21975 Vol. 1 No.1 November 1994 FILE COPY CONTENTS & SUMMARY INTERNATIONAL LENDING EQUITY PORTFOLIO AND CAPITAL MARKETS AND FOREIGN DIRECT INVESTMENT U GLOBAL BORROWING PAGE 4 In the second quarter of 1993, $189.5 billion * EMERGING STOCK MARKETS PAGE 12 was raised in international capital markets, The IFC's dollar-based emerging-markets down 10 percent on the first quarter because composite price index rose by 8.9 percent in of weak economic activity in major industrial the third quarter, with most markets showing countries. At $106.9 billion, gross bond issues big gains. Foreign buying was strong in some were also lower. Lending picked up, thanks markets. Pension reform in Argentina is ex- more to special factors than to any improve- pected to boost development of the domestic ment in underlying fundamentals. Equity is- capital market, and India is looking to improve sues were sharply higher. liquidity in its stock markets. * DEVELOPING-COUNTRY U NEW EQUITIES, QUASI-EQUITIES, BORROWING PAGE 5 AND DERIVATIVES PAGE 14 Developing countries raised $14.7 billion in Developing-country corporations were active bonds and loans in the second quarter of 1993, in international equity markets, thanks to in- about the same as in the first quarter. Bond vestor demand fueled by the strong perfor- issues reached $12.2 billion in the third quar- mance of emerging markets. Borrowers from ter, and continued the recent trend of larger Brazil to Thailand used equity-linked instru- issues, lower spreads, and longer maturities. ments to raise funds. To cut borrowing costs, emerging-market bor- rowers diversified their sources of funds, tap- ping the eurobond market and the Yankee U FRIGNTIRETINVESTMENT and Samurai sectors, as well as Asia's Dragon AND PRIVATIZATION bond market. At $46 billion, FDI flows to developing countries reached an all-time high in 1992, with China a major beneficiary. In the Repub- lic of Korea, outward direct investment out- Cross-border claims of BIS reporting banks paced FDI inflows as local companies sought (including local foreign currency lending) fell to safeguard market shares and lower produc- by $36.4 billion in the first quarter of 1993. In tion costs. the third quarter, lending to Asian countries, especially Thailand, was strong, but lending to China slowed. SECONDARY MARKETS FOR DEVELOPING- COUNTRY DEBT PAGE 17 * MARKET CREDITWORTHINESS PAGE 10 Developing-country creditworthiness con- Declining yields in US long bonds, as well as tinues to improve on better economic policies prospects of Brady-style debt treatment, and stronger growth prospects, according to boosted prices of developing-country debt. A Institutional Investor. Argentina's long-term new index tracking Latin American eurobond foreign currency debt was rated by Standard performance was launched in the third & Poor's, and Moody's rated the country's quarter. Brady bonds and BONEX. 2 FINANCIAL FLOWS QUARTERLY CONTENTS & SUMMARY OFFICIAL FLOWS: BILATERAL FINANCIAL BRIEF PAGE 23 I AND MULTILATERAL PAGE 19 Emerging stock markets have become more The West Bank and Gaza receive about $2 financially integrated with global markets. billion in commitments for economic devel- Even so, they appear to be inefficient in pric- opment and reconstruction. Cambodia and ing as returns in these markets remain partially Viet Nam clear arrears with the Fund and re- predictable. /f gain access to credit from the IMF, and the World Bank increases funding for environ- ment projects. STATISTICAL APPENDIX * TOTAL EXTERNAL DEBT PAGE 24 M BILATERAL ODA AND EXPORT * AGGREGATE NET LONG-TERM CREDITS PAGE 20 RESOURCE FLOWS PAGE 25 Under its Funds for Development Initiative, U BANK AND TRADE-RELATED Japan seeks to recycle the country's trade sur- NONBANK CLAIMS PAGE 26 plus for development, and EXIMJapan has f COMMERCIAL BANK CLAIMS extended its guarantee to private loans. ON DEVELOPING COUNTRIES PAGE 27 _ COMMERCIAL BANK CLAIMS ON DEVELOPING COUNTRIES, DEBT RELIEF UPDATE BY COUNTRY OF ORIGIN PAGE 28 3 OFFICIAL CREDITORS PAGE 21 * MATURITIES OF BANK CLAIMS ON DEVELOPING COUNTRIES PAGE 32 No new Paris Club rescheduling