FIN AN HAL February OFoW ANDTHE DEVELOPING COUNTRIES vol. S I.D2 Bond volumes fall again Loan commitments remain strong Stock markets tumble 20% New equity issues fall by half Rescue packages boost multilateral lending PIOI W ii Contents and summary The East Asian financial crisis reduced financial eral guarantees. Project finance volumes also flows to most developing regions in the fourth remained strong, up $4 billion from the third quarter of 1997. In late October the decline in the quarter. Credit rating agencies downgraded the Hong Kong stock market was followed by drops East Asian countries most affected by the crisis, in equity prices worldwide and sharp increases in awarded an investment grade rating to Latvia, secondary market spreads on developing country and upgraded Bulgaria and Lithuania. Stock mar- sovereign debt. Most developing countries expe- kets fell 20% in dollar terms during the fourth rienced a deterioration in access to the bond quarter, with declines of 37% inAsia and 12% in market, although loan commitments rose. Bond Latin America. The volume of new equity issues issues fell $9 billion, from $31 billion in the third fell from $6.4 billion in the third quarter to $3.7 quarter. Argentina had the only sovereign issue billion in the fourth, as the deterioration in mar- in the last two months of the year. Secondary mar- ket conditions led many companies to postpone ket spreads on sovereign bonds more than dou- or cancel equity issues. In official flows, interna- bled in East Asia and were up 75% in Latin tional rescue packages to Indonesia, the Repub- America. Loan commitments rose from $37 bib lic of Korea, and Thailand boosted multilateral lion in the third quarter to $48 billion in the commitments to $54 billion in the fourth quarter, fourth as borrowers increased the use of collat- up from $6.7 billion in the third. International lending and capital markets S Bonds 5 BOND VOLUMES FALL 5 EAST ASIAN BOND VOLUMES PLUMMdET China issues global bond. Indonesian offshore companies issue. Few issues from Malaysia, Philip- pines, and Thailand. 6 BOND VOLUMES FRom EUROPE AND CENTRAL ASIA STABLE Estonian fund issues. Polish telecommunications firm issues. Russia taps market in midst of turmoil. Turkey issues in deutsche marks. 6 BOND VOLUMES COLLAPSE IN LATIN AMERICA Argentina government issues. Brazil's private sector issues. Mexico raises $0.9 billion. 7 LEBANON IS THE ONLY ISSUER FROM THE MIDDLE EAST AND NORTH AFRICA 7 SPREADS CONTINUE TO RISE 8 FIXED-RATE ISSUES CONTINUE TO DOM[INATE 8 Cornrnercc i bank mnans 8 LOAN VOLUME RISES IN FOURTH QUARTER 9 LOANS TO SuB-SAnARAN AFRICA INCREASE South Africa accounts for 60% of the region's borrowing. Public sector companies borrow. Liberia and Seychelles tap market. 10 LOAN VOLUMES To EAST ASIA FALL China has the region's largest volumes. Indonesian and Malaysian private sectors borrow. Philip- pines taps markets. Thai public sector borrows. Vietnam borrows for highways. 6 INDIA IS SOUTH ASIA'S SOLE BORROWER FinancialFlows and theDeveloping Countaies Contents and summary 11 LOANS TO EUROPE AND CENTRAL ASIA RISE TO $10.2 BILLION Loans to Russia surge. Turkish private sector borrows. Slovak public sector borrows. Other countries borrow. 12 LOANS TO LATIN AMERICA AND THE CARIBBEAN TOTAL $13.6 BILLION Mexico remains the region's largest borrower. Brazil borrows for trade financing. Argentina's private sector borrows. Colombia has its strongest quarter in 1997. Other countries borrow. 13 LOANS TO THE MIDDLE EAST AND NORTH AFRICA INCREASE SHARPLY 13 TERMS OF BORROWING IMPROVE 13 PROJECT FINANCING RISES IN FOURTH QUARTER China borrows for two power plants. Indonesian project finance totals $0.8 billion. Loan arranged for Malaysian train station. Philippine power companies borrow. Thailand has one transaction. India has two project finance deals. Croatian company finances highway construction. Romanian :elephone company borrows. Russian engineering company borrows. Slovak Republic and Poland borrow for telecommunications. Istanbul metro project borrows. Volume for Latin America falls to half the third-quarter level. Bahrain borrows $500 million. Moroccan company borrows for thermal power. Joint ventures from the Middle East enter the market. 16 Market creditworthiness 16 MOODY'S RATES LATVIA, BULGARIA, AND LITHUANIA Moody's awards an investment grade rating to Latvia. Moody's upgrades Bulgaria. Lithuania recieves an upgrade. 17 EAST ASIAN COUNTRIES DOWNGRADED Thailand's ratings slip. Indonesia, Malaysia, and the Republic of Korea also downgraded. 17 S&P REVISES ITS OUTLOOK FOR SEVERAL COUNTRIES Four countries move from positive to stable. Mexico revised from stable to positive. Equity portfolio and foreign direct investment 18 Emerging stock markets 18 IFC's INVESTABLE COMPOSITE INDEX (IFCI) DROPS 20% IN FOURTH QUARTER 18 ASIAN MARKETS DOWN 37% IN FOURTH QUARTER East Asian markets suffer sharp declines. China's market drops 36%. India's market falls. 18 LATIN AMERICAN MARKETS DOWN 12% 19 MARKET PERFORMANCE MIXED IN EASTERN EUROPE, THE MIDDLE EAST, AND AFRICA 9 New equities 19 NEW EQUITY ISSUES DECLINE IN FOURTH QUARTER 19 ISSUES FROM ASIA DROP 48% FROM THIRD QUARTER Indonesian companies raise $453 million. China issues $244 million in new equity. India raises $419 million 20 ISSUES FROM LATIN AMERICA DROP TO $1.1 BILLION Argentina raises $831 million. Chilean airline issues. 20 EUROPE, THE MIDDLE EAST, AND AFRICA ISSUE NEW EQUITIES WORTH $1.4 BILLION 20 NEW FUNDS TARGET THE MIDDLE EAST, AFRICA, SOUTH ASIA, AND RUSSIA February 998 Contents and summary 21 Foreign direct investment and privatization 21 CAR MANUFACTURERS INVEST IN EASTERN EUROPE 21 CZECH GOVERNMENT TRIES TO LURE GENERAL MOTORS 21 EAST ASIAN GOVERNMENTS CHANGE RULES TO ATTRACT FOREIGN INVESTMENT 21 MAJOR PRIVATIZATION DEALS CONCLUDED DURING THE FOURTH QUARTER 21 Hungary, Indonesia. Kuwait, Libya, United Arab Emirates, Jordan, China, Poland, Brazil, and Venezuela highlighted. Official flows 23 Multilateral flows 23 RESCUE PACKAGES BOOST MULTILATERAL LENDING 23 IMF APPROVES SUPPLEMENTAL RESERVE FACILITY 23 WORLD BANK COMMITMENTS INCREASE 23 COMrrMENTS BY OTHER MULTILATERALS RISE 23 Bilateral ODA and export credits 23 DONORS PLEDGE CONTRIBUTIONS TO EAST ASIA RESCUE PACKAGES 23 US ExPoRT-IMPORT BANK APPROVES WORKING CAPITAL GUARANTEE FINANCING 24 US APPROVES REAUTHORIZATION OF EXPORT-IMPORT BANK 24 EXPORT-IMPORT BANK OF JAPAN LENDS TO CHINA AND CHILE Debt relief update 24 Official creditors 24 PARIS CLUB CREDITORS SIGN TWO DEBT RESTRUCTURING AGREEMENTS 24 Commercial bank creditors 24 VIrrNAM RESTRUCTURES DEBT 25 TOGO AND BOSNIA AND HERZEGOVINA REACH AGREEMENT ON COMMERCIAL BANK DEBT Statistical appendix 26 World Bank commitments m 27 New bond issues N 28 New loan issues N 30 New equity issues a 31 Bank and trade-related nonbank claims 0 32 Commercial bank claims on developing countries * 33 Commercial bank claims on developing countries, by country of origin U 37 Maturities of bank claims on developing countries a 38 Funds raised on international capital markets a 39 Sec- ondarv market debt (bid) prices 40 Emerging stock markets a 41 Country groups Note: Tables on external debt, aggregate long-term resource flows, and foreign direct investment flows are published only as data are updated. Financial Flows and the Developing Countries 0 International lending. and capital markets Bonds Bond issues from East Asia and the Pacific, 1997 Bond volumes fall - Year-on-year percentage change Ill Bond issues by developing countries fell to $9 bil- lion in the fourth quarter of 1997. more than 70% below the level in the third quarter and the lowest quarterly level since the first quarter of 1995 Bond issues from (table 1). More than 70% of the issues in the East Asia and the fourth quarter came before the turbulence in s global stock markets at the end of October. - Pacific were more than 75% lower East Asian bond volumes plummet t I than in the third At $1.3 billion, bond issues from East Asia and the (Quarter Pacific were more than 75% lower than in the QI Q2 Q3 Q4 third quarter (figure 1). Soutce: Euromoney Bondware and World Bank. CHINA ISSUES GLOBAL BOND. China issued a lion for 30 years, priced at 115 basis points over US global bond in October, the country's only issue Treasuries. in the quarter. The bond was issued in two tranches. The first was a $400 million, 5-year issue INDONESIAN OFFSHORE COMPANIES ISSUE. Two priced at 68 basis points over US Treasury bonds. bonds were issued by offihore-listed Indonesin The spread widened to around 90 basis points in companies: a $178 million, asset-backed, floating- the secondary market in the days following the rate note with a maturitv of almost 4 years paying issue (figure 2). The second tranche was $100 mil- 17 basis points over 1-month LIBOR, and a 15-year convertible note issued by a private finance Bond issues by type of borrower company. US$ mllions 1997 1997 1996 1997 Q3 Q4 - - Weekly secondary market spreads All developing countnes :74.630 94.731 30,793 8.871 on China's October 1997 global Private 22.933 34.578 12,620 4.020 bond issue Sub-Saharan Africa 250 40 0 0 Basis paints East Asia and the Pacific 7.872 11.788 3.660 519 SouthAsia 672 1.376 751 0 150 Europe and Central Asia 559 3.852 828 1.601 30-y Latin Amenca and Caribbean 13.421 16.847 7.380 1.600 Middle East and North Africa 1 60 675 0 300 Soveregn .41.166 45,741 12.921 3.972 Sub-Saharan Afnca i 782 343 0 0 120 East Asia and the Pacific . 3.459 2.612 500 500 South Asia 150 500 0 0 Europe and Central Asia 9.003 10.004 1,423 1.25 I Latin America and Canbbean :27.345 30.901 10,491 1.821 Middle East and North Africa 428 1.380 507 400 Other public 10.530 14.412 5.252 879 Sub-Saharan Africa, 140 191 157 0 East Asia and the Pacific 4.241 4.621 1.279 333 South Asia 220 825 400 0 Europe and Central Asia . 230 1.761 850 167 6C Latin America and Caribbean 5.449 6.765 2.465 379 October November December January Middle East and North Affca 250 250 100 0 24 28 26 16 Source: Eurononey Bobdware and World Bank. Source: Euromoney Bondware and World Bank. Februai,yI998 International lending and capital markets FEW ISSUES FROM MALAYSIA, PHILIPPINES, AND ure 3). In 1996 the government borrowed funds THAILAND. Malaysia's state-owned oil and gas cor- for 5 years at a spread of 345 basis points. Two poration, Petroliam Nasional Bhd, borrowed $333 offshore-listed private companies, Moscnegro million in the Samurai market (the country's only Finance BV and Tatneft Finance plc, issued 5-year bond issue in the quarter). The issue was placed bonds that were heavily over subscribed, resulting in three tranches with maturities of 5, 7, and 10 in competitive spreads of 250 basis points and 310 years paying 51, 54, and 74 basis points over the 6- basis points over comparable benchmarks. LUK- Bondv"olumes month yen LIBOR. A private corporation from interFinance BNissueda$350 million convertible ollapse in Latin the Philippines issued a $125 million, 1-year float- bond exchangeable into shares of LUKoil, a blue- ing-rate note in mid-November at a cost of 95 basis chip private company. America points over 6-month LIBOR. A private sector com- pany in Thailand, Advance Agro Public Co. Ltd., TURKE ISSUES IN DEUTSCHE MARKS. In Octo- issued a $111 million, fixed-rate, 10-year bond berTurkeyissuedaDM 1.5 billion ($851 million), priced at a sky-high spread of 911 basis points over 10-year bond priced at 275 basis points over Bunds US Treasuries. (figure 4). The issue, Turkey's longest maturity in the deutsche mark sector, was increased from an Bond volumes from Europe and original DM billion. In mid-November a public Central Asia stable bank rapped the market for $150 million with a 3- year maturity at a margin of 300 basis points over Bond volume from Europe and Central Asia was US Treasuries. $3 billion, about the same as in the third quarter. Almost 60% of the issue came from offshore-listed Bond volumes collapse in Latin America companies. Bond volumes from Latin America and the ESTONIAN FUND ISSUES. The Estonian Com- Caribbean tumbled to about $4 billion, from more pensation Fund issued floating-rate notes with a 2- than $20 billion in the third quarter (figure 5). year maturity and a spread of 110 basis points over 3-month LIBOR. International markets provided ARGENTINA GOVERNMENT ISSUES. Most of the an alternative to high interest rates and low liq- region's sovereign issues came from Argentina. A uidity in the domestic market as well as an oppor- tunity to capitalize on a wider investor base. nCGRE Primary market spreads for dollar- denominated issues from Russia, POLISH TELECOMMUNICATIONS FIRM ISSUES. 1996-97 Poland's Netia Holdings BV, the finance arm of a Basis point private telecommunications company, issued 10- year global and Yankee bonds. The global bond carried a spread of 535 over Bunds and used a step-up coupon structure that provides for increasing interest rates over the tenor of the bond. The floating-rate Yankee bond paid 425 basis points over US Treasuries. RUSSIA TAPS MARKET IN MIDST OF TURMOIL. The Russian Federation came to the market immediately after the stock market decline of late October with a $400 million, almost 10-year issue November 1996 June 1997 October 1997 priced at 334 basis points over US Treasuries (fig- Source: Eurotsoney Bondware and Word Bank FinancialcFlows and the Developing Counteies International lending and capital markets FIGU E4 Primary market spreads for zIGURE 5 Bond issues from Latin America deutsche mark-denominated and the Caribbean and other issues from Turkey, 1996-97 developing regions, 1997 Basis points US$ billions 1-,31,I-0 304 3 . 280 275 275 330.8 250 Latin America Aot8%o Feb Sept Dec Feb jun Oct 1996 1996 1996 1997 1997 1997 Source:Emony Eon BondwareianddWorldaBank 375 billion lira ($217 million), 6.5-year deal had a step-down coupon structure that provides for yeran7motst15bsipitsvrth lower costs as the bond approaches maturity. The issue benefited from Moody's upgrade of the country's foreign currency debt to Ba3. Argentina also issued a DM 1 billion ($567 million), 12-year bond priced at 257 basis points over Bunds; a $500 Lebano i th ol iss fom the million, almost 5-year floating-rate note issued in Cnian rast a Th rifa the Yankee market; and a 300 billion lira ($175 million), 3-year fixed-rate issue with a primary Lebanon raised $700 million, 17% more than in the spread of 269 basis points over the lira swap rate. third quarter. The government issued a $400 mil- lion, 1 0-year deal priced at 250 basis points over US BRAZIL'S PRIVATE SECTOR ISSUES. About 80% of Treasuries. Most investors came from the retail sec- the bonds from Brazil came from the private tor in the Middle East and Switzerland. The remain- sec-or. Banco Bozano Simonsen SA borrowed DM ing Lebanese issues came from private banks. 