIES */ (in millions of US$) 1986 1987 1988 1989 1990 1991Q3 1991Q4 1992Q1 1992Q2 1992Q3 1992Q4 All Developing Countries 69,886 83,856 80,339 87,751 122,110 122,541 135,605 133,299 146,839 158,036 145,198 By Geographic Region Africa, South of theSahara 6,815 7,889 6,822 7,132 8,674 8,078 8,644 8,334 9,112 9,716 8,953 East Asia & Pacific 7,738 9,365 9,400 10,252 10,565 13,618 14,954 14,781 16,422 17,912 16,365 Europe & Central Asia 20,881 25,848 25,519 29,214 52,542 52,586 59,036 56,994 63,432 69 508 62,724 Latin America & the Caribbean 20,376 23,500 22,397 22,739 27,707 27,964 29,802 30 344 32,995 35,166 33,038 North Africa & the Middle East 9,474 11,521 10,911 12,081 13950 12,859 14,559 14,519 15,961 16,242 15,620 South Asia 4,603 5,733 5,291 6,333 8,672 7,436 8,610 8,326 8,918 9,493 8,498 Severely Indebted Middle-Income Countries **/ 23,898 28,160 26,797 27,559 32,608 33,489 36,382 35,795 38,160 41,386 38,156 Algeria 883 1,095 1,254 1,346 1,815 1,726 1,883 1,732 1,827 1,919 1,648 Angola 16 8 19 32 136 153 158 Ar entina 3,682 4,476 4,716 4,767 6,099 5,925 6,422 6,564 7,178 7,602 7,357 Borivia 124 145 136 163 218 231 270 254 281 312 310 Brazil 7,257 8,574 7,704 8,138 9,505 9,165 9,842 9,796 10,656 11,293 10,656 Bulgaria 1,010 1,340 1,681 1,892 2,185 2,503 2,685 2,459 2,619 2,905 2,524 Congo Cote d'lvoire 231 282 245 268 315 304 352 322 345 402 348 Ecuador 367 420 430 497 646 726 640 625 646 636 585 Jamaica Jordan 247 391 374 393 519 476 516 486 517 556 514 Mexico 3,909 4,145 3,725 3,256 3,353 3,587 3,882 4,141 4,278 4,896 4,470 Morocco 732 868 836 930 1,110 1,035 1,146 1,088 1,181 1,256 1,129 Panama 858 1,019 935 961 1,171 1,074 1,383 1,540 1,342 1,514 1,473 Peru 579 730 680 751 910 874 947 924 1,001 1,117 1,014 Poland 3,747 4,340 3,742 3,793 4,026 5,167 5,702 5,344 5,750 6,401 5,607 Syria 256 327 321 371 600 543 555 520 540 577 521 Severely Indebted Low-Income Countries **/ 5,715 6,819 5,815 6,181 7,207 6,404 6,886 6,684 7,337 7,036 6,301 Moderatly Indebted Low-Income Countries **/ 7,132 8,686 8,048 9,243 10,966 9,938 11,402 10,837 11,580 12,410 11,288 Moderately Indebted Middle-Income Countries **/ 15,321 18,849 19,225 22,052 32,222 40,233 45,119 44,135 49,257 53,567 48,859 Other Selected Countries 21,627 26,591 25,844 28,430 33,078 34,359 37,472 36,056 39,747 42,264 38,626 Chile 1/ 1,014 1,048 941 1,007 1,388 1,093 1,166 1,250 1,439 1,587 1,651 China 786 1,236 1,820 1,746 2,146 2,272 2,324 2,490 3,005 3,108 2,381 Colombia 1/ 624 764 844 899 1,035 958 1,001 946 993 1,123 1,054 Egypt 3/ 1,810 2,309 2,129 2,424 2,993 2,847 3,121 2,939 3,352 3,046 2,650 Hungary 1/ 1,633 2,592 2,450 3,059 3,635 3,410 3,827 3,644 3,851 4,294 3,668 India 2/ 2,972 3,684 3,409 4,306 5,120 4,931 5,292 5,137 5,556 5,961 5,367 Indonesia 2/ 2 641 3,075 2,847 3,008 3,570 3 415 3,799 3,523 3 713 3,944 3,705 Korea 1,320 1,182 1,154 1,543 938 2,955 3,224 3,218 3,534 3,837 3,778 Malaysia 663 740 648 659 686 689 872 840 989 1,100 1,093 Nigeria 3/ 1,785 1,803 1,273 1,068 1,283 1,057 1,059 797 863 904 745 Philippines 1/ 612 570 472 436 400 438 461 445 426 453 506 Thaitand 616 771 761 945 1,103 1,939 2,184 2,148 2,320 2,657 2,600 Turkey 1/ 3,027 4,561 4 777 5 067 6,594 6,228 6,824 6 234 6,832 7,348 6,828 Venezuela 1/ 2,123 2,254 2,318 2,262 2,188 2,127 2,319 2,445 2,876 2 ,901 2,602 Offshore Banking Centers 27,863 38,641 39,861 46,144 55,147 58,205 64,390 64,213 61,149 65,082 66,516 Oil Exporters 12 257 13,670 13,676 15,765 24,062 32,293 36,898 36,244 40,675 44,037 40,555 DRS Reporters 10,107 10,964 11 135 12,900 21,564 30,066 34,686 34,147 38,616 41,991 38,616 DRS Reporting Countries 61,921 74,116 71,127 77,911 97,479 109,695 121,436 119,548 131,998 142,379 130,552 / Partly consolidated aggregate claims of German banks and their worldwide operations. **/ DRS Reporters. 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Deutsche Bundesbank, Zahlungsbilanzstatistik. Table 9b DEVELOPING COUNTRIES CLAIMS ON BANKS IN GERMANY */ (in millions of US$) 1986 1987 1988 1989 1990 1991Q3 1991Q4 1992Q1 1992Q2 1992Q3 1992Q4 AU Developing Countries 45,885 57,497 54,862 62,581 95,448 95,475 107,688 103,931 114,123 123,483 112,969 By Geographic Region Africa, South of the Sahara 4,973 5,767 4,836 5,217 6,444 6,023 6,534 6,339 7,081 7,624 7,068 IEast A^sia & Pacific 5,249 6,638 6,236 7,039 6,800 8 629 9,758 9,363 10,504 11,499 10,415 Europe & Central Asia 13,801 17,635 17,271 20,671 44,157 45,295 51,557 49,589 54,756 59,869 54,204 Latin America & the Caribbean 9,201 11,574 11,512 12 805 17,019 17,492 19,350 18,936 20,448 21,979 20,347 North Africa & the Middle East 8 148 10 266 9,893 10,986 12,886 11,256 12,520 12,069 13,143 13,688 13,122 South Asia 4,512 5,618 5,113 5,862 8,142 6,781 7,970 7,636 8,192 8,824 7,814 Severely Indebted Middle-Income Countries **/ 12,996 15,866 15,903 17,570 21,148 22,538 24,938 23,769 25,462 27,658 25,048 Algeria 750 917 1,089 1,213 1,671 1,532 1,693 1,545 1,620 1,716 1,449 Angola 16 8 19 32 136 153 158 Argentina 1,663 2,220 2,277 2,570 3,443 3,422 3,813 3,737 4,138 4,296 4,165 Bolivia 124 145 136 163 218 231 270 254 281 312 310 Brazil 3,925 