agreements * FUNDS RAISED ON INTER- were completed in the third quarter. NATIONAL CAPITAL MARKETS PAGE 33 * SECONDARY MARKET DEBT * COMMERCIAL CREDITORS PAGE 21 PRICES PAGE 34 Brazil's creditor banks agreed to a three- U NET FOREIGN DIRECT month extension (to Febr-uarv 28 1994) of the INVESTMENT FLOWS m TO DEVELOPING COUNTRIES PAGE 35 completion date for its restructuring package. South Africa has reached an agreement with U EMERGING STOCK MARKETS PAGE 36 creditor banks on "standstill" debt. The new U COUNTRY GROUPS PAGE 37 arrangement, covering almost eight years, begins onJanuary 1, 1994. I'nttflatboi3ir , fo COMMERCIAL BANK &8eEop;t PROVISIONING AND CAPITAL ADEQUACY PAGE 22 N 151993 US bank profitability remains high on con- tinuing improvement in asset quality and bet- ter productivity. THE WORLD BANK 3 INTERNATIONAL LENDING AND CAPITAL MARKETS GLOBAL BORROWING lar debt. Low long yields also lifted the shares of French franc, sterling, and Swiss franc SLOWED INTERNATIONAL SECAPIT MARKET AC Y bonds. Italian lira issues, too, were up sharply, SLOWED IN THE SECOND QUARTER OF 1993. wt hi aktsaecibn rm13t BOND ISUES WRE WEL DOWN N THE with their market share climbing from 1.3 to 3.8 percent. Deutsche mark bonds, however, RECORD HIGH OF THE FIRST QUARTER. lost ground, with their market share dipping According to the OECD, $189.5 billion was to 6.5 percent because of a temporary easing raised on world capital markets in the second of tensions in the European Exchange Rate quarter of 1993, down 10 percent on the first Mechanism in the second quarter. Yen bonds three months of the year but up 23 percent continued to slip, with their market share on the second quarter of 1992 (table 1). Gross down to 9 percent. bond issues fell by 24 percent on the first Bond maturities shortened slightly in the quarter, to $106.9 billion, but year-on-year second quarter. The average maturity offixed- were 36 percent higher. At around $90 billion, rate eurodollar bonds fell from six years in the fixed-rate bonds accounted for about 87 per- first quarter to 5.4 years. cent of all bond issues. Medium-term note and euro-commercial paper issues were sharply U LENDING REVIVED, THANKS MORE lower in the second quarter. TO SPECIAL FACTORS THAN TO ANY Weak economic activity in major industrial IMPROVEMENT IN UNDERLYING countries depressed demand for new corpo- FUNDAMENTALS. rate finance, but low yields in the bond mar- In the second quarter of 1993, gross new syn- ket and the need to refinance large amounts dicated loans soared to $48.3 billion, up 90 of maturing corporate debt helped to keep percent on the first three months of 1993 and bond offerings buoyant. So, too, did high bor- 36 percent higher than a year ago. The revival rowing requirements of sovereign govemments in bank lending more than doubled the share and record issues from emerging-market bor- of syndicated loans in total financing to 25 rowers. Sovereign borrowing remained strong percent, up from 12 percent in the first quar- in the third quarter: Italy raised $5.5 billion ter. US borrowers accounted for most of the through a two-part global issue. increase, but borrowers in France, Germany, Low US long yields attracted borrowers to Spain, and the UK also helped. Asian borrow- the US dollar sector, which accounted for 39 ers, too, were active. The second quarter also percent of all bond issues (35 percent in the saw use of the Greek drachma and Hungar- first quarter). A flattening of the yield curve ian forint in the syndicated market, which is and a perception that yields had bottomed still dominated by the US dollar sector. encouraged borrowers to raise fixed-rate dol- Behind the surge in syndicated lending was the refinancing of large amounts of maturing INTERNATIONAL CAPITAL MARKET FLOWS debt, mainly by US corporations. This offset (US$ bil on) sluggish demand for funds due to weak glo- Instrument 1989 1990 991 992 993 993 bal economic activity, relatively cheaper alter- Bonds 2537 229.9 297.6 3337 140.0 1069 native sources of funds (bonds), fewer merg- qj lies 8 7.3 23.4 23 5 4.7 8.8 ers and acquisitions, and