500 million ( $283 million) for 8 years at 273 basis Banque Audi SAL issued a hybrid fixed-rate and points over Bunds. From the public sector, Banco floating-rate note. The $75 million, 10-year deal, Nacional de Desenvolvimento Economico e priced at 250 basis points over US Treasuries, paid Social, an established name with European investors 8.5% for the first 4 years and 5% over 6- investors, issued a 20-year bond (with 10- and 15- month LIBOR for the next 6 years. Strong investor year call options) at 303 basis points over Bunds. demand enabled the issuer to lower the spread The spread was well below the 380 basis points paid range from 275-300 basis points during pricing. on last year's 5-year issue. Petroleo Brasileiro SA issued a 260 billion lira ($150 million), 10-year Spreads continue to rise fixed-rate issue with a step-down coupon structure. Secondary market spreads on East Asian sovereign MIEXICO RAISES $0.9 BILLION. The Mexican bonds more than doubled, from about 200 basis government debuted in Canadian dollars, bor- points at the end of the third quarter to over 470 rowing Can$500 million ($361 million) for 5 basis points at the end of the fourth quarter (figure Febrma,y1998 International lending and capital markets spreads on sovereign bonds from Europe and Cen- RCRE 6 Secondary market spreads on sovereign bond issues, 1997 tral Asia rose from about 90 basis points to 150 basis - ~points, while margins on private bonds tripled, clos- Latin Americo ing the year at more than 900 basis points. and the Caribbean Spreads rose less in primary markets than in 400 secondary markets, because issues were restricted largely to creditworthy borrowers. Malaysia's Al- o rated Peronas borrowed at margins comparable to those on its earlier issues. Offshore-listed issuers from Indonesia, Poland, and Russia did nor expe- rience an increase in the primary cost of borrow- ing. Private banks from Brazil also averaged the to nearlspread0asainstheipreviousuquarterseofn1997 and Central Asia (figure 8). The average maturity of new issues was and bhe Pacific about 7.5 years in the fourth quarter (figure 9) 0 ___________ ___________I e r, compared with about 10.5 years in the third, when Source. Euromoney Bondware and World Bank. several Latin American countries swapped Brady bonds for 30-year global bonds. For the year as a 6). Secondary spreads on the region's private sec- whole the average maturity of bond issues was tor bonds also shot up, from over 1,000 basis points higher than in 1996; almost 50% of the bonds to nearly 1,500 basis points (figure 7). Secondary issued had maturities of 6- years, comparedwith spreads on sovereign Latin American issues also 40% in 1996, and 20% had maturities of more than rose steeply, from about 190 basis points at the 15 years, compared with 8% in 1996 (figure 10). beginning of the quarter to about 450 basis points after the stock market declines at the end of Octo Fixed-rate issues continue to dominate ber, but dropped to about 335 basis points toward the end of the year. Private sector spreads in Latin just over 85% of bond issues carried fixed-rate America also climbed, from about 300 basis points coupons in the fourth quarter, down slightly from to about 400 basis points. Secondary market over 90% in the third quarter (figure 11). An offshore-listed Indonesian company, an Estonian Secondary market spreads on private bond issues, 1997 public finance company, and the government of Argentina issued the only floating-rate notes in the to an offshore-listed company in Indonesia and a blue-chip oil and gas company in Russia. About 90% of the bonds issued in the fourth quarter were denominated in dollars, deutsche marks, or 900 -------------------------------~~~y e -- - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - -- - - - - - --- - - - y n (fig u re 1 2 ). East Asia and te PaificCommercial bank loans Latin AmeLcca bondsefornSOyLoan volume rises in fourth quarter EuropeCommercial bank loans to developing countries hrose 30% in the fourth quarter, making it the strongest quarter ever and bringing total volume Source: Euromoney Bondware and Wa1d Bank. for 1997 to a record $156 billion (table 2). About pbFinancial Flows and the Develcping Countries International lending and capital markets =1GL RE 8 Primary market spreads on dollar- FIGURE9 Maturity profile of bond issues denominated bond issues by region, I 997Q4 from private Brazilian banks, I997 US$ billions Bosis points Over 15 years 3.8 254 256 25 236 1 I-IS years 6-10 years 1 1-5 years Commercial bank oans to .4 developing countries rose 0.8 30% in the Q2 Q3 Q4 fourth quarter, East Asic Europe and Latin Middle Sour-e: Euromoney Bondware and World Bank. ond the Centrol Asia America East and the strongest Pacific and the North Africo 70% of the increase was due to sovereign borrow- Caribbean quarter ever ing from the Middle East and North Africa and Source; Euromoney Bondware and World Bank. Latin America. Most of the rest was accounted for by the nonsovereign public sector in Europe and were short-term debt, in line with the average seen Central Asia and the private sector in the Middle in the first three quarters of the year (figure 14). East and North Africa. The syndications market was less affected than the bond market by the mar- Loans to Sub-Saharan Africa increase ket turmoil in the fourth quarter, perhaps because FIGJRE 2 of established relationships between borrowers Loans to Sub-Saharan Africa increased 18% in the Currency and lenders. Many borrowers that were unable to third quarter, to $3.8 billion-the highest composition of bond obtain funds in the bond market turned to the regional total in 1997. issues, 1997Q4 loan market for financing. About 20% of the loans East Asia and the Pacific Yen FIGURE II Type of bond issues by region, 25% 1996, 1997, and 1997Q4 FIG RE o Maturity profile of bond issues, Percent 1996 and 1997 US$ aillond Floating M1 Convertible E Fixed rate USs U5$ billions 1996 1997 !997Q4 75 Latin America and Caribbean Con$ 79 9 Over 15 years 1%1 1 l-15 years M 6-10 years 28% f-5 years ,Europe and Central Asia US$ 69% East Europe Latin Middle Asia and America East and and the Central and the North 31% 1996 1997 Pacific Asia Caribbean Africa Source: Euromoney Bondware and Sour:e: Euromoney Bondware and Word Bank. Source: Euromoney Bondware and World Bank. World Bank. Februaryl998 International lending and capital markets TABLE 2 Loan issues by type of borrower the public sector, the Industrial Development US$ millions T1997 1997 Corporation of South Africa borrowed $255 mi- 1996 1997 Q3 0 lion through a 5-year term loan, paying 42.5 basis Ai developing countnes 95,385 156,272 37.378 48,491 points over LIBOR. Prvate 61,850 94,617 23,745 28,109 Sub-Saharan Africa 3,921 5,367 1, 38 2,535 PUBLC SECTOR COMPANIES BORROW. Sonan- EastAsia and the Pacific 31,823 28,690 7.699 4,285 South Asia 2,395 3,322 721 1,626 gol UEE, Angola's state oil and gas company, bor- FIGUR i3 Europe and Central Asia 6,718 12,320 3.979 4,660 rowed $720 million for3years in two transactions. . Latin America and Caribbean 16,515 34,263 9,933 9,012 Sectoral composition Middle East and Norh Africa 477 10,654 275 5,991 Benin entered the market for the first time, with a of bond issues, public corporation syndicating a 250 million 1997Q4 sovereign 4,347 12,509 1,76 8952 Sub-Saharan Africa 47 353 20 3I9 Other East Asia and the Pacific 790 822 13 I8 it. Ghana's state-owned Cocoa Board borrowed 0, Government South Asia 701 381 257 0 Miningl 37% Europe and Central Asia 1,009 1,871 800 445 oil 8% Latin America and Caribbean 627 3,916 467 3,250 points over LIBOR to finance the purchase of Middle East and North Africa 750 5,1I66 I60 4,920 Midde Est nd ort Afica 7505,16 10 4920 cocoa beans. Export receivables were pledged as Bankng Otherpublic 29,188 49,147 11.9I8 .1,431 security. Lesotho's Highlands Development finance Sub-Saharan Africa 1,333 3,297 2,093 963 Authority borrowed $14 million for 16 years. 46% East Asia and the Pacific 8,072 13,624 3.361 3,295 South Asia 4,093 3,454 1.034 236 Note: Based on investor Europe and Central Asia 7,533 16,744 1,490 5,146 composition in the primary marker. roeadCnrlAi 7,3 [644I905I46LIBERIA AND SEYCHELLES TAP MARKET. Private ar Latin America and Carbbean 7,486 10,239 3 125 I,383 World Bank. Middle East and North Africa 671 1,789 814 408 shipping in Liberia borrowed $319 Ssurce: Euromoney Bondware and World Bank. million in 10- and 16-year transactions to finance the construction of vessels. The Central Bank of SOUTH AFRICA ACCOUNTS FOR 60% OF THE Seychelles came to the market for the first time REGION'S BORROWING. All but one of South with a $30 million, 3-year term loan at a spread of Africa's loans went to private borrowers. Billiton 200 basis points over LIBOR. Finance BV, one of the world's leading mining and natural resource extraction groups, refi- Loan volumes to East Asia fall nanced its revolving credit facility for $1 billion for 7 years, paying 25 basis points over LIBOR for the Syndicated loans to East Asia and the Pacific first 5 years and 32.5 basis points thereafter. From dropped to $7.6 billion in the fourth quarter- 32% less than in the third. The nonsovereign pub- =IGURE 1 Share of short-term borrowing lic sector accounted for 43% of loans; the private in commercial bank loans, 1997 PercenCge of Soout Aofn synbrcrtioonswed$25 23 CHINA HAS THE REGION'S LARGEST VOLUMES. China was responsible for almost 35% of the 6 region's borrowing. Five public airlines arranged Other FJ aircraft financing worth $0.8 billion, with Europe and Central Asia maturities of about 10 years. Most of the loans East Asia and the Pacific involved export credit agencies from t-7 couni Latin America and Caribbean Btries. Although many deals attracted strong syndicate participation, leading to their oversub- scription, some borrowers scaled back deals in ponse to poor market conditions. QL Q2 Q3 Q4 INDONESIAN AND MALAYSIAN PRIVATE SEC- Source: Euromoney Loanware as Wore Bank TORS BORROW. Private companies in Indonesia S eFinancial Flows and the Developing Countries International lending and capital markets bo:rowed $1.5 billion, with project financing FIGUR71[ Sources of bank financing for East ac: dunting for more than half the total. Bor- Asian borrowers, 1997 ro) ers provided securities to syndicate members Percent through various financial covenants, liens over receivables and assets, and put options. Most of the $1 billion in loans to Malaysia went to the private sector. More than a third of the region's Asia financing came from Japanese banks (figure United States 15' United Kingdam, France E PHILIPPINES TAPS MARKETS. Loans to the Germany E Philippines increased 45%, to $1.3 billion, including project financing for infrastructure activities and loans to finance and services com- China Malaysia Indonea Philippines Iholond panies. Public borrowers included the state- Source Eurnoney Loanware and World Bank owned National Power Corp., which raised $160 million through a 4-year term loan at 125 basis (India) Ltd., tapped the market twice for a total of points over 6-month LIBOR, and the Philippines $54 million. The Industrial Development Bank of Long Distance Telephone Co., which refinanced India guaranteed an 8-year term loan for Ispat existing debt for 5.5 years at 90 basis points over Industries, paying 100 basis points over LIBOR. LIBOR (figure 16). State-controlled Indian Airlines borrowed $17 million in a 5-year term loan that was the first THAI PUBLIC SECTOR BORROWS. Public com- transaction for a public corporation without a gov- panies borrowed almost all of the $1.1 billion ement guarantee. The loan will be serviced syndicated for Thailand in the fourth quarter. from the company's dollar receivables. Almost The biggest loan, for the Export-Import Bank of two-thirds of India's bank lending came from Aus- Thailand, was a 1-year, $500 million revolving tralian, Belgian, German, Japanese, and US credit facility priced at 45 basis points over banks. LIBOR. Thai Airways International tapped the market for $0.5 billion at maturities of 10 years or more, secured by mortgages on the aircraft 9GUFkE 16 Average spreads paid for loans, 1997Q1-Q3 and Q4 being delivered. Basis points 300 East Asia and the Pacific Latin America and the Caribbean VIETNAM BORROWS FOR HIGHWAYS. A public QI-Q3 commercial bank from Vietnam borrowed $30 250 million in a 5-year term loan priced at 175 basis points over SIBOR. The money will be used to 200 improve national highways. India is South Asia's sole borrower Loans to India rose from $1.5 billion in the third quarter to $1.9 billion in the fourth. Private com- panies accounted for about 85% of the new issues. India's largest private corporation, Reliance ' Industries Ltd., borrowed $0.5 billion, and the 0- country's largest private airline, jet Airways Source Euromoney Loanware and World Bankc FeAruayr998 International lending and capital markets Loans to Europe and Central Asia rise ement raised $225 million in three 3year deals, to $10.2 billion paving 170 basis points over LIBOR for each. SLOVAK PUBLIC SECTOR BORROWS. Public corn- LOANS TO RUSSIA SURGE. Russia's borrowing panics accounted for 85% of the Slovak Repub- rose from $0.9 billion in the third quarter to $4.5 lic's $0.8 billion in syndicated loans. The billion in the fourth. Public borrowers accounted government came to the euromarket for the first for 80% of the total, with strong participation by time with a 7-year (extendible to 10 years) loan at public banks. Rossijskoje A/O Gazprom, the coun- 57 basis points over LIBOR. The state-owned rail- try's flagship oil and gas corporation, arranged a $3 way company borrowed $135 million for 5 years at billion, 8-year loan at 175 basis points over LIBOR. 72 basis points over LIBOR. The terms provided The syndication cost the company about 100 basis for adjustment in the spread if the borrower's points less than it paid for other loans earlier in the credit rating changes. year. All the other Russian transactions were for one year or less (figure 17), except a 3-year, $60 mil- OTHER COUNTRIES BORROW. Poland borrowed lion term loan to the National Reserve Bank at 350 $1 billion, split almost evenly between the basis points over LIBOR. nonsovereign public and the private sectors. Pri- vate borrowers from the Czech Republic obtained TURKISH PRIVATE SECTOR BORROWS. Turkey $0.7 billion. The International Finance Corpora- borrowed $1.8 billion, about the same as in the third tion (lFC) arranged a $23 million loan to a private quarter. Private companies accounted for most of hotel corporation in Bulgaria, and $60 million for the total. More than 60% of the loans went to the Kazakhstan. A Macedonian public corporation banking sector, with most falling due in one year. raised short-term trade financingworth $11 million An exception was Demirbank TAS, which raised $60 at 400 basis points over LIBOR. Ukrainian compa- million for 3 years at 100 basis points over LIBOR. nies came to the market for short-term financing Demirbank's was the first corporate transaction to totaling $40 million, with average spreads of more be syndicated in Asia and attracted strong bank par- than 420 basis points. Uzbekistan Airways raised ticipation, leading to an oversubscription. The gov- $41 million in a 10-year term loan. Lithuania bor- rowed $100 million through a 3-year revolving F C-RE 7 Share of short-term loans in Europe and Central Asia total, credit farility at 45 basis points over LIBOR. 