4,792 4 599 4,893 5,658 5,279 5 738 5,443 5,954 6,162 5,606 Bulgaria 747 969 1,255 1,488 1,774 2,114 2,321 2,107 2,241 2,484 2,159 Congo Cote d'lvoire 231 282 245 268 315 274 317 291 316 370 319 Ecuador 122 137 148 217 311 415 338 327 342 329 284 Jamaica Jordan 247 391 374 393 519 476 516 486 517 556 514 Mexico 1,001 1,193 1,334 1,417 1,552 1,945 2,229 2,478 2,527 3,021 2,742 Morocco 616 765 738 861 1,009 945 1,054 1,000 1,089 1,162 1,037 Panama 432 353 243 381 491 404 605 598 581 739 749 Ln Peru 384 514 476 536 663 706 779 729 756 852 756 Poland 2,483 2,851 2,651 2,767 2,788 4,100 4,553 4,255 4,559 5,081 4,438 Syria 256 327 321 371 600 543 555 520 540 577 521 Severely Indebted Low-Income Countries */ 5,250 6,185 5,227 5,648 6,481 5,667 6,120 5,966 6,544 6,317 5,689 Moderately Indebted Low-Income Countries **/ 6,611 8,164 7,461 8,304 9,770 8,500 10,003 9,396 10,157 11,077 9,895 Moderately Indebted Middle-Income Countries **/ 9,375 12,524 12,396 15,114 26,356 35,317 40,526 39,337 43,608 47,712 43,524 Other Selected Countries 15,252 19,999 18,855 21,384 25,589 26,335 29,444 27,902 30,589 32,473 29,343 Chile 1/ 283 343 318 505 781 670 743 762 856 966 963 China 620 979 1,177 1,427 1,850 1,761 1,947 1,980 2,263 2,322 1,987 Colombia 1/ 416 572 589 663 868 780 828 779 806 941 860 Egypt 3/ 1,795 2,297 2,117 2,424 2,993 2,788 3,041 2,840 3,221 2,957 2,571 Hungary 1/ 655 1,428 1,345 1,762 2,471 2,641 3,016 2,869 3,029 3,240 2 805 India 2/ 2,882 3,569 3,231 3,835 4,590 4,343 4,720 4,512 4,885 5,322 4,709 Indonesia 2/ 2,210 2,668 2,438 2,540 2,905 2,633 3,041 2,773 3,014 3,280 2,997 Korea 560 705 577 877 . 1,998 2,211 2,167 2,435 2,541 2,463 Malaysia 369 446 375 338 221 210 264 208 308 324 286 Nigeria 3/ 1,447 1,368 908 763 872 753 772 607 674 724 584 Philippines 1/ 216 314 276 298 324 361 390 397 348 378 405 Thai and 489 563 491 605 756 830 1,002 970 1,103 1,286 1,198 Turkey 1/ 2,589 3,905 4,170 4,451 5,782 5,404 6,012 5,531 5,980 6,477 5,980 Venezuela 1/ 722 842 841 895 1,177 1,163 1,458 1,507 1,667 1,716 1,535 Offshore Banking Centers 11,715 16,152 14,637 18,726 19,956 17,679 19,873 20,248 19,663 21,999 24,061 Oil Exporters 8,429 9,564 9 014 10,838 19,771 28 391 32 829 32,307 36,203 39,608 36,470 DRS Reporters 6,526 7,092 6,633 8,237 17,705 27,112 31,545 31,107 35,077 38,499 35,419 DRS Reporting Countries 40,613 50,716 48,454 55,641 74,143 86,448 97,681 94,546 103,995 112,812 102,932 */ All resident banks. **/ DRS Reporters. 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Deutsche Bundesbank, Zahlungsbilanzstatistik. Table 10a FRENCH COMMERCIAL BANK CLAIMS ON DEVELOPING COUNTRIES */ (in millions of US$) 1986 1987 1988 1989 1990 1991Q2 1991Q3 1991Q4 1992Q1 1992Q2 All Developing Countries 84,018 90,326 97,989 92,526 87,069 80,230 83,777 86,837 85,864 89,448 By Geographic Region Africa, South of the Sahara 13,722 15,529 17,819 14,007 14,561 13,006 12,786 12,988 11,916 12,753 East Asia & Pacific 9,829 8,179 10,280 13,941 15,448 15,912 17,963 17,522 17 833 18,463 Europe & Central Asia 16,909 18 915 21,129 21,774 16 745 15,308 16,519 17 513 17,694 18,142 Latin America & the Caribbean 22,614 23,463 24,863 21,762 18,559 17,288 17,351 17,606 17,549 18,193 North Africa & the Middle East 17,253 19 712 19,552 19,214 19 812 17,018 17,332 19 269 18,873 19,631 South Asia 3,692 4,528 4,347 1,829 1,943 1,698 1,824 1 939 2,000 2,265 Severely Indebted Middle-Income Countries **/ 31,833 35,483 32,868 34,785 32,741 29,244 30,047 30,547 29,702 30,747 Algeria 4,806 5,856 5,077 5,335 6,530 5,202 5,757 5,775 5,276 5,252 Angola 537 731 636 646 630 730 707 732 Argentina 2,005 2,136 2,299 2,265 2,169 2,255 2,161 2,335 2,331 2,424 Bolivia ~~~ ~~~~~~~~~~~~~~~~~~36 27 21 21 21 18 16 18 Brazil 8,655 8,917 8,579 8,463 8,466 7,704 7,744 7,885 7,880 7,810 Bulgaria 731 936 755 628 633 654 623 648 Congo 1,102 1,204 898 809 751 674 637 697 645 705 Cote d'Ivoire 1,961 2,283 1,991 2,045 2,036 1,750 1,867 1,936 1,741 1,956 Ecuador 150 161 188 216 208 164 146 157 Jamaica 40 34 30 22 16 14 12 14 Jordan 647 850 975 1,141 1,023 1,005 1,020 899 778 Mexico 5,528 5,535 4,559 4,995 2,400 2,367 2,328 2,357 2,515 2,801 Morocco 2,286 2,495 2,004 2,081 2,321 1,969 2 039 2,199 2 026 2,173 Panama 3,450 4,233 2,720 3,566 2,972 2,624 2,675 2,530 2,695 3,012 ON ~Peru 625 659 690 703 698 640 619 623 Poland 1,680 1,790 1,419 1,383 1,375 1,139 1,347 1,321 1,307 1,399 Syria 359 386 352 319 259 301 280 271 262 245 Severely Indebted Low-Income Countries **/ 5,421 5,998 7,752 7,553 8,010 7,264 7,038 7,113 6,708 7,028 Moderately Indebted Low-Income Countries **/ 2,997 3,431 4,472 4,264 4,647 4,322 4,674 4,844 4,707 4,857 Moderately Indebted Middle-Income Countries **/ 13,909 15,171 17,603 19,844 15,486 12,751 13,077 13,513 12,486 12,957 Other Selected Countries 19,831 17,886 20,366 22,827 23,345 22,234 24,151 23,758 23,281 23,793 Chile 1/ 395 563 608 461 437 437 421 523 China 1,374 2,125 2,656 2,521 2,886 3,769 3,454 3,937 Colombia 1/ 432 414 503 504 611 512 573 575 Eeypt 3/ 2,629 2,985 2,670 2,782 2,787 2,491 2,425 2,437 2,242 2,341 Hungarv 1/ 699 736 469 269 276 217 189 193 India 2/ 1,115 