banks' continuing Synd cated oans 21 124.5 16.0 1 7.9 25.4 48 3 NFarid oher bac< UD faciries 8.4 7.0 77 67 07 36 cautious approach to lending. N 32 ace ocher~~~~~~ ~~~~~~ hc-ieTaes 84 70 7.7 6.7 37 36 ECP andce ocner ioe-ncee- -ten faciltes 73.2 662 80.2 279 406 2 9 Tota 466.5 434.9 524.9 609.7 2 a 89.5 U EQUITY ISSUES IN DEVELOPED STOCK FloesstodevelepngCcoLlnties'Deecent) 5.7 76 9 6.0 7.3 70d MARKETS SOARED. a Note iss..ance ac itec Largely becauseof initialpublicofferings (in- b. Euro-cor merca paper. C. incud gEastercc Eucopeac cousrAres. cluding the $3 billion offeringbyArgentina's d,Est mate. $ feigu±gnia Source: OECOD 7 1cnc cd MAcrkcr T,.. (1n Yacimientos Petroliferos Fiscales), global eq- 4 FINANCIAL FLOWS QUARTERLY INTERNATIONAL LENDING AND CAPITAL MARKETS uity issues climbed in the second quarter. The tries were up about 5 percent, although pat- US S&P Index of 500 stocks showed little terns varied across regions. Cross-border lend- change, as falling US interest rates pushed ing to East and South Asia fell by about 11 investors out of low-yielding money market percent over the previous quarter. Lending instruments into higher-yielding equities. The was selective, concentrated in high-growth Nikkei Index was up 5 percent (in yen terms), economies. Lending to China was down by thankstoofficialsupportandincreasedforeign $570 million to $1.1 billion, and Indonesia investor demand, and the FT 100 Index was also received less bank credit, but Korea more slightly higher. Stock prices in all major indus- than doubled its borrowings to $973 million. trial countries strengthened in the third quarter. Elsewhere, lending to Turkey was higher, at $700 million. DEVELOPING-COUNTRY * IN THE THIRD QUARTER OF 1993, BORROWING DEVELOPING-COUNTRY BORROWERS WERE ACTIVE IN THE BOND MARKETS. THE TREND * DEVELOPING COUNTRIES RAISED $14.7 OF LARGER ISSUES, LOWER SPREADS, AND BILLION IN MEDIUM- AND LONG-TERM DEBT LONGER MATURITIES CONTINUED. IN THE SECOND QUARTER, MOSTLY THROUGH Developing-country borrowers were attracted BOND ISSUES. to international bond markets because of the That $14.7 billion raised by developing coun- low cost of raising funds on these markets. The tries was about the same as was raised in the demand for developing-country bonds contin- first quarter, but 66 percent more than was ued to be fueled by investors seeking high raised a year ago. It lifted developing coun- yields and portfolio diversification. tries' share in international bond and loan After a traditional summer lull, interna- markets to 9.5 percent. Although the share of tional bond issues by developing-country bor- bond financing in total funds raised by devel- rowers regained momentum in September; oping countries fell in the second quarter, it $12.2 billion was raised in the third quarter was still substantial (at 69 percent) and much (table 3). Sovereign borrowing was up sharply, higher than a year ago. For Asian countries, at $4.6 billion, and public sector borrowing which raised $5.5 billion, the share of bond financing was sharply higher, but remained TABLE 2 below that ofbank credit. Of the $6.4 billion INTERNATIONAL BORROWING BY SELECTED DEVELOPING COUNTRIES that went to Latin America, bank credit was JUS$ n) ionn) still less than 10 percent. Mainly because of I 197 43Q 593(0 lower bond financings, borrowings by Central COUnty -htaI Bords TOTn Bosid Tan Bonds Iaot Bores and Eastern Europe were sharply down at Aigeotna 725.0 725.0 13292 529.2 395 0 395.0 275.0 275.0 B,az I 2[[ 1 0 00 oo.o 2 30 20. 82.0 . ,i5b 0 1 5650o $300 million (comparedwith $2 billion in the ch 350.0 2,4 - 332.6 332 6 first quarter). C'i na 2 595 --,,3 o 4,0432 1.2740 20 411.1 8 . 753 o Inf a 150 4 150 4 200.6 Major Latin American borrowers still favor nodcnesa 5,526 5 294I 2,4 .2 611.0 423 7 30 0 238 0 - Korea, Rep. of 6.093.7 2.445 4 5 204.0 3 c 1.6 .057 3 642 3 2.1 2 5 40 0 bond financing. Mexico leads the way, fol- Me azvs 41 20 60. .270.6 - 446".5 - 256.5 - lowed by Brazil (table 2). Asian borrowers Me, co 3 55441 2 29 7 3 273 6 2,923 2. 1b2 2, e2 2 3 363.- Z,?b3.5 Pak star, 99C -o were also busy in the international bond mar- Tra and .842 2 . 