1997Q4 Percent Loans to Latin America and the 100 Caribbean total $13.6 billion 95 MEXICO REMAINS THE REGION'S LARGEST BOR- ROWER. Mexico borrowed $5.7 billion in syndi- 73 68 cated loans in the fourth quarter. In early November the government came to the market with a $2.5 billion revolving credit facility at an ini- tial cost of 20 basis points over LIBOR, with 0 Romania Russia Turkey Croatse Slovdk Poland Czech Hungary Republic Republic pry aycroain aet h aktt Note- Exdudes project finanangt Total for Russia excludes Gazcpro 's $3 bilion, 8-year loan. loansment toaise privat millior including a3-yeas, paying billion la fo over LIO SA ec fiane accouted cqui s of nther prva Rb- Pactania Russis Turey brllionS/incsyPdacatCzechoHnngarhe Repubuc Rpugvcepny.Manytoprin came to the er market thefis arrane funding7-yer ethenil comecia pear ro-a Note Excicas projet F nanwag.coomaanr Rossiaeedl.$135Gmilrlmon3fool oryeyear aa Souce:Eurmory Lanwre cerordian. ra. hngs nonsovereignloublicnandhheDevivateisectors.riri International lending and capital markets BRAZIL BORROWS FOR TRADE FINANCING. Brazil Amrcan o w b 997Qa se ared loans worth $2.2 billion, evenly split beween the nonsovereign public and the private Un/Led Stares sec:ors. Trade financing accounted for just over half of the total. 9% ARGENTINA'S PRIVATE SECTOR BORROWS. All of Japan The overage the $1.6 billion channeled to Argentina went to the private sector. Corporations such as Tecpetrol France margin paid oe and Gas Argentino SA came to the market to refi- 6% 6% 7% the benchmark nance eurobond obligations at spreads of about Source: Euromaney Lanware and Ward Bank. interest rate fel I basis points over LIBOR. Both companies had issued eurobonds in 1993 at spreads close to 400 quarter to $11.3 billion in the fourth, with Oman uy about 50 basis basis points. Another private company, Trans- and Saudi Arabia accounting for 90% of the points portadora de gas del Sur, raised $100 million for increase. Project financing accounted for half of 5 years at 75 basis points over LIBOR. In 1996 the the region's funding. The government of Saudi company paid 400 basis points over US Treasuries Arabia arranged $4.3 billion for 7 years at 21 for a 5-year bond issue. basis points over LIBOR. A private Egyptian company refinanced $250 million of debt for 5 COLOMBIA HAS ITS STRONGEST QUARTER IN years at 85 basis points over LIBOR. The gov- 1997. Colombia borrowed $1.5 billion in the ement of Iran raised $15 million to improve fourth quarter. The government refinanced a the country's transportation facilities. And to loan it had taken out in 1995 at 125 basis points cover capital costs associated with capacity over LIBOR. Strong bank participation enabled expansion, Tunisia's state electrical utility cor- the 5-year loan to be increased from $225 million pany borrowed $33 million for 7 years at 35 basis to S325 million at 65 basis points over LIBOR. points over LIBOR. Maturities on most of the country's syndications ranged from 5 to 7 years. Terms of borrowing improve OTHER COUNTRIES BORROW. Chilean compa- The average tenor of loans rose to 5 years in the nies raised nearly $1 hillion, down 45% from the fourth quarter from 4 years in the third (figure third quarter. In Peru the IFC arranged a $120 19). The average margin paid over the bench- million, 3-year loan that was the first international mark interest rate fell by about 50 basis points, to let-er of credit facility for a private Peruvian bor- 150 basis points. Europe and Central Asia con- rower. The government of Trinidad and Tobago tinued to pay the highest premium at about 225 borrowed $150million for 1 vear atraspread of 247 basis points, with Kazakhstan, Macedonia, Rus- basis points over LIBOR. In Venezuela the IFC sia, and Ukraine paying 400 basis points or more. arranged 10-year financing for a private cellular Margins for Latin America and the Caribbean phone provider. Much of the country's syndicated rose by 60 basis points to 166 basis points, with volume went for project finance activities. Argentina and Trinidad and Tobago paying almost 250 basis points and Chile paying about Loans to the Middle East and North 40 basis points (see figure 16). Commensurate Africa increase sharply with the longer maturities, the average spread paid by East Asian and South Asian borrowers Syndications for the Middle East and North rose about 20 basis points, reaching 128 basis Africa jumped from $1.2 billion in the third points and 100 basis points. Februa,y 1998 International lending and capital markets FIGURE 19 Average maturity on loan syndications for developing = Currency composition of loan countries, 1997 and 1997Q4 issues, 1997 Years Percent 6 00 5 1997Q4 Q997 4 Al developing liddle East South Asia East Asia Lan America Europe and Sub-Saheran Sorce uromoney Loanwar and World Bank. countries and North and the Poific and the Central Asia Afrca Africa Coribbean CHINA BORROWS FOR TWAO POWER PLANTS. China Source: Euromoney Loanware and World Bank. arranged two project financing loans totaling Project financing rises in fourth quarter almost $600 million. The first loan, for $90 million, will finance part of a $600 million power generation Project financing loans increased 60% in the fourth plant to be built in Anhu province. The limited quarter to almost $11 billion, making it the recourse facility was divided into two transactons: strongest quarter in 1997 (table 3). Loan volumes an $80 million, 10-year credit facility priced at 210 doubled to East Asia, Europe and Central Asia, and basis points over LIBOR and a $10 million, 3.5-year the Middle East and North Africa. Funds channeled revolving credit facility to cover cost overruns. The toward infrastructure remained consistent with the project's sponsors provided a quarter of its financ- third quarter at about 40% of the total, compared ing in equity. Tbe rest of the financing will come with about 25% in the first half of the year. Power from domestic development banks and the German and telecommunications projects continued to development agency (MV), with political risk cov account for most infrastructure financing. erage from Hermes. The second loan signed was for China's first TRE 3 Project financing by region and sector build-operate-transfer (BOT) project, Guagxi US$ millions 1997 1997 1997 Laibin Electric Power Co. Ltd. (Laibin B). The 1996 i 997 jGnuiry-une Q3 Q4 transaction came in three tranches. The first Region tranche, a $303 million, 15-vear term loan at 135 Al developing countries 20,484 32,500 I5, 10 I 6,736 10,663 Sub-Saharan Africa 200 363 123 240 0 East Asia and the Pacific 13,982 7, 172 4,530 713 1,929 (postcompletion) over LIBOR, was guaranteed by SouthAsia 2.173 978 263 129 586 Europe and Central Asia 1,353 5,139 3,187 727 1,224 Latin America and Caribbean 2,026 7,299 3,578 2,506 1,215 other two tranches were for 10 years apiece: a com- Middle East and North Africa 750 1 1,550 3,420 2,422 5,708 mercial loan of $159 million priced at 210 basis Sector Powe 5,74 ,68 1,54 00 2132 points over LIBOR and a $40 million standby facil- Power 5,074 4,686 1,504 1,050 2,132 Telecommunicatons 2,I50 3,457 1,080 1,186 1,192 ity priced at 235 basis points over LIBOR. Transportation 427 1,069 218 313 539 Other infrastructure 1.509 1,274 827 100 347 Noninfrastructure I I.325 22,014 11,473 4,088 6,453 INDONESIAN PROJECT FINANCE TOTALS $0.8 BIL Source. Furomoney Loanware and World Ban, LION. Two private electric utilities from Indonesia e Financial Flows and the Developing Counttries International lending and capital markets PC R 2!Secora ditribtio ofproectagreement. And apnivate telecommunications corn- FIG RE2Scoal distribution of project financing in East Asia and the Pacific, pany raised $122 million for 8 years at 200 basis 1997Q4 points over LIBOR. Telecommunications Construction THAILAND HAS ONE TRANSACTION. Thailand and engineering a ed a 5-year, $50 million loan-almost half Oth-i11 its originally planned size because ofideteriorating 411 T market conditions. The deal provided the banks 4 Power 20% with a put option after 3 years. Oil and Forest INDIA HAS TWO PROJECT FINANCE DEALS. petroieum production Reliance Petroleum Ltd. raised $300 million for li% 8% _______________________________ 10 years, paying 200 basis points precompletion Sour:: Euromoney Loanware and World Bank. and 250 basis points postcompletion, for partial arranged project financing loans. One was a $250 financing of construction of a oil refinery. In milion, 12-year credit facility; the other was a $400 addition, a joint venture between Birla Group million revolving credit facility to finance geother- (India) and AT&T (United States), Birla AT&T mal power units. PT Dayamitra Telekomunikasi Communications Ltd., came to the market with C&W Mitratel arranged $130 million in limited the first international financing for India's recourse project financing to construct and install telecommunications sector. About $290 million telecommunications lines. The financing was split was raised to construct and operate cellular net- into a $25 million, 3-year working capital facility works. with annual put options and a $105 million, 7.5- year senior debt facility. The project's sponsors CROATIAN COMPANY FINANCES HIGHWAY CON- provided 25% of its financing in equity. STRUCTION. A private Croation transport com- pany raised DM 235 million ($133 million) in LOAN ARRANGED FOR MALAYSIAN TRAIN STA- two 10-year loans to finance highway construc- TION. Ajoint venture between a Malaysian and a tion. The transactions were arranged by a Swiss French construction and heavy engineering com- bank. pany, Ekovest-KMZ Dragages Sdn Bhd, borrowed $147 million for 3 years to construct a central train station in Kuala Lumpur. FIGRE 22 Sources of project financing for developing countries, 1997 Percent PHILIPPINE POWER COMPANIES BORROW. Luzon O Hydro Power Corp. of the Philippines raised $105 Canadt million in a 10-year term loan thatwill pay 300 basis Fac points over 6-month LIBOR during construction of Unted States the project and 250 basis points thereafter. Min- Germany danao II, a BOT geothermal power plant, borrowed U aan $40 million for 10 years, initially paving 250 basis points over LIBOR. The spread will fall to 225 basis points during the final stages of the project, reflect- ing reduced risk as the plant becomes operational. N J A public company, Metro Rail Transit Corporation, raised $87 million for 10.5 years at 187 basis points Sub-Sohoron Et Asi South Asia Estern Lon Amence Middle East Afrire ond the Europe end end the ond North over LIBOR to finance construction of a light rail Pacific CentralAo Coribbean Africa transit system under a build-lease-transfer (BLT) Source: Euromoney Loaeware and World Bank. Fep oan1998 International lending and capital markets TAB_E 4 ROMANIAN TELEPHONE COMPANY BORROWS. Venezuela, with syndicated funds totaling $450 mil- Sovereign foreign Romania's MobiFon SA raised about $190 million lion in three tranches of$150 million. The proceeds currency debt Long-term ratings, as of December31, 1997 to operate and expand wireless telephone facili- iron ore production plant. One of the deals was Moody's S&P ties. The loan, arranged by a consortium of Euro- guaranteed by the US Overseas Private Investment Investment grade ChlIe BaaI A-/AA*' pean banks, has a maturity of 9 years at 320 basis Corporation. Funds were provided by the banks at China A3 BBB+' points over LIBOR. an average cost of 225 basis points over LIBOR, for Colombia Baa3 BBB-/ A+a tenor of around 10 years. Croatia Baa3 BBB-/ Croata ABB-I RUSSIAN ENGINEERING COMPANY BORROWS. A A-* Cyprus A2 A- public construction and heavy engineering com- BARAIN BORROWS $500 MILLION. Barain AA+* Czech Republic Baal A' panyfromRussiaarrangeda $200 million, 14-year raised funds to develop power plants and water Bstonia Baai n.a. loan from a syndicate of French and Swiss banks. desalination plants. The first tranche, for $200 Hungary Baa3 BBB-/ A-*I The deal was backed by the UK's Export Credits million, paid 60 basis points over LIBOR at a India Baa3 BB / BBB+* Guarantee years. The second, $300 million Indonesia B2 BBB-/ tranche had a maturity of 10 years. Korea, Rep. of Bal A-/ SLOVAK REPUBLIC AND POLAND BORROW FOR A+ TELECOMMUNICATIONS. A private Slovakian com- MOROCCAN COMPANY BORROWS FOR THERMAL Malaysia A2 A+/ AA+*3 pany, GlobTel, borrowed DM 215 million ($124 POWER. Morocco's Jorf Lasfar Energy Company Malta A2 A+/ A+ million) for 9.5 years at 90 basis points over borrowed almost $0.9 billion in limited recourse Panama Baal BB+/ LIBOR from a consortium of French, German, financinginfivetranchesof12yearseach.Oneofthe BB+*1 Poland Baa3 BBB- Japanese, and UKbanks. The funds will be used threedeutschemarkloans (totangDM467million) A-"2 Slovk Rpuoic aaB BS to construct a mobile phone network. A private was guaranteed by the IFC; the other two were guar- Slovak Republic Baa3 BBB-/ A"' Polish electricity company borrowed $195 million anteed by export credit agencies from Italy (SACE) Slovenia A3 A/AA* Soutenfra Baa BBPA" in three US dollar transactions with 20, 12, and 7 and Switzerland (ERG). The two loans denominated South Africa Baa3 B+/ BBB+*2 year maturities and $27 million (Sfr 39 million) in in US dollars carried a US EXIM Bank guarantee. Thailand Ba I BBB/ A-"3 a Swiss franc transaction. The margin over LIBOR varied over the life of the Tunisia Saa3 BBS-I Tuii a"'BB loans, with the deutsche mark-denominated deals A* 1 Uruguay Baa3 BBB-/ ISTANBUL METRO PROJECT BORROWS. A $319 averaging 167 basis points and the dollar- BBB+* Speulaiv grdemillion, 2-year loan to Turkey's Istanbul Metro denominated deals averaging 125 basis points. Speculative grade Argentina Ba3BBI was arranged through a syndicate of French and BB-* Dutch banks. Also from Turkey, a private electric- JOINT VENTURES FROM THlE MIDDLE EAST E-;TER Barbados Bal n.a. Brazil BI BB-/ ity provider raised $66 million for 12 years to THE MARKET. An oil and gas joint venture between BB+*1 Bulgaria B2 n.a. develop a power plant on a BOT basis. The plant the government and the private company Oman Costa Rica Bal BB/ will sell electricity to the Turkish Electricity Gen- LNG LLC borrowed $2 bilhon for 12.5 years at 90 BB+*! Dominican Rep. BI B+/BB erating Authority, basis points over LIBOR. Saudi Yanbu Petrochemi- Equador BI n.a. cal Company, a joint venture between a Saudi Ara- Egypt, Arab Rep. Ba I BBB-/ A-" VOLUME FOR LATIN AMERICA FALLS TO HALF THE bian company and Mobil Corporation of the US El Salvador Baa3 BB/ BBB+2 THIRD-QUARTER LEVEL. A private Mexican company raised $2.3 billion for 10.5 years, paving close to 50 Guatemala Ba2 n.a. will finance the construction of a fiber-optic net- basis points over LIBOR, to expand a chemical plant. Jordan Ba3 BB-/ BBB-*' work using $350 million in 8-year loans divided in Kazakhstan Ba3 SB-I Kazkhsan a3 B_/ two tranches. One tranche, guaranteed by the US Market creditworthiness BB+1 Latvia Baa2 BBB/ Export-Import Bank (EXIM), was for $240 million A-*I Lebanon BI BB-/ at 19 basis points over LIBOR. The second, an unse- Moody's rates Latvia, Bulgaria, and Lithuania Sal 1 cured $110 million loan, paid 300 basis points over Lfili BB*-I Lithuania BalI BBB-/Lihaa BBB+* LIBOR. From Peru, a mining company secured Mauritus Baa2 n.a. Meuicou Baa2 BBa $415 million from a svndicate ofSvviss and US banks MOODY'S AWARDS AN INVESTMENT GRADE RAT- Mexico Ba2 BB/ BBB+*2 to construct a lead mine. There was one deal from ING To LATVal. Following Standard & Poor's (ties continues next pTge ) Financial Flows and the Developing Countries International lending and capital markets (S&P), which awarded a BBB rating to Latvia in Moody's downgraded Malaysia's long-term TABLE 4 (cnried) January 1997, Moody's assigned a Baa2 rating to credit rating from Al toA2. S&P revised Malaysia's Sovereign foreign currenc y debt Larvia's long-term debt denominated in foreign outlook from stable to negative, citing the Lang-term ratings, as of currencies (table 4). The agency cited the coun- authorities' reluctance to curb rapid credit December31, 1997 tri's ongoing macroeconomic and structural growth, the likelihood that bank asset quality will Moodys S&P reforms, accelerating privatization, and a deteriorate, and concerns over government policy Sela ga ( . stsengthening of the banking and financial system in the wake of volatility in foreign exchange and Pakistan 32 3+ indpedene 99. sar makes.Paraguay n,a. BB-/ since independence in 1991.B* Moody's downgraded its rating for the Republic Peru 32 na Philippines Sal BB--/ MOODY'S UPGRADES BULGARIA. Moody's of Korea from Al to Bal, and S&P downgraded the upgraded Bulgaria's rating on long-term, foreign- country's long-term debt rating from AA- to A- Ramania Ba3 BI denominated debt from B3 to B2. Analysts attribute Russia Ba2 313-1 the upgrade to the reform program of the center- S v i t f ead a BB+/ right Union of Democratic Forces government, c rie Turkey S 1 Turkmenistan B2 n.a. which has introduced a currency board system, cut Venezuela Sa2 1 in flation, and launched a privatization program. FOUR COUNTRIES MOVE FROM POSITIVE TO STA- Vietnam Ba3 na. BLE. S&Pdonrddisotokfrfuohe * The first rating applies to fareign dowgraed ts utookforfou oter currency dbt and the second to LITHUANIA RECEIVES AN UPGRADE. Lithuania's countries as well. In the Philippines analysts cited cames crrency debs. n.a. Nat applicable. long-term, foreign-denominated debt also received concerns about the economic effects of the depre- 1. Stable outlook. 