1,313 1,347 1,378 1 462 1,244 1 297 1,362 1,460 1,583 Indonesia 2/ 1,882 2118 1,899 1,931 2,253 2,213 2,429 2,537 2,392 2,246 Korea 5,517 3,289 3,522 4,309 4,537 4,522 5,616 4,573 5,196 4,885 Malaysia 870 609 449 432 386 444 455 362 470 Nigeria 3/ 2,793 3,013 2,498 2,037 1 837 1,626 1,543 1,500 1,210 1,258 Philippines 1/ 1,560 1,319 867 1,141 1,176 1,579 1,565 1,389 1,130 888 Thailand 8 773 1,086 996 1,308 1,276 1,527 1,552 Turkey 1/ 863 1,041 1,274 1 379 1 894 1,968 1,955 1,928 1 828 1,959 Venezuela 1/ 2,602 2,806 2,779 2,810 1,644 1,458 1,360 1,367 1,300 1,384 Offshore Banking Centers 26,012 36,579 27,745 30,482 39,617 43,532 44,966 35,166 36,410 37,079 Oil Exporters 21 306 24,207 24,850 27,716 22,966 18 699 18,985 21,124 19 943 20,875 DRS Reporters 18,257 20,679 20,990 23,357 18,770 14,658 15,203 17,114 15,886 16,491 DRS Reporting Countries 73,421 75,586 81,782 83,136 78,659 70,814 73,827 75,903 74,558 77,252 */ Consolidated claims of French banks and their worldwide operations. **/ DRS Reporters. 1/ Also incfuded in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Banque de France, Bulletin Trimestriel. Table 10b DEVELOPING COUNTRIES CLAIMS OF BANKS IN FRANCE */ (in millions of US$) 1986 1987 1988 1989 1990 1991Q2 1991Q3 1991Q4 1992Q1 1992Q2 All Developing Countries 65,245 74,478 69,019 71,339 68,321 59,414 61,623 64,818 63,294 66,346 By Geographic Region Africa, South of theSahara 10,070 13,359 12,029 11,879 11,867 10,279 10,200 10,958 10,642 11,385 East Asia & Pacific 5,821 4,772 6,807 6,811 8,352 7,468 8,148 8,398 8,107 8,203 Europe& Central Asia 14,494 15,868 15,864 17,603 15,014 12,255 13,273 13,692 13,608 14,622 LatinAmerica&theCaribbean 19,376 20,608 18,625 18,819 15,271 14,134 14,011 14,618 14,152 14,886 North Africa & the Middle East 14,458 16,460 14,592 15,154 16,588 14,203 14,747 15,726 15,289 15,641 South Asia 1,027 3,411 1,102 1,072 1,229 1,076 1,245 1,426 1,495 1,608 Severely Indebted Middle-Income Countries **/ 27,941 31,439 28,877 31,018 27,815 25,062 25,962 26,719 25,582 26,753 Algeria 4,616 5,536 4,799 4,919 5,757 4,732 5,241 5,305 4,830 4,835 Angola 526 707 613 625 615 714 693 717 ABrenina 1,772 1,937 2,093 1,988 1,879 1,865 1,644 1,771 1,745 1,886 Bofie,'i.uia ~~~ ~~~~~~35 27 21 21 21 17 16 18 Brazil 8,291 8,548 7.824 7,745 7,416 6,739 6,749 7,105 6,891 7,113 Bulgaria 668 806 687 563 572 582 5471 563 Congo 1,066 1,145 847 789 723 639 613 664 608 673 Cote d'lvoire 1,902 2,181 1,895 1,972 1,887 1,612 1,723 1,798 1,597 1,806 Ecuador 4 137 150 128 144 144 93 80 85 Jamaica 48 40 31 23 16 14 12 10 12 Jordan 510 631 718 759 635 656 684 646 645 Mexico 4,192 4,634 3,665 3,891 1,438 1,471 1,438 1,449 1,588 1,659 Morocco 2,190 2,394 1,926 2,006 2,116 1,786 1,861 2,004 1,851 2,003 w Panama 1,879 2,448 1,594 3,064 2,194 2,239 2.495 2,463 2,473 2,640 Peru 548 655 664 616 663 605 580 586 Poland 1,640 1,740 1,316 1,251 1,260 1,069 1,242 1,192 1,172 1,269 Syria 346 367 333 298 253 290 272 263 254 244 Severely Indebted Low-Income Countries **/ 4,772 5,251 6,743 6,409 6,929 5 902 5 808 6,142 6,072 6,331 Moderately Indebted Low-Income Countries **/ 2,572 1,801 2,963 2,958 3,297 2,966 3,319 3,551 3,476 3,416 Moderately Indebted Middle-Income Countries **I 11,107 12,375 15,436 16,540 13,244 10,274 10,617 10,908 10,294 10,853 Other Selected Countries 12,711 12,275 15,694 15,512 16,140 14,184 15,156 15,554 14,979 15,309 Chile I/ .335 435 457 348 341 342 336 420 China 247 724 1,329 2,053 1,979 2,334 2,612 2,624 2,990 Colombia 1/ . 313 296 361 388 408 387 408 442 Egypt 3/ 2,422 2,761 2,485 2,502 2,643 2,205 2,210 2,215 2,023 2,097 tungar 1/72. 597 611 416 206 241 204 174 168 India 2/ 772. 735 735 802 713 785 915 994 1,053 Indonesia 2/ 1,541 1,801 1,549 1,560 1,754 1,617 1,793 1,847 1,740 1,580 Korea 1,754 1,996 1,921 1,697 1,841 1,562 1,914 1,868 1,856 1,742 Malaysia 669 . 491 364 354 180 177 158 114 150 Nig-eria 3/ 2,307 2,490 2,012 1,613 1,438 1,243 1,147 1,180 1,094 1,143 Philippines 1/ 853 975 1,022 842 1,013 907 873 723 633 414 Thailand 150 . 116 157 187 229 303 357 385 407 Turkey l/ .. 1,054 1,048 1,528 1,413 1,521 1,596 1,508 1,569 Venezuela 1/ 1,996 2,251 2,337 2,322 1,294 1,195 1,109 1,149 1,092 1,134 Offshore Banking Centers 12,504 20,288 21,772 27,233 35,028 30,385 29,774 31,001 29,994 34,813 Oil Exporters 19,165 21,291 20,963 22,309 19,367 15,867 16,193 17,283 16,563 17,278 DRS Reporters 16,496 18,504 18,282 19,688 16,274 12,921 13,422 14,524 13,782 14,458 DRS Reporting Countries 58,464 61,187 64,893 68,255 65,083 55,661 57,922 60,707 58,911 61,530 */ All resident banks. * DRS Reporters. 