4 2, /18 3 646.1 320 6 Z/4 339 8 43 3.b kets, particularly the Republic of Korea and Turse 2.279 5 639.8 4,579.9 2 7`7.1 329 7 074 7 .20b 59.7 Venezuela 58 .3 581.3 1 035.4 830.4 1984 13 0 357,4 3074 China. Bond issues by Central and Eastern Z mhe.e C 700 - 5 o - - - Europe, however, were down, thanks to lower Czech Repjb c' 273.3 278 3 39 5 3 5 575.0 375 0 - - Huangary 378 3 237 8 446 1234 8 1,41, 8 .367.8 278 4 27 4 borrowing by Hungary and the absence of the Dal5nd 4.7 8 7 Czech Republic from the market. tN\ote Beds nc de bot- nternateo-al ,sLes [ n euromarne>er and raditor itorer- sue a Datz before Apri Q-3 t efcr to Czecho. va],,a At $4.5 billion, loans to developing coun- s,, i 6OEDCD. r umnar.L 5st1 .mone hy A,g Is- 1 93 THE WORLD BANK 5 1NTT_RNATIO'NAL LENDING AND CAPiTAL MARKETS was also higher. At $3.7 billion, private bor- TABLE 3 rowingwas about 30 percent lower than in the BOND ISSUES BY TYPE record second quarter. Borrowing by Argen- OF BORROWER, 1993 (US$ mi lions) tina ($1.8 billion) and Venezuela ($1.6 bil- YTDa Q2 Q38 lion) outstripped Mexican issues. Hungarywas All developing countries 32,253 11,392 12,158 also active during the quarter, tapping several Privote 11,424 5,292 3,661 SPREADING THE markets and raising $1.2 billion. Sub-Saharan Africa 0 0 0 East Asia and Pacific 1,968 841 783 NEWS The pace of Chinese bond issues increased, Soutn Asia 75 0 75 Range of launch spreads for with Chinese entities raising almost $1 billion, Europe and Central Asia 300 300 0 some Latin American borrowers ' Latin America 9,081 4,151 2,803 2nd 3rd compared with $250 million in the first quar- M ddle East and North Africa 0 0 0 Quarter Quarter ter. China's recent pattern of financing re- Sovereign 11,223 2,582 4,624 1993 1993 flects a shift toward bond financing and away Sub-Saharan Afr ca 0 0 0 v3m = _~ East Asia and Pacifc 607 0 288 Spreads over US Treasuries in bosis from bank loans. Despite a broadening of its South Asia 0 0 0 points investor base, most of China's funds still come Europe and Central Asia 7,973 2,053 2,828 735 Latin America 2,643 529 1,508 from Asia. Borrowings by Brazilian banks Middle East and North Africa 0 0 0 591 continued at a high level, and these banks ac- Otherpublic 9,607 3,517 3,873 1 counted for about 80 percent of the country's Sub-Saharan Africa 0 0 0 I East Asia and Pacific 4,234 1.472 1,464 international bond issues. Most is for relending South Asia 0 0 0 40in domestic markets at higher rates. Europe and Central Asia 524 63 461 Bndorrowing termets cnthinuer rato s. impLatin Arnerica 4,849 1,983 1,948 282 Borrowing terms continue to improve for Middle East and North Africa 0 0 0 developing countries. Launch spreads on a.AsofSeptember27, 1993. Brazilian eurodollar issues, for instance, have Source: Euromoney Bondware and World Bank staffestimaes. tightened by about 170 basis points since the ers surveyed, and 75 percent regarded Mexico 70 a675 beginning of the year, and those on Argentine as the most attractive emerging market. Asia and Venezuelan issues have fallen by 140bp also offered investment opportunities (93 and 150bp, respectively. Spreads on Mexican percent), but Eastern Europe was unattractive I issues have also fallen, but by a smaller (45 percent). So, too, was the Middle East. - amount. Maturities on developing-country 335 issues have lengthened, with some borrowers DIVERGING-MAR BORROWERS 208 issuing five-year and seven-year paper. Aver- DICERSIFY THEISOFU ND 208 . * * ~~~~~~~~~~MEXICO RETURNS TO THE SAMURAI AND age issue size rose to about $160 million in the third quarter, compared with $110million in EUROSTERLING MARKETS. CHINA TAPS THE EUROYEN MARKET. HUNGARY ENTERS THE the second quarter. The third quarter saw some big issues-$1 billion from Venezuela's 4i5 US-based PDV and DM1 billion issues from Widening its investorbase, Mexico tapped the L l both Argentina and Hungary. Japanese public bond market in July with a A survey by Broadgate Consultants shows three-year Y10 billion ($91.23 million) issue. 