2. Positive outlook. an upgrade from Moody's, to Bal from Ba2, ciation of the peso and the rise in interest rates 3. Negative outlook, because of accelerated privatization and other struc- and about the political commitment to a rapid tural reforms. These reforms are expected to improvement in fiscal balances (particularly given remove market inefficiencies, promote foreign upcoming elections). S&P analysts expressed con- direct investment, cut interenterprise arrears, and cern over India's high levels of public borrowing, improve the health of the country's banking system. which limit fiscal flexibility, place pressure on domestic interest rates, and hamper further liber- East Asian countries downgraded alization of the financial sector. Moody's also has put India's rating under review for possible down- THAILAND'S RATINGS SLIP. Thailand's rating grading. In Colombia S&P analysts expressed con- for long-term, foreign-denominated debt was cerns that the escalating conflict with guerrillas downgraded from A- to BBB by S&P and from AS will delay important public sector reforms. The to Bal by Moody's in the aftermath of the East revision made Colombia the only Latin Amencan Asian financial crisis. Both agencies cited uncer- country to see its credit standing deteriorate in tainty about Thailand's ability to implement 1997. Finally, a change in S&P's outlook for the reforms and stabilization measures, concerns over Dominican Republic reflects public disenchant- political leadership, continued pressure on the ment with the current political stalemate, which balance of payments, and slow progress on finan- has led to strikes and related violence and a weak- cial sector restructuring. ening external position, with net external reserves equal to less than two weeks of imports. INDONESIA, MALAYSIA, AND THE REPUBLIC OF KOREA ALSO DOWNGRADED. Indonesia's rating was MEXICO REVISED FROM STABLE TO POSITIVE. downgraded from BBB to BBB- by S&P, and from Analysts expect Mexico's recent efforts to open Baa3 to B2 by Moody's. Both agencies cited the the political process to improve governance in the steep rise in corporate debt, deteriorating asset long run. The pace of improvement in the coun- quality, and the prospect of slower economic try's credit standing will hinge on the govern- growth delaying needed economic reforms as the ment's commitment to forging consensus about main reasons for the lower ratings. market-oriented economic policies. Fesa aa'1998 Mood's dwngadeditsratig fo th Repbli Equity portfolio and foreign direct investment Emerging stock markets ber. Still, by the end of December it had dropped 66% in dollar terms. Thailand's market fell 54% IFC's investable composite index (IFCI) in the fourth quarter, and was down 79% for the drops 20% in fourth quarter year as a whole. The market recovered briefly in November, rising 7% following the resignation of The spillover effects of the East Asian financial cri- the prime minister. The market plummeted again sis led to worldwide declines in stock markets dur- in December, however. Indonesia's market fell ing the fourth quarter. The IFCI composite index 58%, and continued to fall despite a preliminarv dropped 16% in October (figure 23). Although agreement with the International Monetary Fund some markets bounced back in November and (JMF). The market stabilized at low levels only in December, only a few markets (in Europe and January 1998. Malaysia's market dropped 46% in North Africa) recovered to their September level. the fourth quarter despite a rally in early Decem- Overall, the IFCI index fell 20% in the fourth her after the announcement of the government's quarter. The IFCI index is calculated in US dol- economic program. lars, so the fall reflects both the drop in stock mar- ket prices and currency depreciation. Five new CHINA'S MARKET DRops 36%. After increasing markets-Egypt, Israel, Morocco, Russia, and the 6% in the third quarter, the IFCI index for China Slovak Republic-were added to the IFCI index in fell 36% in the fourth. In an effort to increase November. transparency in the market, the China Securities Regulatory Commission issued new rules requir- Asian markets down 37% in fourth ing more information in listed companies' annual quarter reports. The rules will take effect with the publi- cation of 1997's full-year results, due by the end of EAST ASIAN MARKETS SUFFER SHARP DECLINES. April 1998. The deterioration in market confidence that started in the summer intensified in the fourth INDIA'S MARKET FALLS. A 13% decline in quarter. The Korean market fell steadily in Octo- India's stock market appears to have been due ber and November before stabilizing in Decem- largely to political developments rather than to _________________________________________________________ spillover effects from the Fast Asian crisis. FIGUR7 23i IFC's Investable Composite Index, by region Although the marketfell 8% when US markets fal- July 1994-December I1997 tered in October, it immediately rebounded 7%, inly hneDceth I997 150 July /994-/ 00 Europe, the Middle Estra%J./ N./ a nd North Africa 4*1 r s Latin American markets down 12% 50I 125 ----------------- - Latin American markets dropped 12% in the %fourth quarter. Brazil's market fell 14% in one day Sfollowed by a 10% plunge, as investors were nervous about the health of country's banking sys- eltem, the government's ability to maintain the N bexchange raie, and the implications for com a- nies' earnings of interest rate hikes and planned improvements in the fiscal balance. Mexico's 2(IM . stock market performed strongly in 1997 and Janar 198 Maasa' akt rped4%i proved resilient during the fourth quarter, with Sourre: Intratioal, Fice Corparation. only a 4% fall. Tumbling stock prices, however, t aFinancial Flows and the Developing Countries Equity portfolio and foreign direct investment forced more than a dozen equity issues to be post- through an American depository receipt (ADR) pc ned. Chile's stock market fell 17% in the fourth placement. Adverse market conditions forced the quarter following a 3% drop in the third quarter. company to reduce the size and price of the offer- ing, however. The 18 million ADRs, instead of 30 Market performance mixed in Eastern million as originally planned, were priced at Europe, the Middle East, and Africa $11.50, a 24% discount to the preannouncement price. Aneka Tambang (AnTam), a nickel and The IFCI index for Europe, the Middle East, and gold producer, raised $168 million through its ii- The volume of Africa declined 11% in the fourth quarter. With its tial puhlic offering (PO). AnTam shares were negligible current account deficit and sound gov- priced at 1,400 rupiah, the bottom of the revised ernment finances, Hungary was least exposed to indicative range. Bhakti Investama raised $24 mu- from developing Asian contagion, and its market rose 6% in the lion through an IPO of 123 million shares, priced countries fell fourth quarter. Turkey's stock exchange surged in at the bottom of its 700-900 rupiah range. Most of October, with the IMKB index moving above 3,000 the demand for the shares came from domestic 42% in the on expectations of major economic reforms. After institutions. frt strong growth in previous quarters, the Russian stock market plunged 21% in the fourth quarter. CHINA ISSUES $244 MILLION IN NEW EQUITY. Foreign investors pulled more than $5 billion in Cement, iron and steel, and pharmaceuticals securities from Russia in November alone. The companies from China issued new equity. Mean- Czech market continued to decline in the fourth while, China National Aviation Corporation, quarter and was down 22% for the year. Yanzhou Coal Mining, and several other main- Zimbabwe's stock exchange fell 52% in the laud companies postponed share listings in fourth quarter because of concerns over govern- Hong Kong in the face of its deteriorating stock ment management of a compensation package market. for war veterans, fears over the implications of El Niio for agriculture, and general profit-taking INDIA RAISES $419 MILLION. India's tele- after the market's extended bull run. The Egyp- communications group, Mahanagar Telephone tian stock market proved resilient after the Nigam Ltd, raised $419 million through a 40 November killing of 58 tourists in Luxor, falling just 12% for the quarter. F International equity issues, by region New equities U T$ b/slions 18.6 New equity issues decline in fourth pr quarter0o' 14.5 The volume of new equity issues from developing countries fell 42% in the fourth quarter, to $3.7 Lanrn America billion (figure 24). The East Asian financial crisis led many companies to postpone or cancel equityp pss Anes. 6.3 Issues from Asia drop 48% from third quarter 1996 !997 1997 Q3 1997 Q4 INDONESIAN COMPANIES RAISE $453 MILLION. Note: Equity figures inc ude domestic trancTaes. Indonesia's Asia Pulp & Paper raised $207 million Source: Euromoney Bondware and World Bani. Februay 1i998 Equity portfolio and foreign direct investment TABLES5 Developing countries' best- lion ADRs, priced at $14, were sold outside Chile, performing closed-end equity funds and 12.5 million common shares were offered to Percent f Number Average return local investors. The $480 million global equity Mrket offunds December 1997 Mexico 3 7.72 offering by Banco Santiago was suspended indefi- Argentina 4 1.79 nitely in the face of lower earnings and the fall in LatnAmeca a6 1.49 Mide East 4 -1.6 the equity market. Brazil 3 -2.13 Vietnam I 5 -3.07 India's tele- Emergng markets 20 -3.46 Europe, the Middle East, and Africa Arc10 -4.09 communications prChile 5 4.42 issue new equities worth $1.4 billion arkippines 2 -4.47 Czech Republic 3 -5.20 group, Turkey j 1 -5.48 Despite turbulent markets, the Hungarian tele- China/rng Kang tn -6.05 Mahang r Asia 27 -6.06 Emerging Europe 20 -9.82 largest offer out of Eastern Europe. The com- Telephone Nigam Thailand 28 -.4pany's ADRs were priced at $18.65. Matav became Afc Id 10 -41.95 Ltd, raised $419 Malaysia/Singapre 5 -2.14 the first Eastern European company to be listed Ilndnesa B 4.14 million Russia/C .. 10 -[8.55 on the New York Stock Exchange. Also from Hun- Seurre: Lipper International Closed-End Fu.nds Serice. gary, Graboplast raised $47 million in a global depository receipt (GDR) offering, and OTP million share divestment by the government and Bank raised $213 million in a secondary offering. 20 million new shares issued by the company. The Slovak Republic's Slovakofarma raised $47.5 Meanwhile, the $590 million privatization of the million through a GDR offering. The GDRs, 15 of Gas Authority of India Ltd was postponed which equal 1 company share, were priced at indefinitely. $9.60. Issues from Latin America drop New funds target the Middle East, to $1.1 billion Africa, South Asia, and Russia ARGENTINA RAISES $831 MnLLON. Argentina Soci&t4 Generale launched the first closed-end accounted for 25% of equity issues from develop- fund dedicated to Arab countries. The fund i- ing countries in the fourth quarter. Banco Rio de tially will invest in Bahsrain, Egypt, Jordan, la Plata attracted strong investor interest, raising Lebanon, and Oman. Shares will also be put- $635 million in Latin America's biggest IPO in chased in Kuwait, Qatar, Saudi Arabia, and the 1997. Demand originated predominately from UnitedArab Emirates when these markets open to Latin American investors. About 75% of the issue foreign investment. Fleming Investment Manage- was absorbed by institutional investors, with pri- ment launched the African Emerging Markets vate pension funds in Argentina accounting for Debt Fund, a $30 million fixed-income fund to most of the institutional demand. buy African debt for Korean investors. The fund will invest about 60% of its $30 million in South CnuLEAN AniLNE issuEs. Although many Africa and the remainder in Cte dvoire, Kenya, potential Latin issuers decided to shelve their and Nigeria. The UK-based CDC is raising $200 year-end offerings because of volatile market con- million to invest in Bangladesh, Bhutan, India, ditions, Linea Aerea Nacional Chile (LanChile) Nepal, Pakistan, and Sri Lanka. The governments raised $135 million after significantly reducing of India and Pakistan will be the biggest donors to the size of its IPO. LanChile's desire to be the first the fund. Finally, Brunswick Capital Management Latin American airline listed in New York is said launched a new closed-end fund to invest in to be a motive for its decision to proceed with its second- and third-tier (outside the blue-chip sec- IPO in the turbulent market. A total of 9.65 mh- tor) Russian stocks. Ew Financial Flows and the Developing Countries Equity portfolio and foreign direct investment Foreign direct investment and from 40% to 60%, and the Central Bank of Thai- privatization land allowed increased foreign investment in its financial institutions. All foreign banks with Car manufacturers invest in Eastern branches in Thailand are reportedly considering Europe major investment. Honda Motor Co. opened a $320 million auto- Major privatization deals concluded mobile manufacturing plant in Istanbul. Analysts during the fourth quarter Soci6te Generale say that the move will increase pressure on other automobile producers in Turkey, including Ford Hungary sold a 50% stake in a truck manufac- and its joint venture partner. Competition in the turer, Raba, to a consortium of five strategic closed-end fund Turkish automobile market is fierce because