1/ Also incFuded in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Banque de France, Bulletin Trimestriel. Table 11 SWISS COMMERCIAL BANK CLAIMS ON DEVELOPING COUNTRIES (in millions of US$) 1985 1986 1987 1988 1989 1990 1991 AB Developing Countries 16,834 19,682 26,204 21,949 21,799 25,473 25,577 By Geographic Region Africa, South ofthe Sahara 1,388 1,649 3,423 1,771 1,882 2,178 2,180 East Asia & Pacific 1,175 1,601 1,851 1,613 1,818 2,161 2,975 Europe & Central Asia 4,236 5,390 7,247 7,152 7,567 8,411 7 470 Latin America & the Caribbean 6,794 6,883 7 414 6,745 6,379 7,870 8,195 North Africa & the Middle East 2,845 3,613 5,437 4,207 3,752 4,278 4,231 South Asia 397 546 832 461 402 574 527 Severely Indebted Middle-Income Countries */ 8,733 9,846 11,286 10,275 10,444 12,312 11,906 Algeria 209 226 392 296 301 338 307 Angola 25 24 33 55 73 97 63 ABretsa 1,276 1,329 1,512 1,428 1,207 1,414 1,471 Boliv,isa 15 17 20 30 10 12 12 Brazil 1,707 1,900 2,402 2,127 2,197 2,862 2,812 Bulgaria 222 368 450 483 444 482 445 Congo 9 3 2 3 2 2 4 Cote d'Ivoire 88 131 121 95 111 104 111 Ecuador 85 49 45 41 72 107 125 Jamaica 22 16 38 4 13 21 18 Jordan 32 46 80 142 89 93 93 Mexico 1,744 1,746 1,629 1,403 1,322 1,716 1,864 Morocco 85 114 130 123 103 151 162 Co Panama 2,559 3,266 3,810 3,452 4,005 4,331 3,782 Peru 205 93 88 191 84 108 142 Poland 407 477 502 372 379 449 479 Syria 43 41 33 32 35 23 15 Severely Indebted Low-Income Countries */ 1,692 2,091 2,182 2,007 1,966 2,143 2,16.4 Moderately Indebted Low-Income Countiries /65 82 1,043 728 703 976 808 Moderately Indebted Middle-Income Countries */ 3,798 4,430 5,800 5,464 5,794 6,492 5,684 Other Selected Countries 4,897 5,455 6,416 5,188 4,806 6,286 6,120 Chile 1/ 544 330 255 249 193 304 376 China 78 20 81 196 276 363 438 Colombia 1/ 148 203 158 190 194 181 168 Egypt 3/ 535 694 690 564 454 504 416 1fiungar 1/251 249 389 315 297 294 118 India 21 327 449 699 336 250 379 275 Indonesia 2/ 114 174 138 154 189 246 193 Korea 368 473 398 247 336 584 712 Malaysia 212 230 174 65 58 79 172 Niersia 3/ 279 325 466 364 311 320 311 Phil'ppines 1/ 199 185 270 185 199 178 144 Thailand 111 128 206 246 267 401 552 Turkey 1/ 1,075 1,277 1,780 1,479 1,202 1,865 1,579 Venezuela 1/ 655 718 713 597 579 587 665 Offshore Banking Centers 13,300 19,091 21,028 19,620 18,116 21,133 20,833 Oil Exporters 2,942 3,949 6,239 5,268 5,788 6,187 5,950 DRS Reporters 2,022 2,680 3,635 3,660 4,305 4,612 4,131 DRS Reporting Countries 18,353 21,410 25,5g9 22,821 23,062 27,053 26,129 */ DRS Reporters. 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Banque Nationale Suisse, Les Banques Suisses. Table 12 ITALIAN COMMERCIAL BANK CLAIMS ON DEVELOPING COUNTIS (in millions of US$) 1988 1989 1990 1991 1992Q1 1992Q2 1992Q3 All Developing Countries 13,642 14,656 16,444 17,666 17,685 18,264 18,086 By Geographic Region Africa, South of the Sahara 602 680 641 881 850 848 736 East Asia & Pacific 99 58 142 113 107 95 107 Europe & Central Asia 6,377 7,066 7,396 7,960 8,344 8,583 8,711 Latin America & the Caribbean 4,650 4,560 5,637 5,597 5,472 5,754 5,543 North Africa & the Middle East 881 962 858 884 785 826 729 South Asia 1,033 1,329 1,770 2,230 2,128 2,159 2,260 Severely Indebted Middle-Income Countries */ 5,623 5,407 7,007 7,255 6,774 7,095 6,850 Algeria Angola ArBeniia 1,249 1,054 1,710 1,520 1,479 1,568 1,584 Bolivia 5 5 4 4 4 5 Brazil 932 845 941 947 850 923 833 Bulgaria 234 323 431 567 548 585 640 Congo Cote d'9voire 28 22 43 311 9 22 24 Ecuador 98 135 156 152 183 133 185 Jamaica Jordan Mexico 1,415 1,442 1,728 1,903 1,780 1,869 1,734 Morocco 361 354 327 490 359 387 388 Panama Peru 1550 139, 118, 101, 116, 123, 871 Poland 1,150 1,089 1,548 1,539 1,446 1,480 1,370 Syria Severely Indebted Loow-Income Countries */ 113 202 446 850 841 826 712 Moderately Indebted Low-Income Countries */ Moderately Indebted Middle-Income Coumtries */ 1,457 1,470 6,000 6,511 7,000 7,176 7,398 Other Selected Countries 1,537 1,632 1,874 2,231 2,232 2,280 2,123 Chile 1/ 176 209 219 128 120 132 126 China Colombia 1/ 122 160 97 110 144 158 146 Egypt 3/ Eungay 1/ 558 471 365 353 271 278 232 India 27 Indonesia 2/ Korea Malaysia Nigeria 3/ 113 202 446 850 841 826 712 Phslippines 1/ 99 58 142 113 107 95 107 Thailand Turkey 1/ Venezuela 1/ 469 533 605 678 749 791 800 Offshore Banking Centers . 12,885 18,493 20,859 20,152 24,058 23,594 Oil Exporters 582 735 5,565 6,603 7,152 7,288 7,457 DRS Reporters 582 735 5,565 6,603 7,152 7,288 7,457 DRS Reportig Countries 8,251 8,399 14,461 15,435 15,557 16,105 15,826 */ DRS Reporters. 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Banca d'Italia, Bolletino Economico. Table 13 JAPANESE COMMERCIAL BANK CLAIMS ON DEVELOPING COUNTRIES */ (in millions of US$) 1987Q1 1987Q3 1988Q1 AU Developing Countries 73,751 75,199 82,711 By Geographic Region Africa, South of the Sahara 2,878 3,044 3,322 East Asia & Pacific 21,294 21,251 24,973 Europe & Central Asia 10,244 11,227 12,014 Latin America & the Caribbean 33,623 33,776 35,617 North Africa & the Middle East 4,053 4,021 4,216 South Asia 1,659 1,880 2,569 Severely Indebted Middle-Income Countries **/ 36,070 36,705 39,422 Algeria 2,695 2,690 2,852 Angola Argentina 5,227 4,982 5,611 Bolivia 3 2 3 Brazil 9,241 9,132 9,723 Bulgaria 952 1,132 1,172 Congo Cote d'Ivoire 154 156 160 Ecuador 801 791 879 Jamaica 17 17 18 Jordan 23 19 17 Mexico 10,495 11,058 11,372 Morocco 485 471 525 Panama 4,964 5,246 6,045 Peru 337 335 337 Poland 676 674 708 Syria Severely Indebted Low-Income Countries **/ 2,635 2,699 2,929 Moderately Indebted Low-Income Countries **/ 6,756 6,992 8,216 Moderately Indebted Middle-Income Countries **I 