175 210 that emerging markets have gained favor with The United Mexican States' return to the US investors, with almost 90 percent of respon- Samurai sector for the first time since 1977 was dents viewing such markets as more important followed by a three-year Y10 billion issue by 470 to their global investment strategy now than the Mexican development bank, Nafinsa (in they were two years ago. The attraction of early October). Five other Samurai issues from 295 marketsvaries according to exchange rate risk developing-country borrowers raised Y165 and such factors as the quality of corporate billion in the third quarter, as the continuing 185 management, the rigor of disclosure require- rally in Japanese bonds lowered borrowing ments, and political stability. Latin America costs. These included the first Samurai issue Noter Bed ol, -eso~mv.op5s offered the best investment opportunities to by the Czech Republic-the Czech National Source: Euromoney Bord-are nnd WoHd Baadsvto c roughly 73 percent of the investment manag- Bank's Y35 billion seven-year issue-and the FINANCIAL FLOWS QUARTERLY iNTEPNA'TIONAL LENDING AND CAPITAL MARKETS National Bank of Hungary's Y50 billion bond. sources, traditionally the Asian markets. China Latin borrowers tapped the eurosterling International Trust and Investment Corpora- market for the first time in two years. They tion, which has previously borrowed in the wanted to diversify funding sources but also Samurai sector and the euromarkets, tapped to lower costs through the sterling market, theUSpublic market. Its 10-year$250 million which has had few high-spread issues. The gov- Yankee issue is guaranteed by the Republic ernment-owned Mexican foreign trade and and was priced at 100bp over comparable US development bank, Bancomext, issued a Treasuries. The issue was reportedly increased seven-year £75 million eurobond at a launch from a planned $150 million. spread of 200bp over the comparable Gilt. Low costs and long maturities attract bor- Pemex, the Mexican national oil company, rowers to the US public market. An Indone- followed Bancomext's debut, with a 10-year sian pulp and rayon producer, Indorayon, £75 million bond also at 200bp over Gilts. De- offered a $100 million seven-year Yankee (the mand for both issues was mostly from UK and first from the country) in early October. The European investors. issue, which had a BB rating from Standard & The National Bank of Hungary, which has Poor's and Duff and Phelps, was priced at borrowed in several markets and currencies 425bp over comparable US Treasuries. The in the past (including Deutsche mark, Japa- deal size was increased from $75 million, nese yen, and US dollar), made its debut in thanks to strong demand. The Kingdom of the eurosterling market with a 10-year £100 Thailand issued from an MTN facility in the million issue at a spread of 260bp over com- Yankee market $53.6 million in three-year parable Gilts. Demand came from investors in notes, $50 million in five-year notes, $50 mil- the UK, continental Europe, and Asia. lion in 10-year notes, and $40 million in 20- After a six-year hiatus, China returned to year notes, at spreads of 55, 75, 85, and 85bp the eurobond market in September with a five- over comparable US Treasuries. year Y30 billion issue to finance infrastructure projects. The issue was priced to yield 89bp ACDEVELING-COUTRH BORROERW over Japanese government bonds and sets a benchmark for other Chinese borrowers. An The decline in longer-dated DM bond yields estimated 70 percent of the issue was placed attracted developing-country borrowers to the with East Asian investors, the rest with Euro- DM sector, where DM2.6 billion was raised. pean investors. An upgrading by Moody's of There were two big issues. The Republic ofAr- China'sratingfromBaal toA3helpedtighten gentina returned to the euro-DM bond mar- the secondary market yield on the issue. ket (after 14 years) with a five-year DM1 bil- Elsewhere, Pemex launched a five-year lion issue ata launch spread of 250bp over the F750 million issue, its second French franc comparable German government bond. Hun- issue.ThepaperwasplacedinEurope.Athird gary issued a 10-year DM1 billion bond at a