auto- investors for an undisclosed amount (table 6). dedicated to Arab mobile manufactures see Turkey as a burgeoning Another $20 million in shares were offered market and a base from which to export cars to the through an IPO in November. The ADR issue by M'Lidle East and Central Asia. Hyundai, a Korean Matav, the telecommunications firm, raised industrial conglomerate, announced plans to $1.039 billion (see above). The government also in.est up to $124 million in Poland. Hyundai sold its remaining 25% stake in OTP for $213 mil- formed ajointventure with Sobieslaw Zasade Cen- lion. The bank was partly privatized in 1995. trum (ZSC), a listed Polish carmaker, in which A 35% share of Aneka Tambang, an Indone- ZSC will have a majority stake. The joint venture sian nickel and gold producer, raised nearly $168 plans to assemble 25,000 cars a year within 2 years million. The success of the issue-the country's at Starachowice, a ZSC-owned truck plant in cen- only privatization issue in 1997-was attributed tral Poland. largely to the fact that part of the company's rev- enues are denominated in dollars. Czech government tries to lure A GDR issue by the Arab Insurance Group, General Motors which is jointly owned by the governments of Kuwait, Libya, and the United Arab Emirates, Boeing and CSA Czech Airlines have formed a raised $53.6 million from international investors joint venture company in Prague. The limited lia- and $233.3 million from domestic investors. Each bilty company, 90% of which is owned by Boeing government's share was reduced to 16.5%. The and 10% by CSA, plans to invest about $30 million deal marks the first GDR issue from the Gulf for up to 40% of Aero Vodochody, which makes region. Also in the Middle East, Jordan offered its airplanes. In addition, the Czech government is first GDR issue, raising nearly $33 million for the reportedly preparing an incentive package fertilizer company Arab Potash. designed to persuade General Motors to choose Investors gained access to Cbina's telecommu- the country as a site for an assembly plant. That nications system through an ADR that raised $4.96 investment is estimated to bring in $425 million. billion for China Telecom. It was Asia's largest equity offering ever and China's biggest red-chip East Asian governments change rules to listing (red chips are mainland-controlled com- attract foreign investment panies listed on the Hong Kong stock market). China Telecom, which is part of China's Ministry China's government announced tax breaks on of Post and Telecommunications, has its main imports of certain capital goods in a move assets in the cellular services of Guangdong and designed to lure foreign investment. Foreign Zheijang provinces. invrestment in China fell 33% in the first 11 Pliva, a Croatian pharmaceuticals company months of 1996. The Philippines raised the for- that was partly privatized in 1996, bought a 60% eign ownership limit in local investment houses stake in the Polish pharmaceuticals firm Polfa Febriaoy 1998 Equity portfolio and foreign direct investment Krakow for $85.7 million. Another Polish phar- fourth quarter. All the sales were concluded at a maceuticals firm, Polfa Rzeszow, was purchasedby premium to the base price, 70%-96%, with the a US company, ICN Pharmaceuticals, which paid highest premium (96%) paid for a 86.4% stake in $33.7 million for an 80% stake. A second attempt Empresa Energetica de Sergipe, which raised over to sell Powszechny Bank Kredytowy succeeded $520 million. Among other noteworthy sales, two when a 70% share was sold to domestic and for- electricity distributors, part of the six units of eign investors for $295 million. A 65% stake in Companhia Estadual de Energia Eletrica in the Investors gained Poland's largest paper and pulp manufacturer was state of Rio Grande do Sul, were sold for $2.89 also sold to a consortium of foreign and local billion. investors, for $157.6 million. After numerous delays the Venezuelan steel telecommunica- The privatization of power companies by state company CVG Siderurgica del Orinoco was sold tfons system in governments proceeded at a steady clip in Brazil, to a consortium of Latin American and d corn- which raised an estimated $8.6 billion in the panies for $1.2 billion. equity off"ering ever TABLE 6 Selected privatization deals, July-September 1997 Equity Amount Country Cornipn Sector shore (US$ ml.) Method of solo P..ccosec Bahrain Arab Insurance Group Financia - 290.9 Pubiic offer Variou.s investors Brazil CompanEia Norde-Nordesse d Distriucaooe Energia Eletrica Power - 1499.7 d6 Loca/foreig consortum Brazil Compannia Centro-Oeste oe Distribuicso de Energia Eletnca Power - 1,385.4 Bd Foregn investor Braz l Compania Pa oaists de Forca e Luz (CPeL) Power 57.6 2750.0 Bid Domesti consortium Brazii Empresa Energetica le Mato Grosso do Sul (Enersu.l) Power 55.4 568.7 Bid Domestic consortium Brazi Empress Energetica de Sergipe (Energipe) Power 86.4 520.3 Bid Domestic consortium Brazil Centras Eletricas Matogrossenses (CEMAT) Power 86.9 352.7 Bid Domestic consortium Brazil Companbia Eletic do Rio Grande do Norms (Cosern) Power 65.6 I1.553.5 Bid Local/foreign consortium CTL na China Telecom Hong Kong Telecom 25 4,560.0 ADRs Varous investo Cnra Tianyin Development Holdings Ltd. Retail 31.3 173.6 Pubi offer Various investors Bungary Raba Mnufacturng - 20.0 Public offer Various investors Hungary OTP Bank Banking 25 213.0 Hungary Matav Telecom 27 1,200.0 ADRs India Mananagar Telephone Nigar Let . Telecom 8.5 418.5 DRs Various investors Inia Cujarat Minersa Development Corp. Mining 26 30.0 Domestic offer Foreign/nonresidet nationals Indonesma Areka Tambang Mining 35 167.3 Public offer Varous nvestors Jordan Arab Posash Co. Ltd Chemicals 3 32.7 BDRs Various investors Lai Latvia Unibanka Financal 25 25.6 GDRs Various nvestors Po(and Powszecnny Bank KredytovPy Banking 70 296.0 Public offer Dcstl/foreign investors Poland Ceuoza Swiecie Paper 65 157.6 Drest sale Foreigngocal investors Poland Poa Krow Parmaceutcals 60 85.7 D4re5t sale Foreign investor Poand Polfa Rzeszow Pharmaceuticals 80 33.7 Direst sale Foreign investor Uganda Uganda Commercial Ban Baning 49 5.0 Drec se Foregn investor Venezuela CVG Siderurgca de Orinoco Steel 70 1,200.0 Auston ZIniam Maamba Colrepes Mining 80 I.5 Tender Foreign investor - Not available. Sonrce: Publsned sources, ncuding Euromoney Bosdware. FinancialaFlows and the Developing Countries Official flows Multilateral flows projects, including large mining and multisector projects. The World Bank also approved a $365 Rescue packages boost multilateral million loan to strengthen Thailand's financial lending sector, following approval of $15 million for the country's banking sector in the third quarter. New lending commitments from multilateral agenciesjumped to $54 billion in the fourth quar- Connitments by other multilaterals rise ter, from $11 billion in the third (table 6). The World Bank large increase reflects the commitments made to ADB commitments rose to $6.8 billion in the rescue packages for East Asian countries. The IMF fourth quarter. Of the $2.8 billion for countries alone approved a $21 billion standby credit to the other than Korea, concessional loans accounted increased to Republic of Korea, of which more than $11 billion for 27%, with about 30% going to Bangladesh and $8 billion in the was disbursed in less than a month. The Asian 30% going to Vietnam. Indonesia received $707 Development Bank (ADB) committed $4 billion million tofinance seven projects, includinga$175 fourth quarter and the World Bank $3 billion to Korea. The IMF million education project and a $150 million liq- from $3 billion also committed $10 billion to Indonesia during uefied petroleum gas pipeline project. Commit- the fourth quarter. The World Bank and the ADB ments from the Inter-American Development are scheduled to provide Indonesia with loans for Bank (IDB) totaled $3.7 billion, with 35% going $4.5 billion and $3.5 billion over the next three to Brazil. About 5% of IDB commitment were on years. concessional terms. The African Development Bank (AfD~B) committed $1.3 billion. Conces- IMF approves Supplemental Reserve sional loans accounted for 46% of AfDB lending, Facility with $144 million going to Tanzania. IMF com- mitments totaled $34 billion, with all but $2.4 bib- The IMF approved the Supplemental Reserve lion going to Korea and Indonesia. Facility (SRF) during the fourth quarter to pro- vide financial assistance to member countries. Bilateral ODA and export Relief is provided to countries experiencing credits exceptional balance of payments difficulties due to a large short-term financing need resulting Donors pledge contributions to East from a sudden and disruptive loss of market con- Asia rescue packages fidence-as reflected in pressure on the capital account and the member's reserves. Australia, Canada, France, Germany, Italy, Japan, the UK, and the US pledged contributions to res- World Bank commitments increase cue packages for Indonesia, Korea, and Thailand. Donor nations are also expected to commit $2.5 World Bank commitments increased to $8 billion billion in investment to the Philippines. in the fourth quarter from $3 billion in the third. Concessional lending through the International US Export-Import Bank approves Development Association (IDA) accounted for working capital guarantee financing 15% of the total. With a large agriculture project in Pakistan and a power project in Bangladesh, The US Export-Import Bank approved a record South Asia received 56% of concessional lending. $443.4 million in working capital guarantee Aftica accounted for 26%. East Asia and the financing in fiscal 1997. The working capital guar- Pacific received almost 50% of nonconcessional antee finance, which helps companies cover lending, followed by Europe and Central Asia's export-related costs such as receivables and inven- 36%. Russia received nearly $2 billion for seven tory, was 17% higher than in fiscal 1996. Februa?y] 998 Official flows TABLE 7 Multilateral commitments business outreach program in 1993 that has trans- to developing countries formed it into a small business export assistance US$ mdions, rn calendar year 1997 1997 agency. In fiscal 1996 and 1997 more than 80% of 1 997 Q3 Q4 Totel 1997 B Q4 the bank's transactions financed small and Total 75,554 11,291 53,590 African Development Bank 1,753 191 1,320 Asian Development Bank 9,418 2,038 6,833 International Bank for Reconstruction and Development 18641 2,7 l 5 8,185 Export-Import Bank of Japan lends to US approves European Bank for Reconstruction China and Chile and Development - - - reauthorization Inter-American Development Bank 6,596 1,640 3,675 International Monetary Fund 39,146 4,706 33,577 The Export-Import Bank ofJapan lent tree untied of Export-Import - Not available. loans totaling $225 billion to the Bank of China, Bank Source: Multilateral lending institutions. China's largest commercial bank. The three loans US approves reauthorization of Export- will finance, on a semicommercial basis, projects in Import Bank bridge and road construction and airport expan- sion. The Export-Import Bank of Japan also lent US President Bill Clinton signed the 4-year $450 million to the Los Pelambres Copper Mine Export-Import Bank Reauthorization in Novem- Project in Chile, cofinanced by commercial banks ber, extending the bank's charter through in France, Germany, Japan, and Switzerland. Mi- September 30, 2001. The bank's president and era Los Pelambres, alocaljointventure developing chairman emphasized its role in supporting US this copper mine, will use the loan to buy mining exports and jobs. The bank introduced a small and ore dressing equipment. Debt 'relief update: Official creditors ate eTitcoff on Lyon terms of 80 % (in net present value terms) of Mozambique's debt service, to be followed by a stock reduction of 80% a year later. Paris~eiu-sz businesses.sgntwodet restructuring agreements Commercial bank creditors Cameroon obtained a 3-year rescheduling with a 50% reduction of debt service in net present value Vietnam restructures debt terms (table 8). While previously rescheduled debt was included in the agreementC late interest In December 1997 Vietnam agreed on a restruc- charges were not. Creditors also agreed to resched- turing of its commercial debt with creditor banks. ule Yemen's eligible debt (including late interest) Of the eligible $797.1 million, $486.2 million over a 3-year consolidation period. The reschedul- involved past-due interest that was paid at closing ing is equivalent toa67% reduction ofdebt service ($15 million), bought back ($21.8 million), for- in net present value terms. In January 1998 Paris given ($154.6 million), or exchanged for past-due Club creditors agreed in principle to an immedi- interest bonds ($294.8 million). The remaining TABLE 8 Paris Club rescheduling agreements, October-December 1997 D5$ milions Dote Consaitted Cutoff Cnsolidatin Cuctry ofagreement amount dat penad through Terms Cameroon 24 Oct 1997 1,270 31 Dec 1988 31 Ag 2000 Naples Yemen, Rep. of 20 Nov 1997 1,444 1 Jan 1993 31I Oct 2000 Naples a. A50% reduction as netusrtes. Source: Wanld Bask. Financial Flows and the Developing Countries Debt Relief Update $f 10.9 of principal was rescheduled according to lion of past-due interestwas written off and $46.1 a menu of options that included $51.6 million of million was bought back at 12.5 cents to the dol- discount bonds (at a 50% discount) and $238.9 lar. Bosnia and Herzegovina restructured $1.3 million of par bonds. The principal on the par and billion, including $0.7 billion of past-due inter- discount bonds was collateralized by 30-year zero- est. Principal totaling $600 million will be coupon US Treasuries, of which 100% of the dis- exchanged for uncollaterized discount bonds count bonds and 50% of the par bonds were worth $400 million, while past-due interest will guaranteed. A further $20.4 million was bought be forgiven. Interest payments starting in mid- back at a discount of 44 cents to the dollar. 