16,640 17,225 18,284 Other Selected Countries 32,384 32,638 37,224 Chile 1/ 1,532 1,570 1 647 China 2,470 3,132 4,578 Colombia 1/ 1,259 1,189 1,216 Egypt 3/ 17 20 20 Hungarv 1/ 3,228 3,391 3,643 India 2/ 1 409 1,626 2,190 Indonesia 2/ 5,214 5,289 5,841 Korea 5,720 4,777 5,413 Malaysia 2,949 2,838 3,041 Nigeria 3/ 272 304 297 Phdiipmines 1/ 2,340 2,282 2,583 Thailand 2,187 2,429 2,929 Turkey 1/ Venezuela 1/ 3,787 3,791 3,826 Offshore Banking Centers 12,673 15 070 17,447 Oil Exporters 11,993 12,550 13,084 DRS Reporters 11,475 12,011 12,587 DRS Reporting Countries 77,461 78,924 87,103 */ Consolidated claims of Japanese banks and their worldwide operations; Medium and long-term claims. **/ DRS Rep orters. I/ Also inc[uded in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Japan Center for International Finance. Table 14a DUTCH COMMERCIAL BANK CLAIMS ON DEVELOPING COUNTS */ (in millions of US$) 1987 1988 1989 1990 1991Q4 1992Q2 All Developing Countries 11,772 11,891 12,795 15,746 18,887 21,080 By Geographic Region Africa, South of the Sahara 961 972 1,085 1,004 994 1,177 East Asia & Pacific 1,262 1,256 1,517 2,093 4,021 4,604 Europe & Central Asia 2,467 2,886 2,953 3,441 4,012 4,140 Latin America & the Caribbean 4,739 4,584 4,968 6,823 7,280 8,611 North Africa & the Middle East 1,383 1,293 1,300 1,336 1,934 1,803 South Asia 960 900 971 1,050 647 746 Severely Indebted Middle-Income Countries **/ 4,329 4,295 4,222 5,474 6,093 6,948 Algeria 546 512 511 550 765 722 Angola Argentina 1,097 1,079 960 1,107 1,029 1,329 Bolivia Brazil 866 850 819 1,102 1,321 1,639 Bulgaria Congo Cote d'lvoire Ecuador 238 241 319 301 363 Jamaica Jordan Mexico 943 890 995 1,697 1,853 2,017 Morocco 4s- Panama 565 481 487 404 433 510 Peru Poland 312 245 210 295 392 368 Syria Severely Indebted Low-Income Countries **/ 333 265 491 356 174 339 Moderately Indebted Low-Income Countries **I 970 867 897 1,099 1,318 1,480 Moderately Indebted Middle-Income Countries **I 1,282 2,146 2,638 3,221 3,596 4,074 Other Selected Countries 1,699 1,914 2,459 3,433 4,387 5,621 Chile I/ .99 428 389 398 499 China 413 515 Colombia 1/ 277 346 nuyt 3/ 9295 305 2701 Indoeia 2/ Indonesia 2/ 970' 867' 897' 1,099. 1,318. 1,480. Korea . 467 826 Malaysia Nigeria 3/ 333 265 195 149 Philippines 1/ Thailand. 268 311 451 773 Turkey 1/ . 3 3 436 545 576 Venezuela 1/ 396 388 368 779 517 607 Offshore Banking Centers 9,021 8,416 10,715 13,944 10,492 12,002 Oil Exporters 2,160 2,283 2,292 2,482 3,155 3,223 DRS Reporters 2,160 2,283 2,292 2,482 2,705 2,846 DRS Reporting Countries 9,818 9,700 10,709 12,980 14,911 17,364 / Consolidated claims; Only partial country breakdown available. **/DRS Reporters. 1/ Also incfuded in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: De Nederlandsche Bank, Ouarterly Bulletin. Table 14b CLAIMS ON DEVELOPING COUNTRIES OF BANKS IN NETHERLANDS */ (in millions of US$) 1984 1985 1986 1987 1988 1989 1990 1991 1992Q2 1992Q3 1992Q4 All Developing Countries 5,733 6,155 6,896 9,486 8,174 7,807 8,139 9,069 9,722 10,293 9,764 By Geographic Region Africa, South of the Sahara 709 716 703 693 856 816 S37 769 East Asia & Pacific 871 878 791 981 1,294 1,425 1,461 1,431 Europe& Central Asia 827 1,120 1,301 2,792 2,065 2,218 2,398 2,611 2,751 2,904 2,592 Latin America & the Caribbean 4,328 4,416 5,040 3,379 3,266 2,998 3,104 3,250 3,688 3,907 3,749 North Africa & the Middle East 579 620 555 1,243 743 654 659 786 771 849 945 South Asia * 492 506 443 304 273 271 334 277 Severely Indebted Middle-Income Countries **/ 314 286 341 3,674 3,174 2,875 2,893 2,961 3,058 3,159 2,996 Algeria 488 364 301 277 199 169 164 139 Angola Argentina 905 768 743 557 688 674 694 682 Bolivia Brazil 482 463 433 536 493 644 676 672 Bulgaria 39 26 80 114 Congo Cote d'Ivoire Ecuador 221 212 212 196 193 208 199 Jamaica Jordan Mexico 642 575 498 534 531 611 699 611 Morocco Panama 755 536 508 547 544 469 403 408 Peru Poland 275 260 261 289 247 180 230 309 299 315 284 Syria Severely Indebted Low-Income Countries **/ 283 234 335 301 253 280 273 Moderately Indebted Low-Income Countries ** 768 644 610 655 666 592 659 601 Moderately Indebted Middle-Income Countries **/ 378 706 822 1,441 1,236 1,615 1,613 1,463 1,696 1,837 1,634 Other Selected Countries 97 156 217 1,820 1,425 1,419 1,539 1,416 1,606 1,731 1,678 Chile 1/ 51 74 64 90 105 131 China 45 69 55 34 Colombia 1/ . 124 129 111 Eyt 3/ Vr. 1/ 97 156 217 478 272 281 218 Indonesia 2/ 768 644 610 655 666 592 659 601 Korea . 89 221 235 209 Malaysia NiMaeria 3/ 282 233 167 122 Phil'ppines 1/ Thail .. 70 44 49 38 39 96 Turkey 1/ 209 281 250 280 277 Venezuela 1/ . . . 292 277 240 217 223 222 229 219 Offshore Banking Centers . . . 6,466 6,000 7,374 11,155 9,418 10,971 11,883 10,344 Oil Exporters 281 550 605 1,733 1,561 1,646 1,334 1,345 1,367 1,455 1,293 DRS Reporters 281 550 605 1,733 1,561 1,646 1,334 1,158 1,232 1,318 1,122 DRS Reporting Countries 3,444 3,965 6,896 8,376 6,968 6,940 7,150 7,011 7,838 8,160 7,791 5/ All resident banks; Only partial country breakdown available. *'/ DRS Reporters. 