went to France, mainly to institutional inves- spread of 230bp, much lower than the 300bp tors. The National Bank of Hungary launched spread on an issue of equal size launched in a seven-year 1 billion Austrian schilling issue the first quarter. with a 8.5 percent coupon, reportedly targeted to retail investors. S CHINA ENTERS THE DRAGON BOND MARKET FOR THE FIRST TIME. v AsIAN BORROWERS TURN TO THE YANKEE China launched a ground-breaking offering MARKET, WITH ISSUES FROM CHINA, on the two-year-old Dragon bond market in INDONESIA, AND THAI LAND. early October. Asia's nascent regional capital As China shifts toward financing in bond market was established by the Asian Develop- markets, it is beginning to widen its funding ment Bank. It is still relatively small, with short- Th-E fG& uSF;_L F N'; 17NTRNNA,TIODNAL LENDING AND CAPITAL MARKETS U THERE ARE TWO MORE ISSUES FROM THE dated issues and low secondary market liquid- PH ES, AND INI RETURS TO THE ity; the estimated value of outstanding issues is $3 billion. Issuers in this market (from Eu- EUROBOND MARKET. rope,Japan, and the US) have been top-rated, Investor demand for Philippine issues remains broadening their investor base in the fast- strong on account of the attractive spreads and growing economies of Asia. China's $300 mil- relatively small supply of these bonds. The lion 10-year issue established several firsts. It third quarter saw two new issues by Philippine was the first sovereign issue in this market and entities. Philippines Airlines tapped the inter- the first with a maturity of 10 years. With a national markets with a three-year $100 mil- Moody's rating of A3, it was also the lowest lion issue, and the Philippine National Oil investment grade in this market. Company issued a five-year $90 million bond (increased from $60 million). Launch spreads il! THE FIRST EURO-MEXICAN PESO SECURITY. were 375bp and 265bp over US Treasuries. Injuly, Banco Nacional de Mexico (Banamex) India returned to the eurobond market issued the first euro-peso securities, diversify- after about two years with the first euro- ing the company's funding sources while pro- convertible bond. Essar Gujarat's five-year $65 viding foreign investors with an alternative to million convertible was increased from $60 thegovernment'sCertificadosdelaTesorieria million. A $10 million green shoe option de la Federacion (CETES) and medium-term (which permits additional offering on strong securities. The 1 billion peso ($320.5 million) demand) was exercised, bringing the total is- medium-term note program had four sue to $75 million. The bond has put and call tranches. The yield on three short-term notes options and was priced to yield 110bp over was 50bp over CETES; the two-year notes had comparable US Treasuries. a yield of 14.75 percent. This MTN program was permitted at a time when the supply of 1 ARGENTINA ESTABLISHES A LONGER YIELD CETES, which are popular with foreign inves- CURVE. tors because of their short maturity and liq- The Republic ofArgentina issued a seven-year uid secondary market, had fallen because of $100 million euronote, establishing a longer Mexico's lower public sector borrowing needs. yield curve for Argentine issues. The issue was Foreigners now account for more than 60 part of a two-tranche $250 million offering percent (about $20 billion) of the total gov- under a $1 billion euro-MTN program, the ernment bond market and an estimated 70 first to be set up by a Latin American sover- percent of the CETES outstanding. eign. The seven-year notes were priced at 286bp over comparable US Treasuries, and a * GUATEMALA JOINS THE RANKS three-year $150 million note came in at a OF EMERGING-MARKET ISSUERS. spread of 255bp over Treasuries. While the The first eurobond issue by a Guatemalan three-yearbondwasuidelydistributedamong entity was launched in August. Asociacion different types of European investors, the Nacional del Cafe, a nonprofit outfit set up to seven-year issue was placed largely with US help the domestic coffee sector, offered a five- institutions. The Republic's benchmark offer- year $60 million issue at 605bp