1998 will be applied only to $150 million of the new bonds, with principal to be paid on a Togo and Bosnia and Herzegovina reach stepped-up amortization schedule. Debt service agreement on commercial bank debt on the remaining principal of $250 million will not be payable for at least 10 years, and then only Of the $75 million covered in an agreement if per capita income exceeds $2,800 for two con- between Togo and commercial banks, $28.9 mPr- secutive years. Fe9rua9il998 Statistical appendix World Bank commitments for 1997Q4 USS millions Region Sector IDA 18RD Africa Burkina Faso Agriculture 41I Comoros Education 7 C6te dIvoire Public Sector Management 37 C6te dIvoire Urban Development 10 Entrea Transportation 30 Ghana Agriculture 30 Guinea Multisector 70 Tanzania Education 2 I Togo Agriculture 26 Togo Transportation 50 East Asia and Pacific Indonesia Finance 20 Indonesia Telecommunications 35 Korea, Rep. of Finance 3.000 Thailand Finance 365 Vietnam Environment 22 Vietnam Transportation 73 Europe and Central Asia Bulgaria Public Sector Management 100 Croatia Finance 3 Croatia Finance 9 Croatia Finance 10 Croatia Finance 8 Hungary Education 36 Macedonia. FYR Agnculture 5 Macedonia. FYR Agriculture 8 Macedonia. FYR Education 5 Moldova Education 5 Moldova Multisector 45 Moldova Multisector 55 Poland Transportation 300 Romania Education 70 Russian Federation Education 7 I Russian Federation Industry 85 Russian Federation Mining 800 Russian Federation Multisector 800 Russian Federation Population. Health, and Nutntion 66 Russian Federation Social Sector 29 Russian Federation Urban Development 31 Turkey Agnculture 20 Latin America and the Caribbean Argentina Transportation 200 Argentina Urban Development I 50 Brazil Agriculture 5I El Salvador Education 58 Guatemala Education 33 Guyana Finance 2 Panama Environment 23 Paraguay Water Supply and Sanitation 40 Peru Public Sector Management 150 Middle East and North Africa Morocco Public Sector Management 70 Yemen. Rep. Agriculture 25 Yemen. Rep. Finance 82 South Asia Bangladesh Agnculture II Bangladesh Electric Power 235 and Other Energy Nepal Transportation 24 Pakistan Agriculture 285 Pakistan Education 23 Pakistan Public Sector Management 250 Sri Lanka Education 70 International Finance Corp. Sector not available 8 Financial Flows and the Developing Countries Statistical appendix New bond issues for 1997Q4 Bonds greater than US$ 150 million Total nominal oniount (US$ equivalent. Industrv Issue Issue Spread Final Issuer country millions) Issuer Issuer type sector' Currency price type at launch coupon Maturity Argentina 217.75 Republic of Argentina Government SG Lira 101.2250 Fixed rate 90000 6 yrs 5m Argentina 567.38 Republic of Argentina Government SG DM 102.2500 Fixed rate 257.00 8.0000 12 years Argentina 175.15 Republic of Argentina Government SG Lira 100.7750 Fixed rate 269.00 8.0000 3 years Argentina 500.00 Republic of Argentina Government SG US$ 99.2969 Floating rate note see text. 4 yrs I Im Brazil . 228.58 Banco Nacional de Desenvolvimento Bank BF DM 103.0000 Fixed rate 303.00 9.0000 20 years Public Economico e Social-BNDES Brazil . 150.51 Petroleo Brasileiro SA. Petrobras Public OG Lira 100.5500 Fixed rate 146.00 10.0000 10 years Brazil 282.69 Banco Bozano Simonsen SA Pnvate bank BF DM 101.4750 Fixed rate 273.00 8.2500 8 years China 400.00 People's Republic of China Government SG US$ 99.4600 Fixed rate 68.00 b.6250 5 years Lebanon 400.00 Republic of Lebanon Government SG US$ 99.6100 Fixed rate 25000 8.6250 10 years Malaysia 166 51 Petroliam Nasional Bhd (Petronasl Public OG Yen 100.0000 Fixed rate 51.00 2.0000 5 years Mauritius . 1.437.50 APP Finance (VI) Mauritius Ltd Private FC US$ 20.4240 Convertible 0.0000 15 years Mexico 25000 GRUMA SA de CV Pnvate FD US$ 99.8320 Fixed rate 165.00 7.6250 10 years Mexico 360.70 United Mexican States Government SG C$ 99.4040 Fixed rate 175.00 7.0000 5 yrs 7m Russia i 400.00 Russian Federation Government SG US$ 103.5000 Fixed rate 334.00 10.0000 9 yrs Sm Turkey 851.06 Republic of Turkey Government SG DM 101.3750 Fixed rate 275.00 8.1250 10 years a. AM is automotive. BF is banking-financial services. CB is central bank. CM is chemicals. CN is construction. EC is electronics-electrical. EN is engineering. EU is energy-utility. FC is financial corporate. FD is food and drink. FP is forest products-packaging. FR is financial repackaged, HC is healthcare-phamtaceutical. IC is industnal-conglomerates. IS is iron-steels. IT is investment trust-company. LA is local authority, MA is manufacturing. MO is metals and ores, MP is media-publishing. OG is oil-coal-gas. RC is retailing-consumer goods, RE is real estate. RL is railways. RP is rubber-plastics. SG is state authority-govemment. TB is tobacco. TC is telecommunications, and TX is textiles-clothing. Source: Euromoney Bondware Februny 1998 Statistical appendix TABLE A.3 New loan issues for I 997Q4 Loan amount greater than US$ 50 milion Total amount Borrower Borrower (US$ equvalent, country Borrower name type Currency millions) Matunty Margina Angola SONANGOL UEE PubI C US$ 400.00 3 years LIBOR: 190.00 bp from I mth to 6 mths, 180.00 bp from 7 mths to I yr, 175.00 bp from I yr to 3 yrs Angola SONANGOL UEE Public US$ 320.00 3 years LIBOR:250 00 bp Argentina DISCO SA Private US$ 270.00 6 months Argentina Republic of Argentina Public US$ 2,000.00 Argentina Supercanal SA Private US$ 200.00 I year LIBOR:7.00% from I mth to 6 mths, 7.50% from 7 mths to 9 mths, 8.00% from 10 mths to I yr Argentina Supercanal SA Private US$ 300.00 5 years LIBOR:450.00 bp Brazil Banco Real SA Private US$ 225 00 I year Brazil Companhia Estadual de Energia Eletrica (CEEE) Public US$ 680.00 1 yr 6m Brazil Companhia Rio Grandense Private US$ 300 00 I yr 6m LIBOR:312 50 bp de Telecomunicacoes-CRT Brazil Petroleo Brasileiro SA (PETROBRAS) Public Yen 275.43 Brazil Santista Alimentos Private US$ I 60.00 2 years Brazil VBC Energia Private US$ 600.00 TBILLS:25C.00 bp Chile Compania de Telecomunicacioses Pubic US$ 225.00 3 yrs 6m LIBOR:30.00 bp de Chile SA (CTC) Chile Empresas CMPC 5A Private US$ 300.00 6 months China FR Investment Guangxi Laibin Electric Private US$ 159.00 10 years LIBOR:2 10 00 bp, PWR Co Ltd, Laibin B Power Project LIBOR: I85 00 bp China FR Investment Guangxi Laibin Electric Private Us$ 303.00 15 years LIBOR: 135 00 bp, PWR Co Ltd, Laibn B Power Project LIBOR:75.00 bp China Shanghai General Motors Corp Ltd Private US$ 555.00 8 yrs 4m LIBOR:85.00 bp, LIBOR: 105.00 bp China Shanghai General Motors Corp Ltd Private US$ 184.00 8 yrs 4m China Stae Development Bank of China Public US$ 220.00 8 years LIBOR:67.50 bp Colombia Banco Industrial Colombiano Private US$ 265.00 5 years LIBOR: 00.00 bp from I yr to I yr, I 10.00 bp from 2 yrs to 2 yrs, 1 15.OC bp from 3 yrs to 3 yrs, 125.00 bp from 4 yrs to 5 yrs Colombia EPSA Private US$ 200.00 2 yrs 6m LIBOR:200 00 bp from I mth to 6 mths, 250.00 bp from 6 mths to I yr, 300.00 bp from I yr to I yr 6 mths, 325 00 bp from I yr 6 mths to 2 yrs, 350.00 bp from 2 yrs to 2 yrs 6 mths Colombia Republic of Colombia Public JS$ 325.00 5 years LIBOR:65.00 bp Colombia Santa Fe de Bogota Distrito Capital Public US$ 275.00 7 years LIBOR:95.00 bp Czech Republic Aero Vodochody Private US$ 282.00 5 years Czech Republic EuroTel Praha Spol sro Public US$ 400.00 5 years LIBOR:25.CO bp Egypt, Arab Rep. Apache Corp Egypt Private US$ 250.00 5 years LIBOR:75.CO bp from I yr to 3 yrs, I00.0C bp from 4 yrs to 5 yrs Egypt, Arab Rep. Undisclosed Egyptian borrower Private US$ 202.45 4 years Ghana Ghana Cocoa Board (Cocobod) Public US$ 275.00 1 1 months LIBOR:35.00 bp India ABB Lummus Global Private US$ 325.00 3 years LCCOMM:25.00 bp Itdia Birla AT&T Communications Ltd (BCL) Prvate US$ 168.00 8 yrs 3m LIBOR:200.00 bp, LIBOR: 175.00 bp. LIBOR: 150.00 bp, LIBOR 125.00 bp India Reliance Petroleum Ltd Private JS$ 300.00 10 years LIBOR:250.00 bp, LIBOR:200.00 bp India Reliance Telecom Private US$ 187.50 9 years Indonesia CE Indonesia Funding Corp Private US$ 400.00 10 years LIBOR: 150.00 bp Indonesia Jakarta Water Private US$ 180.00 I2 years Indonesia Mandala Nusantera Ltd Private US$ 250.00 12 years LIBOR Indonesia MNL Indonesia Funding Corp, Private US$ 250.00 10 years 175.00 bp from I yr to 2 yrs, Jhermal Power Project 200.00 bp from 2 yrs to 3 yrs, 225.00 bp from 3 yrs Financial Flows and the Developing Countries Statistical appendix TALEA.3 New loan issues for 1997Q4 (continued) Loc.- 7mount greater than US$ 150 milhon Toto! amount Borrower Borrower (US$ equivoent, country Borrower nome type Currency mihons) Maturty Morgo Indonesia PT Astra International Inc Private US$ |60.00 3 years LIBOR: 120.00 bp, LIBOR:75.00 bp, LCCOMM:75.00 bp from Indonesia PT Narofel Dirgantara Perkasa Private US$ | 85.00 7 yrs 6m Indonesia PT Puncakjaya Power Prvate US$ 46000 12 years LIBOR: 150.00 bp from I yr to 2 yrs, I62.50 op from 3 yrs to 5 yrs, 175.00 op from 6 yrs to 8 yrs, 187.50 bp from 9 yrs to 10 yrs, 200.00 :p from II yrs to I2 yrs Malaysia Damansara Realty Sdn Bhd Private RM 232 16 2 yrs im LCCOMM: I00.C0 bp Malaysia Sistem Penyurian Trafik KL Barat Sdn Bhd, Private RM 34261 16 years CF: 100.00 bp SPRINT Project Malaysia I Titan Holdings Sdn Bhd,. Private US$ 277.20 10 years S BOR: [00.00 bip Titan Petrochemicals (M) Sdn Bhd, Titan Polyethylene (Malaysia) Sdn Bhd, Titan FP Polymers Malaysia Titan Hodings Sdn Bhd, Private US$ 39480 7 years SIBOR: 150.00 bp Titan Petrochemicals (M) Sdn Brid, Titan Polyethylene (Malaysia) Sdn Bhd, Titan PP Polymers Malaysia Titan Holdings Sdn Bhd, Private US$ 168.00 5 years SIBOR:1 12.50 bp Titan Petrochemicals (M) Sdn Bhd. Titan Polyethylene (Malaysia) Sdn Bnd, Titan PP Polymers Malaysia TNBjanamanjung Sdn Bhd Private US$ 2,000.00 Malaysia Wafer Technology (Malaysia) Sdn Bhd Private US$ 600.00 Mexico Bancomer SA Public US$ 500.00 2 years Mexico BAT Mexico SA de CV Private US$ I 152.00 5 years LIBOR:2000 bp Mexico Cementos Mexicanos SA de CV (CEMEX) Private US$ 300.00 3 years Mexico Petroleos Mexicanos (PEMEX) Public US$ 600.00 2 years Mexico Serticios Alestra Private US$ 240.00 8 years LIBOR: 18.75 bp Mexico United Mexican States (UMS) Public US$ 2.500.00 1 year LIBOR:20.00 bp Mexico Vitro Envases Norte SA Private US$ 165.00 5 years Morocco Jorf Lasfar Energy Company Private US$ 237.00 12 years UBOR:212.50 bp from I yr to 4 yrs, 225.00 bp from 5 yrs to 12 yrs Morocco i Jorf Lasfar Energy Company Private US$ 387.00 I2 years LIBOR.25.00 bp Peru Doe Run Private US$ 415.00 Philippines National Power Corp (NPC) Public US$ 160.00 4 years LIBOR. 125.00 be, LIBOR: 00.00 b Philippines Philippine Long Distance Telephone Co (PLDT) Public US$ 153.55 5 yrs 6m LIBOR:90,00 bp Poland Mobilrom Private US$ 1 6C.00 7 yrs 6m LIBOR:250.00 bp Poland PTK Centertel Private DM 201.97 1 year LIBOR:20.00 bop Poland Telekomunikacjia Polska Spolka Akcyna (TPSA) Public US$ 350.00 7 years LIBOR:30.00 bp Russia RAO Vysokoskorostnye Magistralh Public US$ 200.00 14 years Russia Rossijskoje A/O Gazprom (GazDrom) Public LS$ 3,000.00 8 years LIBOR:175.00 bp Russia Sberbank - Russian Savings Bank Public US$ 225.00 1 year LIBOR:200.00 bp Russia Sidanco Private US$ 190.00 6 months LIBOR: Slovak Republic Zeleznice Slovenskej Republiky (ZSR)-Slovak Rall Public US$ 200.00 I year LIBOR:200.00 bp South Africa ABSA Bank Ltd Private JS$ 225.00 I year LIBOR: I8.75 bp South Africa Billiton Finance BV Private US$ 1,000.00 7 years LIBOR:25.00 bp from I yr to 5 yrs, 32.50 bp from 6 yrs to7 yrs South Africa Sappi Ltd Private DFL 392.26 2 years GTCOMM:45.00 bp Thailand Export-Import Bank of Thailand Public USS 500.00 1 year LIBOR:45.00 bp Thailand Thai Airways Inernational Ltd Public US$ 203.30 1 1 years LIBOR:70.00 bp Thaland Thai Airways Inernational Ltd Pubilc US$ 160.00 II years Thaland Thai Petroleum Pipeline Co Ltc Private US$ 160.00 8 yrs 6m 1 15.00 bp Tnnidad and Tobago Amoco Trinidad Oil Co P-ivate US$ 390.00 1 year Turkey AKbank TAS P-ivate US$ 250.00 I year LIBOR:47.50 bp Turkey Istanbul Metro Project Private US$ 319.00 2 years Turkey Yapi ve Kredi Bankas AS Private US$ 200.00 1 year LIBOR.50.00 bp a LIBOR is London interbank offered rate; SIBOR is Singapore interbank offered rate: LCCOMM is lerter of credit commission. Scorce- Euromoney Loanware. February 1998 Statistical appendix New equity issues for 1997Q4 Total nominal Share amount offer (US5 price equr.alent. Share (US$ Issuer country millions) rpe' Issuer equalent) Argentina 170. I A.I.M.X Banco Rio de la Plata SA 15.00 417.5 A.I.M.X Banco Rio de la Plata SA 15.00 243.5 R.G.X IRSA Inversiones y Representaciones SA 3. I5 Total 831.1 Chile 54.9 A.M.X Distribucion y Serviao D&S SA 17.00 128.2 A.M.X Distribucion y Serviao D&S SA 17.00 20.0 I.A.M.X Linea Aerea Naconal Chile SA - LanChile 14.00 80.1 I.A.M.X Linea Aerea Nacional Chile SA - LanChile 14.00 Total 283.3 China 79.7 I.M Chongqing Iron & Steel Co Ltd 1.71 10.9 I.M Chongqing Iron & Steel Co Ltd 1.71 90.4 I Anhui Conch Cement Co Ltd 2.28 16.0 I Anhui Conch Cement Co Ltd 2.28 39.8 I.M Guangzhou Pharmaceutical Co Ltd 1.65 7 0 l.M Guangzhou Pharmaceutical Co Ltd I.65 Total 243 9 Hungary 20 2 l.V Raba Magyar Vagon- es Gepgyar Rt 1.475.00 47.3 G Graboplast Rt 9.50 1397 G OTP Bank - National Savings & Commercial Bank Ltd 6.010.00 432.2 A.I MATAV Rt 730.00 353.t A,I MATAV Rt 730.00 26.9 G.x PICK Szeged Rt I3.000.00 Total 1.019.9 India 418.5 G.V.X Mahanagar Telephone Nigam Ltd (MTNL) 11.96 Total 418.5 Indonesia 167.3 1.V PT Aneka Tambang Tbk 1.400.00 23.9 PT Bhakti Investama Tbk 700.00 54.7 PT Astra Agro Lestan Tbk 1.550.00 I PT Makindo Tbk Indonesia. Singapore 103.5 A,X.M Asia Pulp & Paper Co Ltd 11.50 Total 452.9 Jordan 32.7 G.X.V Arab Potash Co Ltd 9.03 Total 32.7 Latvia 25.t G.X.V AS Latvijas Unibanka 4.80 Total 25.6 Lebanon 81.0 G.X Banque Audi SAL 27.00 Total 81.0 Mauntius 70.0 F India Public Sector Fund Ltd 10.00 Total 70.0 Philippines 78.0 V.B Manila Electric Co 82.88 Total 78.0 Poland b6.0 I.G.X Prokom Software SA 75.00 28.7 G.X Kredyt Bank PBI SA I 1.9b Total 94.7 Slovak Republic 47 5 G.X Slovakofarma 9 60 Total 47.5 Thailand 11.6 X KCE Electronics Public Co Ltd 15 00 Total 11.6 Note Numbers may not sum to totals shown because of rounding. a. A is American depositor. B is bought deal/block. F is fund. G is global depositors. I is initial public offer. M is multitranche. V is privatization. and X is crossborder. Souce: Euromonev Bondware. Financial Flows and the Developing Cou ntries Statistical appendix Bank and trade-related nonbank claims US$ millions 1996Q4 Trade-related Bank Guaranteed nonbank Countqy group or country 1992 1993 1994 1995 1996Q2 Total claims claims claims All developing countries 804.246 813.265 862.38I 974.201 1.031.110 1.059.317 882.063 125.246 177.254 East Asia and Pacific 153.165 170.499 207.482 272.903 294.411 310.876 277.667 27.905 33.209 Europe and Central Asia 172.552 171.024 167.843 190.762 202.893 223.050 182.400 32.991 40.650 Latin Amenca and the Canbbean 280.324 282.013 290.146 304.431 332,911 321.903 289.151 29.144 32.752 Middle East and North Africa 98.620 95.500 98.215 101.026 97.139 97.048 58.399 20.334 38.649 SouthAsia 25.083 23.265 26.322 30.513 31.534 32.571 26.786 6.820 5.785 Sub-Saharan Africa 74.502 70,964 72.373 74.566 72,222 73.869 47,660 8.052 26.209 Severelyindebtedmiddle-income 242.785 243.652 247.550 257.876 287.737 271.192 240.536 21.593 30.656 Argentina 39.640 35.67I 38.942 40.711 40.590 43.459 37.88I 3.360 5.578 Bolivia 604 691 681 792 755 823 573 41 250 Brazil 74.069 76.872 70.897 82.344 85.488 92.214 83.431 3.246 8.783 Bulgaria 8,067 7.140 3.899 3.665 3.336 3.090 2.316 351 774 Cuba 4.764 4.397 4.568 4.973 4.518 4.660 2.938 128 1.722 Ecuador 4.198 3.661 3.926 3.434 3.863 4.142 3.514 270 628 Gabon 1.952 1.828 1.822 1.730 1.643 1.623 534 70 1.089 Jamaica 753 717 865 819 826 895 623 139 272 Jordan 2.869 2.700 2.575 3.141 3.343 2.984 1.283 570 1.701 Mexico 75.687 78.819 85.579 80.779 76.648 80.014 73.858 12.931 6.156 Panama 22.725 23.955 26.235 25.969 56.669 26.659 26.523 167 136 Peru 6.423 5.972 6.298 8.317 9.100 9.768 6.592 280 3.176 Synan Arab Republic 1.034 1.229 1.263 1.202 958 861 470 40 391 Severely indebted low-Income 58.425 56.457 56,084 56.727 54.765 54.626 30.091 5.332 24.535 Moderately Indebted low4ncome 26.579 24.397 27.042 31.363 32.434 33.740 27.307 6.754 6.433 Moderately Indebted middle-Income 291.390 283.426 290.144 317.321 322.282 347.393 275.841 56.257 71.552 Selectedcountriei 282.323 297.071 333.037 406.909 426.433 451.810 387.228 53.881 64.582 Chile 11.188 11.293 13.674 15.233 14.356 15.483 14.402 857 1.081 China 48.566 56.299 66.736 77,672 84.766 90.699 80.635 13.023 10.064 Colombia 8.795 9.244 10.330 11.722 12.041 14.904 