1/ Also inctuded in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-income Countries. Source: De Nederlandsche Bank, Ouarterly Bulletin. Table 15a FUNDS RAISED ON INTERNATIONAL CAPITAL MARKETS (in millions of US$) 1988 1989 1990 1991 1991Q4 1992Q1 1992Q2 1992Q3 1992Q4 1993QI A. All Developing Countries 31,622 25,862 32,144 44,515 14,092 11,537 9,414 8,961 10,876 14,817 Bonds 8,687 6,899 7,328 12,864 4,010 5,342 4,640 5,043 6,401 10,416 International 5,794 4,345 5,380 9,228 2,833 3,478 3,774 2,769 3,635 6,608 Foreign 2,893 2,554 1,948 3,636 1,177 1,864 866 2,273 2,766 3,809 Loans 22 935 18,962 24,816 31,651 10,082 6 196 4 774 3,918 4,475 4,401 Intemational 19,706 17,900 24,116 31,420 10,082 6,081 4,765 3,910 4,348 4,376 Foreign 3,229 1,213 701 231 115 9 8 114 25 By Geographic Region Africa, South of the Sahara 170 258 871 614 60 619 795 45 139 East Asia & Pacific 8,591 8,273 14,808 17,559 3,697 3,730 3,225 4,510 5,223 5,096 Europe& Central Asia 11,590 10,479 10,257 7,311 2,618 1 935 2 194 2 535 3,013 5,930 Latin America & the Caribbean 7,284 2,051 4,242 8 424 1,820 2,318 2,990 1,709 2,501 3,576 North Africa & the Middle East 1,392 2,403 247 10,361 5,861 2,920 110 77 216 South Asia 2,595 2,397 1,720 246 36 14 100 86 Severely Indebted Mliddte-Income Countries */ 6,503 1,794 2,517 7,605 1,510 1,718 2,689 1,749 2,151 3,377 Algeria 795 397 61 61 Angola 5 115 325 Argentina 14 . 725 425 215 380 684 250 395 Bolivia Brazil 5,200 100 1,230 400 770 1,525 355 360 820 Bulgaria 194 580 Congo Cote d'Ivoire Ecuador Jamaica 30 Jordan 165 Mexico . 310 2,350 5,554 623 733 450 650 1,541 2,162 Morocco 130 6 52 . 60 Panama 238 Peru Poland 163 5 9 Syria Severely Indebted Low-income Countries */ 40 652 385 105 30 . . 96 Moderately Indebted Low-Income Countries */ 3 603 5 098 7 182 5 773 731 615 605 1 101 521 426 Moderately Indebted Middle-Income Countries */ 8,889 8,245 9,558 4,798 1,404 1,517 2,178 1,656 2,291 3,096 Other Selected Countries 17,205 16,293 20,476 21,059 4,596 4,943 5,228 6,232 7,087 7,990 Chile 1/ 151 . 285 . . . 100 . 250 China 3,846 1,761 1,514 2,595 872 659 719 924 1,742 2,044 Colombia 1/ 1,000 1,641 . 200 Eypt 3/ . 500 Hi?ugary 1/ 1,016 1 709 987 1,378 388 402 187 240 618 1,418 India 21 2,482 2,047 1,242 150 . 14 100 86 Indonesia 2/ 1,008 2 701 5,462 5,527 695 600 505 1,015 521 426 Korea 1,533 1,322 3,982 6,094 1,342 1,280 990 1,612 1,322 1,057 Malaysia 1,133 541 730 412 50 166 511 401 193 447 Nigeria 3/ Philippines I/ . . 715 . . IS Thaiiand 1,021 1,059 1,465 1,842 248 707 436 557 1,018 921 Turkey 1/ 3,187 3,013 2 498 2,280 644 515 1,246 1,396 1,422 1,330 Venezuela 1/ 828 . 1,595 581 356 600 435 . . 198 Offshore Banking Centers 1,103 4,038 4,634 2,491 467 403 855 157 643 1,786 Oil Exporters 4,485 3,560 5,037 5,443 718 3,500 760 . 100 414 DRS Reporters 4,452 2,655 4,961 943 718 600 760 . 100 259 B. OECD Countries 324,999 341,669 308,764 357,391 93,600 100,522 99,035 101,596 91 746 140,728 C. Multilateral Institutions 10 517 12,932 15,418 14,700 3,563 5,978 4,412 4,218 6,266 7,930 D. Other 1,128 555 644 2,187 289 157 1,019 320 466 184 Grand Total */ 369,370 385,055 361,604 421,284 112,011 118,597 114,735 115,251 109,997 165,444 1/ Also included in Moderately Indebted Middle-IncomeCountries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. */ DRS Reporters. **/ (A+B+C+ D+Offshore banking centers). Source: Organization for Economic Cooperation and Development, Financial Statistics Monthly, Part 1. Table 15b LOANS RAISED ON INTERNATIONAL CAPITAL MARKETS (in millions of USS) 1988 1989 1990 1991 1991Q4 1992Q1 1992Q2 1992Q3 1992Q4 1993Q1 A. All Developing Countries 22,935 18,962 24,816 31,651 10,082 6,196 4,774 3,918 4,475 4,401 International 19,706 17,900 24,116 31,420 10,082 6,081 4,765 3,910 4,348 4,376 Foreign 3,229 1,213 701 231 . 115 9 8 114 25 By Geographic Region Africa, South of the Sahara 170 258 871 275 60 690 45 139 East Asia & Pacific 6 706 6,759 12,217 14,154 3,029 2,360 2,296 2,780 3,539 3,588 Europe & Central Asia 6,792 5,921 7,015 2,987 1,081 467 1,123 928 502 529 Latin America & the Caribbean 6,447 2,051 3,269 3,776 15 435 455 20 296 68 North Africa & the Middle East 939 2 244 247 10,361 5,861 2,920 110 60 216 South Asia 1,881 1,729 1,197 96 36 14 100 86 Severely Indebted Middle-Income Countries */ 5,988 1,305 1,747 3,539 61 435 484 60 46 Algeria 362 238 61 61 Angola 5 . 115 325 Ary,entina 14 Brazil 5,200 100 18 150. 30 Bulgaria 112 250 Congo Cote d'Ivoire Ecuador Jamaica 30 Jordan 165 Mexico 310 1,580 3,424 435 16 Morocco 130 6 52 60 Panama 238 Peru Poland 163 5 9 Syria Severely Indebted Low-Income Countries */ 40 652 385 105 30 96 Moderately Indebted Low-Income Countries */ 2,668 4,255 5,834 5,329 697 581 527 722 401 396 Moderately Indebted Middle-Income Countries */ 5,822 5,214 7,449 2,339 282 237 1,312 568 583 372 Other Selected Countries 11,872 12,171 15,552 15,225 2,871 2,294 3,533 3,414 3,694 3,909 Chile 1/ 151 285 100 250 China 2,935 1,610 1,514 2,332 754 509 533 539 1,189 1,633 Colombia 1/ 1,000 1,641 200 Egypt 3/ . 