over compa- ing was followed by another seven-year issue rable US Treasuries. The bond is guaranteed out of Argentina. In early October, Telecom by the Guatemalan government and is par- Argentina launched a jumbo $500 million tially collateralized by a trust of proceeds from bond. The issue was priced at 348bp over com- local coffee producers and the government. parable US Treasuries, higher than the spread The oversubscribed issue was placed locally on the Republic's seven-year issue.Areported (20 percent) and in Mexico (20-25 percent), 60 percent was placed with US investors and with the rest going to the US and Europe. 25 percent with Asian investors. FINANCIAL FLOWS QUARTERLY INTERNATIONAL LENDING AND CAPITAL MARKETS U VENEZUELA'S PDVSA LOWERS FUNDING decline than in the last quarter of 1992. Net COSTS BY BORROWING THROUGH ITS US international bank credit (or new lending), SUBSIDIARY, AND BRAZILIAN ENTITIES LOOK adjusted for redeposits, actually rose by $35 TO LOWER BORROWING COSTS. billion, more than twice the previous quarter's In July, PDV America, a US subsidiary of the increase. Venezuelan national oil company (PDVSA), International claims of German and issued $1 billion in bonds in the US public French banks (not adjusted for exchange rate market and on-lent the proceeds to PDVSA. changes) rose by 5 percent and 2 percent, The multi-tranche issue comprised $500 mil- respectively. US banks' claims were also mar- lion in 10-year notes, $250 million in seven- ginally higher. By contrast, Japanese banks' year notes, and $250 million in five-year notes. claims were $17.5 billion lower (a 1 percent The 10-year and five-year notes were priced at fall); adjusted for exchange rate changes, the the same spread, 210bp over comparable US decline was estimated at 3 percent. This fol- Treasuries. Guaranteed by PDVSA and its lows a 20 percent fall in 1991-92. Netherlands-based foreign holding company, Propernyn, the notes received an investment grade of Baa3 (above the sovereign ceiling for COUNTRIES STAGNATED IN THE FIRST Venezuela) from Moody's and BBB-from Duff QUARTER, HALTING A RECENT and Phelps. The paper was placed mostly in EXPANSIONARY TREND. the US (75 percent), with the rest going to Adjusted for exchange rate changes, BIS Europe (15 percent) and Asia (10 percent). banks' outstanding claims on non-OPEC de- Brazilian corporations, which account for veloping countries, OPEC, and Eastern only a modest share of the country's issues, are Europe and the former Soviet Union were seeking to reduce funding costs through the down by $0.4 billion in the first quarter of use of convertible eurobonds and eurobonds 1993, compared with a $10.6 billion increase with detachable warrants. In August, Bombril in the previous quarter. Claims on non-OPEC issued $93 million in five-year Series A notes developing countries fell by $0.5 billion, after with five-year warrants attached. Investors' rising by $5.6 billion in the fourth quarter of demand for Brazilian paper seems to be fu- 1992. Claims on Eastern Europe continued to eled by its large spread over low US Treasury shrink, falling by $1 billion, compared with a yields. Investors typicallyhold Brazilian paper decline of $1.2 billion in the fourth quarter no more than five years, however, and, more of 1992. By contrast, BIS banks' claims on commonly, only three years. The government OPEC rose by $1.1 billion, a much smaller has tightened regulations on borrowers, which increase than the $5.6 billion rise registered could encourage issueswith longer maturities, in the fourth quarter of 1992. but with short-dated puts. Lending to Asia's major developing coun- tries slowed in the first quarter of 1993. New lending to China was lower; claims fell by $4 COMM ERC IAL BANK CLAI MS billion, comparedwith a$4.5 billion rise in the previous quarter. Claims on India fell by $0.6 billion in the first quarter of 1993, after rising BORDER CLAIMS CONTI NUED TO FALL, by an almost equivalent amount in the fourth THANKS To A DECLINE IN INTERBANK quarter of 1992. Lending to Malaysia in- BUSINESS AND A SLOWDOWN IN LENDING IN creased, and claims