13.615 1.833 1.289 C6te dIvoire 3,986 3.625 3.532 3.445 3.231 2.881 1.598 232 1.283 Egypt. Arab Rep. 11.886 10.448 10.049 11,506 11.370 11.377 3.074 1.005 8,303 Hungary 9.289 8.004 8.761 8.854 8.245 9.166 8.365 570 801 India 18.601 16.460 18.308 19.944 20,475 21.817 19.164 4.137 2.653 Indonesia 46.967 44.730 50.126 58,102 60.811 65.640 56.672 7.276 8.968 Malaysia 12.886 17.937 16.853 21.433 25.497 27,655 25.828 1.722 1.827 Morocco 7.994 7.410 7.669 7.349 7.176 7.101 4.739 2.342 2.362 Nigeria 13.386 12,348 12.480 13.126 12.439 12.260 2.609 1.000 9.651 Philippines 11.063 10.715 11.212 12,849 15.475 17.527 13.431 2.549 4.096 Thailand 30.552 37.872 60.204 100.245 105.099 106.107 99.266 2.986 6.841 Turkey 24,425 29.238 24.401 27.845 29,063 32.132 28.017 9.528 4.115 Uruguay 2.581 2.776 2.483 3. I5 2.835 3.858 3.740 165 i8 Venezuela 20.158 18.672 16.219 14.469 13.554 13.203 12.073 4.656 1,130 Offshore banking centers 135,967 147.872 154,194 195.194 250,342 251,236 243.127 5.966 8.109 Oilexporters 187.950 133,775 135.636 134,440 127.125 130.276 81.157 25.114 49.119 DRSreporters 142.242 87.385 82.166 83.099 78.352 79.756 45.879 21.641 33.877 DRS reporters 680,983 756.394 829,495 956,249 1.021,169 1.051,539 915,883 116,156 135.656 Note: See table A. II for country classifications. a. Most of these countries are also included in the indebted country groups. Source: OECD: Bank for Intemational Settlements. Statistics on External Indebtedness. FebuarY 1998 Statistical appendix Commercial bank claims on developing countries LIS5 midlions Claims Liabilities Countrv group or countrv I996Q3 1996Q4 1997QI i 997Q2 1996Q3 1996Q4 !997QI | 997Q2 Alldevelopingcountries 879.415 910.892 931.172 950.254 793.766 813.774 819.611 842.039 East Asia and Pacific 269.995 277.225 286.496 297.895 109.427 119.169 118.413 115.011 Europe and Central Asia 155.801 166.933 169.170 173.468 120.435 124.538 122.892 129.334 Latin America and the Caribbean 290.086 303.874 308.235 313.278 269,722 267.538 270.224 289.251 Middle East and North Afnca 87.537 84.348 85.165 81.637 183.747 187.410 188.483 187.335 SouthAsia 29.198 30.091 32.908 33.186 64.398 66.919 70.565 71.282 Sub-Saharan Africa 46.798 48.421 49.198 50.790 46,037 48.200 49.034 49.826 Severely indebted middle-income 239.128 246.637 249.099 252.337 200.180 200.703 200.072 214.304 Argentina 36.154 38.342 39.173 39.274 23.839 24.125 24.70 31.405 Bolivia 587 590 591 644 1,211 1.262 1.252 1.306 Brazil 79,e10 83.428 85.027 87.599 71.057 68.158 67.42) 66.533 Bulgaria 2.210 2.316 1.848 1,835 1.267 1.345 1.387 1.824 Cuba 3.080 2.935 2.750 2.628 811 986 1.083 1.094 Ecuador 3.368 3.320 3.505 3.486 3.093 3.390 3.525 3.629 Gabon 536 534 440 405 633 633 648 535 Jamaica 602 622 617 602 1.067 1.060 1.118 963 Jordan 1.128 1.142 1.089 1.101 6,903 7.084 6.948 7.024 Mexico 72.651 73.216 73.572 73.312 36.695 36.970 37.286 44.780 Panama 32.549 33.142 33.398 34.360 38,900 39.980 38.189 38.256 Peru 6.187 6.580 6.647 6.690 5.839 6.339 6.621 6.731 Syian Arab Republic 466 470 442 401 8,865 9.371 9,796 10.224 Severely indebted low-income 30.246 30.259 29.124 29.527 36.471 37.798 37.918 37.308 MNoderatel inebted lw-income 26.344 27.408 28.860 29.591 25,326 26.236 26.244 26.781 Moderatelyindebted middle-income 255.485 271.173 276.421 284.736 201,205 206.231 203.903 211.246 Selected countries" 368.333 381.229 393.255 408.066 234.924 244.203 242.831 241.859 Chile . 13,124 14.608 15.853 15.842 12.302 11.873 12.039 12.847 China 77.323 79.66! 81.386 85,699 59.903 66.706 64.283 65,062 Colombia 11.660 13.510 13.502 13.909 7.734 8.b61 9.254 9.665 C6te dIvoire 1.639 1.529 1.342 1.300 1.893 1.925 1.918 1.572 Egypt. Arab Rep. 3.070 3.069 3.201 3.673 24.795 24.493 24.873 25.684 Hungary 7.948 8.365 8.571 8.214 2.883 2.658 3.053 2.616 India 18.211 19.467 21.077 21.638 16.546 17.767 18.330 18.698 Indonesia 53.855 56.518 57.871 60.b26 10.823 13.488 12.299 10.968 Mala%sia 26.030 25.828 30.941 32.813 16,991 17.477 18.338 17.096 Morocco 4.87b 4.716 4.515 4.448 6.43I 6.280 6.007 6.307 Nigena 2.699 2.547 2.508 2.358 4.036 3.873 4.656 4.567 Philippines 11.740 13.352 14.856 16.501 7.456 7.904 8.568 7.700 Thailand 98.456 98.668 97.779 98.94 I 9,114 9.181 10.157 8.892 Turkey 23.136 24.828 24.729 26.874 22.779 21.518 18.299 18.655 Uruguay 3.708 3.720 4.066 4.212 6,791 6.714 b.875 7.394 Venezuela 10.858 10.843 11.058 11.018 24.447 23.685 23.882 24.136 Offshore banking centers 1.251.233 1.281.440 1.274.770 1.360.833 1.068.207 1.092.032 1.131.980 1.154.658 Oilexporters 97.639 94.185 97.038 92.854 182.125 187.096 191.041 187.133 DRS reporters 44.125 43.520 42.376 40.556 48,704 49.189 50.400 51.859 DRS reporters 885.442 919.957 932.275 960.071 628,494 644.499 645.562 674.867 Note See country classifications at the end of this statistical appendix. a. Most of these countnes are also included in the indebted country groups Source: Bank for Intemational Settlements. Internationai Banlng and Financial Airiket De%elopmernts. * Finanira Flows and the Developing omntfirs Statistical appendix Commercial bank claims on developing countries, by country of origin US$ millions Canada German, Country group or country 1995 1996Q3 1996Q4 1097QI 1996Q3 1996Q4 i997Q1 199-Q2 Alldevelopingcountries 17.411 18.007 19.271 20.790 181.638 235.156 177.952 17b.278 EastAsiaand Pacific 2.040 2.373 2.819 3.378 29.662 29,726 29.842 31.589 Europe and Central Asia 329 325 329 318 70.780 7 I.896 69.706 67.527 LatinAmericaandtheCanbbean 13,419 13.553 13.890 14.873 39.106 39.125 39.569 38.841 Middle East and North Africa 471 432 610 665 19.394 18.888 16.858 15.673 South Asia 796 971 I.222 1.343 I I.555 65.464 10.994 11.052 Sub-SaharanAfnca 356 353 401 214 11.141 10.056 10.983 11.596 Severely indebted middle-Income 6.762 7.058 7.287 7.700 34.275 34.021 34.325 33.691 Argentina 1.041 1.195 1.382 1.410 8.650 8.642 8.627 8.914 Bolivia - - - - 449 423 387 384 Brazil 2.558 2.325 2.167 2.1 14 1 1.638 11.275 11.423 11.069 Bulgaria - - - - 1.057 973 893 884 Cuba - - - - .384 1.361 1.298 1.217 Ecuador - - - - 190 201 193 1Q4 Gabon - - - - 52 48 46 44 Jamaica - - - - - - - Jordan - - - 532 511 479 470 Mexico 2.746 3.018 3.143 3.654 5.756 5.986 o.524 6.004 Panama 303 399 468 404 2.795 2.834 2.909 2.998 Peru 115 121 127 118 1.075 1.091 917 89 Syrian Arab Republic . - - - 697 678 629 614 Severely indebted low-income - 6.585 6.496 6.448 6.I97 Moderately Indebted low-income 253 370 384 449 10.981 64.603 10.532 10.608 Moderately Indebted middle-income 2.485 2.288 2.322 2.570 77.892 77.969 75.200 75.247 Selectedcountries 3.713 3.871 4.332 5.067 62.207 I16.653 b1.862 63.934 Chile 771 580 733 883 1.774 1.870 1.922 1.822 China 567 602 821 832 8.373 8.526 8.615 9.686 Colombia - - - 1.918 1.953 1.961 2.058 C6te dIvoire - - - - - 366 353 331 322 Egypt. Arab Rep. -- - - 2.902 2.87 I 2.702 2.648 Hungary - - - 6,127 6.258 6.096 5.615 India 253 370 384 449 8.559 62.721 8.401 8.t19 Indonesia - - - - 9.056 8.98 I 8.646 8.580 Malavsia 364 514 470 893 1.749 1.864 1.988 2.186 Morocco - - - 1.222 1.192 1.119 1.148 Nigeria - - . 489 477 442 421 Philippines 273 383 413 507 1.073 1.244 1.228 1.365 Thailand 836 875 1.114 1.146 8.324 8.047 8.375 9.042 Turkey - - --- - 9.145 9.277 Q.092 9.513 Uruguay - -- - - - - - - Venezuela 649 548 397 356 1.130 1.019 943 908 Offshore banidng centers 14.175 15,552 15.695 18.362 127.383 I33.504 135.688 I36.839 OH exporters 1.412 1.349 1.170 1.177 15.589 15.019 13.281 12.147 DRS reporters 1.283 1.248 1.086 1.109 7.348 6.705 5.958 5.641 DRS reporters 13.118 13.800 14.560 15.819 169,680 224.733 169.032 166.491 (Tadem ari wp next /ia. February 1998 * Statistical appendix TALEA.7 Commercial bank claims on developing countries, by country of origin (continued) US$ mflfons Italy Netherlandsc Country group or country 1995 1996Q4 1997Q! 1997Q2 1995Q2 1995 1996Q2 1996Q4 All developing countries 22,869 27,822 27,309 23,478 29.096 32,315 35,053 38,733 East Asia and Pacific 33 56 1 13 97 6,323 7,389 8,395 9,398 Europe and Central Asia 8,001 6,495 5,889 6,026 5,321 5,437 6.3 17 8,073 Latin America and the Caribbean 9,876 11,053 1 1,241 1 1,916 [2,848 14,970 15.943 16,140 Middle East and North Africa 6 I 619 48I 377 2,282 2,074 1,554 1,914 South Asia 3,408 4,128 4,522 473 1,000 1,247 1,508 1,529 Sub-Saharan Africa 939 776 606 522 1,322 1,198 1.336 1,679 Severely indebted middle-income 7,801 9,166 9,317 9.859 8865 I0,726 11,667 11,650 Argentina 3.555 3.949 3,847 3,960 1,732 1,797 2,251 2.540 Bolivia 4 I 3 1 - - - Brazi 2,15 2,610 2.884 3,135 3,376 4,166 5,387 4,791 Bulgaria 337 258 234 210 - - - Cuba - - - - - Ecuador 76 90 84 86 264 319 345 326 Gabon -- - - Jamaica --- Jordan _ - - - - - Mexico 1,449 1,573 1,512 1,668 2,584 3,617 2,800 3,008 Panama _ - - - 909 573 580 551 Peru 264 686 753 799 - 252 304 434 Syrian Arab Republic - - - - - - Severely indebted low-income 538 397 295 233 - Moderately indebted low-income -- 907 1,048 1,242 1,265 Moderately indebted middle-income 8,904 7,755 7,228 7,294 11,596 12,374 13,135 14.806 Selected countriesb 2,978 2.825 2.826 2,678 11,573 13,044 14,536 16,438 Chile 391 372 398 462 653 810 1,302 1,219 China - - 1,147 1,418 1,768 2,306 Coombia 429 512 510 528 765 706 736 817 C6te d'lvoire 15 14 14 14 - - Egypt, Arab Rep. - - - - - Hungary 264 261 255 268 354 457 433 878 India - - - - 472 537 785 817 Indonesia - - - 3,265 3.584 3,663 3,754 Malaysia - - - 474 476 625 760 Morocco 274 265 255 90 - - - Nigeria 522 383 281 220 - Philippines 33 56 I13 97 532 846 8I7 887 Thailand - - - - 907 1,065 1,521 1,692 Turkey - - - - 1,537 1,683 1,694 1.947 Unuguay 296 304 378 380 697 699 669 658 Venezuela 753 659 624 619 771 762 522 703 Offshore banking centers 20,592 23,205 23,718 24,099 17,492 20,202 21,851 20,840 Oil exporters 7,251 5,737 5.363 4,906 2,588 2,447 2,028 2,580 DRS roporters 7,251 1,042 905 838 1,997 1,929 1,845 1,757 DRS reporters I 1,449 17,581 17,187 17,750 23,170 27,063 30,965 32,769 Financial Flows and the Developing Countries Statistical appendix T'LEA.7 Commercial bank claims on developing countries, by country of origin (continued) US i millions Switzerland United Kingdomc Country group or country 1993 1994 1995 1996 1993 1994 1995Q4 1996Q4 All developing countries 28,330 32,253 32,560 31,234 53,440 57,505 43,005 49,923 EastAsiaand Pacific 2,930 3,044 4,762 5,479 7,713 9,6i2 10,014 15.378 Europe and Central Asia 4,465 4,353 4,052 4,935 9,301 9,866 5,851 6,447 LatinAmericaandtheCaribbean 13,453 16,566 15,292 13,0I4 22,784 22,973 16,723 17,268 Middle East and Norh Africa 3,569 3,789 4, 62 3,209 5,046 6,195 3,060 3,423 South Asia 975 1,019 1,485 1,468 1,775 2,297 1,792 2,095 Sub-Saharan Africa 2,937 3,482 2,807 3,129 6,775 6,562 5,565 5,312 Severely indebted middle-income 1 1,289 13,774 12,538 9,785 18,634 18,890 13,2 8 13,647 Argentina 1,365 1,821 2,970 2,250 3,088 3,883 2,320 2,167 Bolivia 25 43 47 56 49 59 - 33 Brazil 3,023 2,232 2,088 3,900 5,572 5,I00 4,242 4,552 Bulgarna 264 75 40 56 231 89 17 17 Cuba 122 136 121 89 56 56 - - Ecuador I45 163 I 6 97 474 483 518 563 Gabon 7 10 10 15 30 - - Jamaica 2 2 I8 3 68 95 74 84 Jordan 82 96 I 0 190 302 282 107 99 Mexico 2,860 5,211 3,199 - 7,012 6,895 4,484 4,58I Panama 3,222 3,749 3,252 2,575 1,419 1,671 1,175 1,257 Peru 151 203 535 530 302 277 281 294 Syrian Arab Republic 21 33 34 24 31 - Severely indebted low-income 1,733 1,738 1,553 1,582 2,388 2,480 2,139 2,891 Moderately indebted low-income 1,08I 1,077 1,578 1,527 1,898 2,326 1,763 2,053 Moderately indebted middle-income 7,379 7,612 8,010 9,739 16,906 17,423 12,728 14,987 Selected countriesb 7,847 8,069 9,864 11,539 16,488 17,995 16,165 22,427 Chile 690 1,066 1,073 1,178 729 920 551 582 China 537 680 1,060 1,339 2,369 3,223 2,551 5,704 Colombia 374 561 625 759 810 1.028 901 1,075 C6tedlvoire 99 115 84 - 123 172 155 190 Egypt, Arab Rep. 339 287 317 270 726 766 716 991 Hungary 77 88 78 130 226 365 51 135 India 631 538 971 951 1,162 1,507 1,157 1,435 Indonesia 593 742 1,128 1,595 2,031 2,467 2,727 3,833 Malaysia 509 295 313 482 1,094 1, 11 1,158 1,418 Morocco 117 141 192 99 263 272 84 80 Nigeria 109 68 55 137 375 239 99 128 Philippines I65 I58 403 553 885 702 63I 1,173 Thailand 1,010 1,164 1,447 L486 1,310 2,014 2.822 3,128 Turkey 1,534 1,295 1,295 1.463 1,658 1 00 816 1,044 Uruguay I 218 242 180 173 251 333 327 306 Venezuela 844 629 641 924 2,476 1.746 1,419 1,205 Offshorebankingcenters 21,244 21,138 24,376 26,673 47.343 51,506 55,488 61,960 Oil exporters 4,398 4,586 4,826 4,334 10. 61 9,563 5,182 5,240 DRS reporters 2,157 1,970 2,002 2, 44 6,9 9 4,902 2,501 2.521 DRS reporters 25.727 28,997 30,681 29,314 42,632 47,359 38,214 48.380 (Table continues on next page.) February 1998 Statistical appendix TABLE A.7 Commercial bank claims on developing countries, by country of origin (continued) US$ milions United Statesc Country group or country I 996Q3 i 996Q4 1997Q I 997Q2 All developing countries I04,661 II6,635 108,922 93,396 EastAsiaand Pacific 17,076 19,845 17,051 14,901 Europe and Central Asia 11,416 I4,660 I3,466 13,63I Latin America and the Caribbean 67,525 72,656 66,983 54,952 Middle East and North Africa 3,675 4,043 5,450 3,447 South Asia 2,182 2,299 2,406 2.014 Sub-Sahararn Africa 2,787 3, 132 3,566 4,451 Severely indebted middle-income 50,149 54,518 49,688 42,069 Argentina 13,377 13.346 9,685 8,051 Bolivia 210 I96 I47 134 Brazi 16,043 18,949 16.407 16,059 Bulgaria 45 178 241 326 Cuba - - - Ecuador 1,073 1,128 1,I57 933 Gabon 4 5 4 4 Jamaica 153 196 194 127 Jordan 32 74 68 63 Mexico 17,220 18,086 19,053 14,740 Panama 857 948 1,1 .3 575 Peru I,135 1,412 1,619 1,052 Syrian Arab Repubic - - - 5 Severely indebted low-income 887 978 1,070 542 Moderately indebted low-income 2,025 2, II5 2,188 L843 Moderately indebted middle-income 30,387 36.594 33,007 29,800 Selected countriesb 34,439 38.473 35,1 11 30,898 Chile 3,857 4.363 4,I49 3,889 China 2,4I 8 2,715 2.685 2,522 Colombia 3,414 4,230 3,961 3,1 18 C8te dlvolre 38 45 39 100 Egypt, Arab Rep. I64 203 187 244 Hungary I 590 713 824 428 India 1.506 1,569 1,595 1,629 Indonesia 3.684 5,446 4,770 4,I88 Malaysia 2,388 2,37I 2,693 2,I51 Morocco 424 458 609 459 Nigeria 162 245 288 181 Philippines 3,541 3,974 2,711 1,684 Thailand 5,045 5,339 4,192 4,356 Turkey 2,126 2,267 2,383 2.305 Uruguay 1,422 1,446 1,035 773 Venezuela 3,660 3,089 2,990 2871 Offshore banking centers 30,433 36,727 37,888 20,557 Oil exporters 9,652 12.472 8,049 6,259 DRS reporters 7,242 9.751 4,300 3,373 DRS reporters 99,472 108.056 106,734 98,069 - indicates no oans in the period Note This table shows the latest available data from each major creditor country. See table A.1 I for country classifications, a Partly consolidated aggregate claims of banks and tneir worldwide operations. b. Most of these countries are also included in the indebted country groups. c. Consolidated claims of banks and their worldwide operations. Source Deutsche Bundesbank, Zah!urgsbilorzstatistfk; Banca d'Itala, Boietrio Economico- De Nederlandsche Bank, QuGrterly Bu!ietin; Banque Nationale Suisse, Les Banques Suisses; Bank of England, Statistica Abstect, Pon: i. Federal Financial Institutions Examination Council, US Country Exposure Lending urvey. Financial Flows and the Developing Counties Statistical appendix TA: LE A 8 Maturities of bank claims on developing countries US millions 1997Q2 More than Less than / year and less More than Estimated Short term Country group or country I996 Total I year than 2 years 2 years Unollocoted short term (9'o of total) All developing countries 787,242 836,377 448,378 44,693 282,709 60,597 394,601 47 East Asia and Pacific 218.104 230,904 135,975 12,898 65,928 16,103 121,964 53 Europe and Central Asia 168,981 190,444 98,176 12,328 62,695 17,245 84,556 44 LatinAmericaandthe Caribbean 272,247 281,585 143.963 11,055 105,678 20,889 127,932 45 Middle East and North Africa 58,274 57,241 31,926 3,889 19,954 1,472 27,1 13 47 South Asia 24,222 26,469 1 1,771 1,440 1 1,517 1,741 10,014 38 Sub-Saharan Africa 45,414 49,734 26,567 3,083 16,937 3,147 23,022 46 Severely indebted middle-income 222,423 227,397 120,198 8,566 80,234 18,399 107,583 47 Argentina 44,819 44,445 23,891 1,662 15,207 3,685 20,867 47 Bolivia 505 505 325 I3 68 99 317 63 Brazil 67,954 71,118 44,223 2,193 19,555 5,147 41,060 58 Bulgaria 2,427 2,264 691 I 67 1,168 238 477 21 Cuba 3,023 2,774 1,663 25 1,067 19 1,644 59 Ecuador 3,194 3,527 1,702 77 1,338 410 1,588 45 Gabon 546 419 239 55 118 7 140 33 Jamaica 868 867 463 28 271 105 427 49 Jordan 960 928 582 59 151 136 486 52 Mexico 61,335 62,072 28,226 2,659 24,647 6,540 24,227 39 Panama 28,354 30,045 12,502 1,328 14,636 1,579 10,946 36 Peru 7,963 8,013 5,368 278 1,946 421 5,092 64 Syrian Arab Republic 475 420 323 22 62 13 312 74 Severely indebted low-income 27,415 26,389 12,573 1,760 1,026 1,030 10,372 39 Moderately indebted low-income 24,381 26,59. 