500 tHunga1/ 200 765 40 141 37 135 40 49 India 27/ 1,768 1,379 719 14 100 86 Indonesia 2/ 787 2,526 4 637 5,233 661 567 427 635 401 396 Korea 1,403 994 2,466 3,647 922 394 400 747 482 415 Malaysia 772 112 530 222 50 166 511 401 193 447 Nigeria 3/ Philippines 1/ 715 Thailand 759 827 1,415 1 811 217 407 361 457 847 647 Turkey 1/ 2,027 1,817 1,838 1,640 267 200 762 508 333 255 Venezuela 1/ 70 . 1,392 . . . 205 . . 68 Offshore Banking Centers 778 3,839 4,181 2,380 467 403 855 157 643 1,483 Oil Exporters 2,882 2,509 4,536 4,861 361 2,900 530 . . 284 DRS Reporters 2,849 1,604 4,460 361 361 530 . . 129 B. OECD Countries 115,069 103,523 101,951 88,312 32,366 19,262 29,295 33,238 19,628 19,894 C. Multilateral Institutions 2,498 2,614 443 550 77 . 316 251 444 D. Other 978 365 241 803 35 67 657 100 210 34 Grand Total **/ 142,258 129,304 131,632 123,696 43,027 25,927 35,897 37,664 25,401 25,811 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. */ DRS Reporters. **/ (A+B+C+D+Offshorebanking centers). Source: Organization for Economic Cooperation and Development, Financial Statistics Monthly. Part I. Table 16 SECONDARY LOAN PRICES 1/ (in percent of face value) 1989 1990 1991 1991 1991 1992 1992 1992 1992 1993 1993 Q4 Q4 Q2 Q3 Q4 Ql Q2 Q3 Q4 Q1 Q2 Severely Indebted Middle-Income Coumtries* 25 25 33 37 35 36 38 38 38 40 46 Algeria 81 80 84 86 91 83 87 92 91 95 100 Angola 28 25 20 20 20 24 25 22 20 18 Argentina a/ 13 20 27 39 38 42 50 50 48 50 53 Bolivia 11 11 11 9 11 10 12 15 16 16 16 Brazil b/ 22 25 34 36 31 36 33 33 30 30 39 Bulgaria 8 15 21 20 18 17 16 13 14 21 Congo 15 8 7 4 4 4 5 6 6 6 8 Cote d'lvoire 6 3 7 8 9 8 9 7 5 6 8 Ecuador cU 14 20 22 26 24 22 30 27 28 27 32 Jamaica 42 42 70 75 76 74 74 74 71 76 79 Jordan . 25 22 25 30 30 34 34 35 35 35 Mexico d/ 36 46 56 60 62 63 65 66 65 70 73 Morocco 38 39 48 53 47 42 46 47 47 52 67 Panama 13 13 13 27 21 28 32 33 29 30 32 Peru 6 4 7 17 13 14 15 15 19 24 32 Poland e/ 18 16 29 26 23 20 23 26 25 28 32 Other Selected Countries Chile 59 74 88 88 90 88 89 91 91 92 93 Co0ta Rica g/ 17 34 47 52 51 51 59 63 60 64 68 Egypt 40 43 45 45 46 46 47 45 45 46 46 onduras 20 19 20 20 27 27 31 33 35 31 31 Hungary 98 85 73 65 Nicaragua 1 4 4 9 8 8 9 7 7 8 10 Philippines h/ 49 37 50 54 51 51 59 57 57 64 68 Senegal 39 32 42 41 43 38 37 23 Uruguay i/ 50 57 59 70 75 70 70 75 75 65 72 Venezuela f/ 34 50 62 70 68 58 63 62 57 59 68 1/ Bid Price. a/ ORA (1987 Guaranteed Refinancing Agreement). Prices after March 1993 refer to par bonds offered under Brady Initiative. b/ MYDFA (Multi-Year Deposit Facility Agreement). c/ MYRA (Multi-Year Refinancing Agreement). d/ Prices after February 1990 refer to par bonds offered under Brady Initiative. e/ DDRA (1988 Debt Deferral & Restructured Agreement). f/ Prices after August 1990 refer to par bonds offered under Brady Initiative. I/ Prices after May 1990 refer to Series A par bonds offered under Brady Initiative. / Public Sector Restructured including Central Bank of the Philippines. Prices after January 1990 refer to restructured loans offered under Brady Initiative. iU Prices after December 1990 refer to par bonds offered under Brady Initiative. */ Weighted by commercial bank debt outstanding (Syria is not included in these calculations). Sources: Salomon Brothers, LDC Debt Report, Intemtional Financing Review, and IECDI. Table 17 Foreign Direct Investment (Net) to Developing Countries (In millions of US$) 1986 1987 1988 1989 1990 1991 1992p/ DRS Reporting Countries 9,878 13,735 19,741 23,322 24,317 35,009 38,252 By Geographic Re 'on: Africa, South of te Sahara 719 1,392 1,044 2,476 669 1,746 1,280 East Asia & Pacific 3,546 4,485 7,593 9,071 10,702 13,639 15,060 Europe& Central Asia 447 664 1,393 2,790 3,770 5,734 5,650 Latin America & the Caribbean 3,569 5,818 8,012 7,135 7,732 12,806 13,778 North Africa & the Middle East 1,455 1,178 1,464 1,619 1,156 723 2,064 South Asia 141 196 234 231 289 361 420 Memo Item Eastern Europe 16 12 15 268 300 2,393 2,700 Severely Indebted Middle Income Countries 2,824 5,072 7,070 5,970 5,808 10,318 11,988 Algeria 5 4 13 12 . 12 160 Angola 234 119 131 200 (335) 665 100 Argentina 574 (19) 1,147 1,028 2,008 2,439 2,495 Bolivia 10 38 (10) (24) 27 52 30 Brazil 320 1,225 2,969 1,267 901 1,600 2,000 Bulgaria 4 4 . 50 Congo 22 43 9 Cote d'lvoire 71 88 52 41 48 46 28 .1S Ecuador 70 75 80 80 82 85 85 ON Jamaica (5) 53 (12) 57 138 127 41 Jordan 23 40 24 (1) 38 (12) 4 Mexico 1,523 3,246 2,594 3,037 2,632 4,762 6,200 Morocco 1 60 85 167 165 320 350 Panama (62) 57 (52) 36 (30) (62) Peru 22 32 26 59 41 (7) 95 Poland 16 12 15 11 89 291 350 Syria Severely Indebted Low-Income Countries 1,322 1,792 1,699 3,330 1,482 1,137 2,101 Moderately Indebted Low-Income Countries 442 633 855 957 1,399 1,858 2,060 Moderately Indebted Middle-Income Countries 1,549 1,644 2,756 2,738 2,905 6,416 6,341 Other Selected Countries 5,762 6,617 9,756 13,608 13,807 19,779 20,872 Chile 1/ 116 230 141 184 249 576 640 China 1,875 2,314 3,194 3,393 3,487 4,366 5,022 Colombia 1/ 674 319 203 576 500 457 500 Egypt 3/ 1,217 948 1,190 1,250 734 253 1,200 Hungary 1/ . . . . . 