12,051 1,402 11,468 1,670 10,292 39 Moderately indebted middle-income 280,447 306.1 18 158,484 17,883 106,504 23,247 137,465 45 Selected countriesa 326,541 346,579 187,369 20,605 1 14,721 23,884 165,018 48 Chile 15,155 17,573 7,615 673 8,698 587 6,700 38 China 55,002 57,922 30,137 3,748 19,426 4,611 25,938 45 Colombia 16,772 16,999 6,698 1,423 8,503 375 4,873 29 C6te dIvoire 1,629 1,479 1,238 25 203 13 1,209 82 Egypt, Arab Rep. 3,532 4,166 3,065 133 9. l 57 2,849 68 Hungary 11,701 10,851 4,018 964 3,653 2,216 3,346 31 India 16,934 18,780 7,745 1,114 8,409 1,512 6,576 35 Indonesia 55,523 58,726 34,661 3,541 17,008 3,516 31,072 53 Malaysia 22,231 28,820 16,268 615 8,248 3,689 15,547 54 Morocco 4,407 4,242 1,564 275 2,191 212 1,182 28 Nigeria 2,288 1,946 784 135 979 48 607 31 Philippines 13,289 14,115 8,293 326 4,001 1,495 7,728 55 Thailand 70,181 69,382 45,567 4,592 I6,491 2,732 40,738 59 Turkey 22,625 25,060 13,067 2,516 8,087 1,390 10,876 43 Uruguay 4,190 4,370 3,020 104 1,196 50 2,881 66 Venezuela 11,082 12,148 3,629 421 6,717 1,381 2,896 24 Offshore banking centers 651,696 710,060 525,339 14,682 127,457 42,582 512,639 72 Oil exporters 131,779 143,642 76,693 8,697 53,921 4,331 66,710 46 DRS reporters 105,027 1 14,744 58,030 7,809 45,038 3,867 48,883 43 DRS reporters 748,866 776,858 431,96I 40,319 240,533 64,045 385,190 50 Ncte: See country classifications at the end of this statistical appendix. a. lost of these countries are also included in the indebted country groups. So-rce: Bank for International Settlements, The Maturity end Sectoral Distnbution of iternational Bank Lending. Februay 1998 Statistical appendix ,ABLEA.9 Funds raised on international capital markets US$ millions Country group or country 1993 1994 !995 1996 1996Q2 1996Q3 1996Q4 1997Qi 1997Q2 1997Q3 All developingcountries 64,326 63,632 73,934 125,506 29,263 32,901 29,023 33,214 50,973 43.452 Bonds 47,520 39,867 40,888 95,275 20,515 24.213 21,593 21,514 35,055 26,159 International 33.812 30,519 25,959 71,710 13.124 18.278 16,409 17,799 25,536 21,440 Foreign 13.708 9,348 14,929 23.565 7.391 5,935 5, 1 84 3,715 9,5 19 4,7 9 Loans 16.806 23,765 33,046 30.231 8.748 8,688 7,430 11,700 I5.9 8 17,293 International 16,609 23,671 33,046 29.983 8.528 8,688 7,430 1 1,600 15,856 17,283 Foreign 197 95 - 248 220 - - 100 62 10 East Asia and Pacifc 18,894 27.I26 25,452 33,151 7,654 10,74I 8.783 9,005 I 1.954 8,000 Europe and CentralAsia 16,896 10.473 14,046 26,458 4,315 3,107 3,434 3,413 10,393 5,394 Latin America and the Caribbean 27,338 20.438 24,938 56,020 13,758 16,330 14.657 16,178 24,462 24,135 Middle East and North Africa 457 2,074 2,869 1,882 220 784 633 1,514 1,772 1,123 SouthAsia 567 1,656 2,954 3,667 1,324 1,087 843 2, 29 1,034 2,386 Sub-Saharan Africa 174 1,864 3,674 4,328 1,992 852 673 975 1,358 2,414 Severelyindebted middle-income 22,674 18,363 20,835 47,863 11,925 14,322 12,238 12,615 22,762 20,690 Argentina 6,473 5,716 6,983 14,487 3,613 2,393 5,038 5,082 2,949 7,352 Bolivia 10 - - - - - - - - Brazil 6,449 4,01 1 6.635 13,020 3,479 2,420 4,796 2,790 7,923 6,348 Bulgaria - - - - - 32 - Cuba -- - - - - - Ecuador - I - - - 625 - Gabon - - - - - jamaica - - - - - - 200 - Jordan - - 50 - - - - 100 Mexico 9,751 8.526 6,957 20.253 4,833 9,509 2,301 4,173 9,908 5,775 Panama - - 150 28 - 28 500 I25 1 15 Peru - 00 50 75 - - 75 70 1,000 - Syrian Arab Republic - - _ - - - - - Severely indebted low-income 84 557 563 560 _ - - 130 Moderately indebted low-income 657 1,656 2,954 3,667 1,324 1,087 843 2,079 1,074 2,337 Moderately indebted middle-income 1 25,207 19,209 26.930 47,628 8,131 0,789 8,847 1,328 16,104 I3,091 Selected countriesa 34,669 33,623 39.086 49,268 12,664 14,706 12,880 15.786 16,12I [4,794 Chile 775 80 1,448 4,102 703 1,277 990 1,773 303 830 China 6,756 8,097 6,258 7,836 1,838 2,977 1,821 2,235 3,718 2,413 Colombia 621 1,172 2,082 3,189 1,040 200 1,204 1,490 315 940 C6te dlvoire - - - - Egypt, Arab Rep. - 18 58 - - 200 I00 Hungary 5,071 2,541 3,771 646 501 - - - India 475 1.461 2,263 3.112 892 1,064 743 1,813 734 2,052 Indonesia 3,726 6,I99 7,588 10,772 2,508 3,825 2,038 3,509 3.570 3,281 Malaysia 1,61 3.526 3,205 3,347 667 - 2,380 1,143 1,881 683 Morocco - - 25 432 - 399 33 46 - 164 Nigeria - - - - - - - - Philippines 1,250 1,164 1,272 3,779 945 1,589 1,098 1,018 860 556 Thailand 5,550 7,910 6,634 7,417 1,696 2,350 1,446 I,00 I,925 1,037 Turkey 5,763 851 3,929 3,920 1,784 494 1,052 1,359 1,501 1,913 Uruguay 140 203 206 100 - 100 - 100 79 335 Venezuela 2,931 400 346 616 90 431 75 200 1,035 490 Offshore banking centers 9,476 8,574 4,939 6,206 1,380 1,686 1,518 4.491 4,762 2,369 Oil exporters 3,503 2,817 3.949 4,961 50 681 3,480 3,142 8,015 3,255 DRS reporters 3,157 1,498 1.566 2,636 90 431 1,710 1,699 6,965 2,730 OECD countries 510,550 498,211 723,203 872,107 224.340 206,424 221,389 257,475 264,367 243,450 Multilateral institutions 20,711 12,373 17,674 24,866 5,743 6.991 6,330 7,612 7,433 6,942 Totalb 595,651 574,679 815,361 1,024,917 259.535 246.566 258,512 298,551 323,153 294,.144 - Not available. Note: See country classifications at the end ofthis statistica: appendix. a. Most of these countres are also included in the indebted country groups. b. Includes all developing countries, offshore banking centers, OECD countries, multilateral institutions, and the category 'other." Source: OECD, Finonciol Statistics N nth)y. Port !. Financial Flows and the Developing Countries Statistical appendix /,-,LE A. 0 Secondary market debt (bid) prices PErcentoge of face value Country group or country 1995Q2 1995Q3 1995Q4 i 996Q I 1996Q2 1996Q3 1996Q4 1997Q] 1997Q2 / 997Q3 1997Q4 Severely indebted middle-income Argentinaa 48 47 56 52 55 55 60 65 66 75 72 Brazil' 45 48 52 51 53 57 61 65 65 72 70 Bulgaria 50 51 53 50 52 51 53 60 68 80 76 Ecuador' 48 49 50 54 36 37 - 45 44 55 53 Jamaica 82 - - 76 74 77 81 83 83 95 93 Jordan 39 44 47 54 53 57 58 62 61 70 67 Mexico 60 60 64 64 66 67 71 75 74 82 82 Panama 53 59 - 45 48 48 51 56 57 72 74 Other selected countries Albania 18 21 22 14 13 12 13 12 9 7 12 Algeria 28 - - 46 55 - 61 71 71 79 82 CostaRicad 51 52 54 60 59 67 75 78 78 81 82 C6tedlvoire 15 I6 16 20 19 19 26 37 39 38 34 Egypt, Arab Rep. 48 48 48 49 47 - 47 47 47 49 49 Honduras 27 - - - 35 38 40 40 40 40 40 Mexicoe 60 60 64 64 66 67 71 75 74 82 82 Nicaragua 5 - 8 9 7 10 12 15 12 13 12 Nigeria 43 44 48 52 53 56 63 68 65 72 70 Philippinesf 73 74 74 79 80 81 87 88 87 88 84 Russian Federationg 32 33 34 34 42 61 76 81 85 104 88 Venezuelae 50 51 59 56 60 65 79 76 75 84 85 - Not available. a. Guaranteed Refinancing Agreement (GRA). Prices after March 993 refer to par bonds offered under the Brady initiative. b. Multi-Year Deposit Facility Agreement (MYDFA). Prices after April I994 refer to par bonds offered under the Brady initiative. c. Multi-Year Refinancing Agreement (MYRA). d. Prices refer to Series A par bonds offered under the Brady initiative. e. Prices refer to par bonds offered under the Brady initiative. f. Public sector restructured debt, including Central Bank of the Philippines. Prices refer to restructured loans offered under the Brady initative. g. These are nonperforming loans ofthe Russian Vnesheconombank. Sc.rce: Salomon Brothers; Euroweek; Emerging Market Debt Report; international Financing Review; and World Bank data. February 1998 Statistical appendix TABLE A. Emerging stock markets Market capitalization Value of stock traded Pnce-eomings ratio (US$ millions) (US$ milions) (percent) Economy i 997Q/ 1997Q2 1997Q3 1997Q 1997Q2 1997Q3 1997QI i 997Q2 I 997Q3 Argentina 48,942 55,674 60,476 5,644 6,531 7,640 31.8 20.7 25.4 Brazil 253,71I 316,697 307,370 39,240 55,770 55,050 18.3 12.5 16.4 Chile 75,275 84,936 83,598 1,876 2,140 1,607 18.7 16.5 18.0 China 164,268 194,693 172,203 88,894 150,655 68,218 43.9 43.6 39.9 Colombia 19,576 19,892 20.357 280 494 539 13.2 16.7 15.3 Greece 31,485 35,304 39,797 3,702 7,164 3,844 17.6 17.5 20.6 Hungary 6,403 7,885 8,771 1,018 1,322 249 29.1 18.7 20.1 India 129,314 164,384 151,432 12,626 1 1,702 16,280 16.8 14.1 15.2 Indonesia 95,049 106,750 62,292 1 1,791 12,583 12,048 24.4 15.0 15.9 Jordan 4,857 5,026 5,51 1 74 1 18 155 12.8 4.4 14.8 Malaysias 326,782 282,952 173,417 56,302 45,425 34,699 22.9 12.5 16.8 Mexico 1 14,953 131,779 165,534 10,086 10,845 18,884 20.7 19.9 23.1 Nigeria 4,346 4,429 3,726 29 33 44 13.1 9.6 10.6 Pakistan 12,015 11,607 12,768 1.768 1,689 4,481 14.5 16.7 16.3 Peru 16,412 19,574 19,041 882 968 1,008 16.6 13.6 14.5 Philippines 85,872 74,382 41,144 7,902 5,288 5,505 15.9 10.4 11.4 Poland 9,768 11,006 14,078 2,290 1,850 2,045 12.8 10.4 12.7 Portugal 27,125 32,315 36,772 3,030 4,809 6,103 22.6 17.8 23.0 South Africa 273,986 281,073 269,968 9,194 11,375 12,636 15.2 12.6 14.0 Sri Lanka 1.914 2,381 2,389 38 109 91 13.4 12.2 13.3 Taiwan (China) 321,170 335,502 326,497 280,906 351,669 404,035 35.8 26.3 34.0 Turkey 44,348 43,266 55,172 15,055 8,554 1 1,249 15.5 18.6 17.4 Venezuela 9,939 13,604 16,984 490 819 1.646 12.8 14.5 16.2 Zimbabwe 4,574 4,699 4,635 154 147 163 16.8 16.2 15.4 Europe and Central Asia 92,004 97,461 1 17,818 22,065 18,890 17,387 75.0 65.2 70.8 a. Data for Malaysian-incorporated companies only. Source: International Finance Corporation, Emerging Stock Markets Foctbook. 0 FinancialFlows and the Developing Countries Statistical appendix Country groups East Asia and the Pacific Kazakhstan* Ecuador* Tunisia* Guinea-Bissau* Cambodia* Kyrgyz Republic* El Salvador* Yemen, Rep.* Kenya* China* Latvia* Grenada* Lesotho* F Ji* Lithuania* Guatemala* South Asia Liberia I -donesia* Macedonia, FYR* Guyana* Afghanistan** Madagascar* K ribati* Malta* Haiti* Bangladesh* Malawi* Korea, Dem. Rep.** Moldova* Honduras* Butan* Mali* Lao PDR* Poland* Jamaica* India Mauritania* Malaysia* Portugal* Mexico* Maldives* Mauritius* Mongolia* Romania* Nicaragua* Nepal* Mayotte Myanmar* Russian Federation* Paraguay* SrkLakia Mozambique* Papua New Guinea* Slovak Republic* Peru* Namibia** Prilippines* Slovenia* St. Kitts and Nevis* Sub-Saharan Africa Niger* Samoa* Tajikistan* St. Lucia* Angola* Nigeria* Solomon Islands* Turkey* St. Vincent and the Benin* Rwanda* -hailand* Turkmenistan* Grenadines* Botswana* Sdo Tom6 and Principe* onga* Ukraine* Suriname** Burkina Faso* Senegal* anuatu* Uzbekistan* Trinidad and Tobago* Burundi* Seychelles* /ietnam* Yugoslavia, FR (Serbia and Uruguay* Cameroon* Sierra Leone* Montenegro)* Venezuela* Cape Verde* Somalia* Erl a Latin America and Middle East Central African Republic* South Africa* Albania* the Caribbean and North Africa Cha * Swaziland Armeniae Antigua and Barbuda** Algeria* Comgose Tanzania .Azerbaijan* Argentina* Egypt, Arab Rep.* Congo, Dam. Rep. T Belarus* Belize* Iran, Islamic Rep.* Cne do Ri* Uganda* aosnia and Herzegovina Bolvia* Iraq** Djibouti* Zambia* Sulgaria* BraziPl jordan* Dbutia Zimbabwe* roatia* Chile* Lebanon* Equatorial Guinea* Czech Republic* Colombia* Libya" Ethiopia* Estonia* Costa Rica* Morocco* Eritrea :eorgia* Cuba** Oman* Gabon * ibraltar** Dominica* Saudi Arabia* Gambia, The* -iungary* Dominican Republic* Syrian Arab Republic* Gianea* Guinea* Severely indebted Severely indebted low- Liberia Moderately indebted Colombia middle-income income countriesa Madagascar low-income countriesa Georgia countriesa Afghanistan* Malawt Bangladesh Hungary Algeria Angola Mali Benin Indonesia 4rgentina Bosnia and Herzegovina Mauritania Chad Macedonia, FYR Bolivia Burkina Faso Mozambique Cambodia Malaysia Brazil Burundi Myanmar Comoros Mexico Bulgaria Cameroon Nicaragua Gambia, The Morocco Cuba** Central African Republic Niger India Panama Ecuador Congo. Dem Rep. Nigeria Kenya Philippines Gabon Congo, Rep. Rwanda Lao PDR St. Vincent and the Indonesia C6te d1voire Sao Tom and Principe Pakistan Grenadines Iraq* Equatorial Guinea Sierra Leone Senegal Thailand Jamaica Ethiopia Somalia Togo Tunisia Jordan Ghana Sudan Zimbabwe Turkey Peru Guinea Tanzania Uruguay Syrian Arab Republic Guinea-Bissau Uganda Moderately indebted Venezuela Guyana Vietnam middle-income Haiti Yemen, Rep. countries' Honduras Zambia Chile Offshore banking Hong Kong, China Vanuatu* Congo, Rep.* Oman* centersb Lebanon* Former Soviet Union* Qatar 3ahamas Liberia* Oil exporters Gabon* Saudi Arabia* 3ahrain** Macao Algeria* Iran, Islamic Rep.* Trinidad and Tobago* Barbados* Netherlands Antilles Angola* Iraq** United Arab Emirates Bermuda Panama* Bahrain* Libya** Venezuela* Cayman Islands Singapore Brunei Nigeria* DRS reporter.** Non-DRS economy. The remaining countries include selected high-income and non-OECD middle-income countries. The Debtor Reporting System (DRS), set up in 1951 to monitor statistics on the external debt of developing countries, is maintained bythe staff of the International Development Data Group of the World Banks International Economics Department. The World Bank is the sole repository for these statistics on a loan-by-loan basis. 4ote: Country group composition has been modified to reflect the annual updating of GNP per capita and related debt indicators, a. All countries in the group are DRS reporters, except those for which it is otherwise indicated. D. Offshore banking centers are not included in any other country group except for oil exporters. February 1998 ANDTHE DEVELOPING COUNTRIES AWorld Bank Business Quarterly Financial Flows and the DeveJoping Countries is produced by the International Finance Division of the International Economics Department of the World Bank. For information about the contents, call Sheilah King-Watson, 202-473-3730 or fax 202-522-3277. The opinions expressed are those of the authors and should not be attributed in any manner to the World Bank, to its Board of Executive Directors, or to the countries they represent. © 1998 The International Bank for Reconstruction and Development/The World Bank 1818 H Street, NW, Washington, DC 20433, USA All rights reserved Manufactured in the United States of America g 40 Vol. 5, no. 2 -- - ISSN 1020-0975 ISBN 0-8213-4193-6 @ Printed on recycled paper