1,462 1,200 India 2/ Indonesia 2/ 258 385 576 682 1,093 1,482 1,602 Korea 435 601 871 758 715 1,116 950 Malaysia 489 423 719 1,668 2,333 4,073 3,608 Nigeria 167 603 377 1,882 588 712 675 Philippines 1/ 127 307 936 563 530 544 675 Thailand 263 352 1,105 1,776 2,444 2,014 2,700 Turkey 1/ 125 115 354 663 684 810 1,100 Venezuela 1/ 16 21 89 213 451 1,914 1,000 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. p/ Projection. Source: World Bank Debtor Reporting System. Table 18 IMF FINANCING ARRANGEMENTS 1/ (in millions of SDRs) Member Date of Expiration Amount Undrawn Arrangement Date Agreed Balance Stand-by arrangements 4,293.49 2,485.72 Albania 08/26/92 08/25/93 20.00 6.88 Brazil 01/29/92 08/31/93 1,500.00 1,372.50 Costa Rica 04/19/93 02/18/94 21.04 21.04 Czech Republic 03/17/93 03/16/94 177.00 107.00 El Salvador 05/10/93 03/04/94 34.55 34.55 Estonia 09/16/92 09/15/93 27.90 15.11 Guatemala 12/18/92 03/17/94 54.00 54.00 India 10/31/91 06/30/93 1,656.00 231.00 Jordan 02/26/92 08/25/93 44.40 11.10 Kyrgyzstan 05/12/93 04/11/94 27.09 17.42 Latvia 09/14/92 09/13/93 54.90 19.83 Lithuania 10/21/92 09/20/93 56.93 26.45 Panama 02/24/92 12/23/93 93.68 58.83 Poland 03/08/93 03/07/94 476.00 476.00 Uruguay 07/01/92 06/30/93 50.00 34.03 Extended arrangements 4,838.98 2,280.37 Argentina 03/31/92 03/30/95 2,483.15 1,182.16 Hungary 02/20/91 02/19/94 1,114.00 556.77 Jamaica 12/11/92 12/10/95 109.13 100.13 Peru 03/18/93 03/17/96 1,018.10 375.41 Zimbabwe 09/11/92 09/10/95 114.60 65.90 SAF arrangements 83.23 59.45 Comoros 06/21/91 06/20/94 3.15 2.25 Ethiopia 10/28/92 10/27/95 49.42 35.30 Rwanda 04/24/91 04/23/94 30.66 21.90 ESAF arrangements 2,091.29 731.55 Bangladesh 08/10/90 09/13/93 345.00 - Benin 01/25/93 01/24/96 46.95 39.12 Bolivia 07/27/88 09/10/93 163.26 13.61 Burkina Faso 03/31/93 03/30/96 48.62 39.78 Burundi 11/13/91 11/12/94 42.70 23.49 Equatorial Guinea 02/03/93 02/02/96 12.88 10.12 Guinea 11/06/91 11/05/94 57.90 40.53 Guyana 07/13/90 12/20/93 81.52 8.86 Honduras 07/24/92 07/23/95 40.68 33.90 Lesotho 05/22/91 05/21/94 18.12 7.55 Malawi 07/15/88 07/15/93 66.96 5.58 Mali 08/28/92 08/27/95 60.96 40.64 Mauritania 12/09/92 12/08/94 33.90 25.43 Mozambique 06/01/90 09/30/93 100.65 15.25 Nepal 10/05/92 10/04/95 33.57 27.98 Sri Lanka 09/13/91 09/12/94 336.00 168.00 Tanzania 07/29/91 07/28/94 181.90 96.30 Uganda 04/17/89 11/24/93 219.12 19.92 Zimbabwe 09/11/92 09/10/95 200.60 115.50 TOTAL 11,306.99 5,557.09 1/ As of May 31, 1993. Source: IMF. STATISTICAL APPENDIX QUARTERLY East Asia and Pacific Trinidad & Tobago Sudan Rwanda American Samoa Virgin Islands (Br.) Swaziland Sri Lanka R EVI EW Brunei Uruguay Tanzania Togo Cambodia Venezuela Togo Yemen, Rep. of GROUPS China Uganda Fiji North Africa and the Zaire Moderately Indebted French Polynesia Middle East Zambia Middle-Income Countries Guam Algeria Zimbabwe (MIMICS) Indonesia Egypt, Arab Rep. of Cameroon Kiribati Iran, Islamic Rep. of Severely Indebted Chile Korea, D.P.R. of Iraq Middle-Income Countries Colombia Korea, Rep. of Israel (SIMICS) Costa Rica Lao P.D.R. Jordan Algeria Dominican Rep. Malaysia Kuwait Angola Former Soviet Union Marshall Islands Libya Argentina Gabon Micronesia, Fed. Sts. Morocco Bolivia Guatemala Mongolia Oman Brazil Hungary Myanmar Other oil exporters Bulgaria Papua New Guinea New Caledonia Qatar Congo Philippines Papua New Guinea Saudi Arabia C6te d'Ivoire Senegal Philippines Syrian Arab Rep. Ecuador Tunisia Solomon Islands Tunisia Jamaica Turkey Thailand United Arab Emirates Jordan Uruguay Tonga Yemen, Rep. of Mexico Venezuela Viet Nam Morocco Western Samoa South Asia Panama Offshore Banking Afghanistan Peru Centers Europe and Central Asia Bangladesh Poland Bahamas Albania Bhutan Syrian Arab Rep. Bahrain Bulgaria India Barbados Cyprus Maldives Severely Indebted Low- Bermuda Czech Republic Nepal Income Countries Cayman Islands Former Soviet Union Pakistan (SILICS) Hong Kong Gibraltar Sri Lanka Burundi Lebanon Greece Egypt, Arab Rep. of Liberia Hungary Sub-Saharan Africa Equatorial Guinea Macao Isle of Man Angola Ethiopia Neth. Antilles Malta Benin Ghana Panama Poland Botswana Guinea-Bissau Singapore Portugal Burkina Faso Guyana Vanuatu Romania Burundi Honduras West Indies (Br.) Slovakia Cameroon Kenya Turkey Cape Verde Lao P.D.R. Oil Exporters Former Yugoslavia Central African Rep. Liberia Algeria Chad Madagascar Angola Latin America and the Comoros Mali Brunei Caribbean Congo Mauritania Congo Antigua & Barbuda C6te d'Ivoire Mozambique Former Soviet Union Argentina Djibouti Myanmar Gabon Belize Equatorial Guinea Nicaragua Iran, Islamic Rep. of Bolivia Ethiopia Niger Iraq Brazil Gabon Nigeria Libya Chile Gambia, The Sao Tome & Principe Nigeria Colombia Ghana Sierra Leone Oman Costa Rica Guinea Somalia Qatar Cuba Guinea-Bissau Sudan Saudi Arabia Dominica Kenya Tanzania Trinidad & Tobago Dominican Rep. Lesotho Uganda United Arab Emirates Ecuador Liberia Zaire Venezuela El Salvador Madagascar Zambia Grenada Malawi Oil Exporters DRS Guadeloupe Mali Moderately Indebted Reporters Guatemala Mauritania Low-Income Countries Algeria Guiana (Fr.) Mauritius (MILICS) Angola Guyana Mayotte Bangladesh Congo Haiti Mozambique Benin Former Soviet Union Honduras Namibia Central African Rep. 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