were up by $1.2 billion, NON-EUROPEAN REPORTING CENTERS. compared with a fall of $0.6 billion in the pre- Cross-border and local foreign currency vious quarter. claims of BIS reporting banks fell by $36.4 Lending to non-OPEC Latin American billion in the first quarter of 1993, a sharper countries was lower. Large trade financing ar- THE WORLD BANK 9 INTERNATIONAL LENDING AND CAPITAL MARKETS rangements continued to push up claims on China, which has been a major borrower, Brazil and Chile. Claims on Mexico also rose saw some slowdown in bank borrowing, re- (by $0.7 billion), almost offsetting the previ- flecting a shift in favor of bond financing. ous quarter's decline. But Argentina saw a Nevertheless, it was still the second largest decline of $0.7 billion in the wake of its debt developing-country borrower in the region. reduction agreement with creditor banks. Other big Asian borrowers were India, Indo- Among OPEC countries, lending was selec- nesia, and Malaysia. tive, with claims on Algeria, Indonesia, and In August, the Republic of Slovenia had a Saudi Arabia rising and those on Nigeria and debut $100 million dual-currency loan. The Venezuela falling. Eastern Europe saw a de- syndicated offering was heavily oversub- cline in claims for the second consecutive scribed, especially by European banks, but the quarter, with claims on the former Soviet Republic reportedly decided against increas- Union contracting a further $0.8 billion. ing the size of the loan. The loan, which will Claims on African countries were also lower. support the country's balance of payments, There was a massive withdrawal of funds can be drawn in US dollars and Deutsche from BIS reporting banks by both non-OPEC marks. It was priced at 2 3/8 percentage points developing countries and OPEC countries. over LIBOR. Elsewhere, lending to African Deposits of Chinese residents alone fell by $6.9 and Middle Eastern countries was also higher, billion due to an unwinding of short-term but Latin America saw a decline. Loans to positions, and Malaysian residents drew down Turkey were half those in the second quarter. another $3.9 billion. Deposits from OPEC resi- dents were sharply lower, by $7.6 billion, be- cause of weak earnings from oil exports and MARKET CREDITWORTHINESS budgetary requirements. Deposits from the U INSTITUTIONAL INVESTOR REPORTS A former Soviet republics rose by a further $1.5 CONTINUING IMPROVEMENT IN DEVELOPING- billion, well below the increases of the previ- COUNTRY CR EDITWORTHINESS, AND ous two quarters. EUROMONEY ALSO REPORTS A * IN THE THIRD QUARTER OF 1993, BANK STRENGTHENING OF COUNTRY RISK IN LENDING TO DEVELOPING COUNTRIES WAS SEVERAL DEVELOPING COUNTRIES. HIGHER. LENDING TO ASIAN COUNTRIES, Better economic policies and stronger ESPECIALLY THAILAND, WAS STRONG; medium-term growth prospects have im- LENDING TO CHINA SLOWED; AND THERE proved developing-country credit ratings. Insti- WAS A DEBUT LOAN FOR THE REPUBLIC OF tutional Investor's survey of sovereign credit- SLOVENIA. worthiness shows an improvement over the Thanks to strong foreign investor interest in past six months and over the past year, apart leading Thai corporations, Thailand was the from Eastern Europe, where major changes biggest developing-country borrower. Loans were taking place. For most regions, however, included one of the world's biggest refinery the improvement was small. Euromoney's financings, as well as the largest nonrecourse survey shows big improvements in the coun- financing facility in the region. A $1.5 billion try risk rankings of some developing countries. project financing for Rayong Refinery (ajoint In Latin America, Institutional Investor venture between Shell and the Petroleum reports a further strengthening of credit rat- Authority of Thailand) was signed in mid- ings, as market-oriented reforms improve September. It comprises a commercial facil- performance and prospects. The region's ity of $1.1 billion, a US Exim export credit loan credit rating (on a scale of 0 to 100) climbed of $375 million, and a revolving credit facility 0.4 point to 24.4, a 1 0-year high. Chile led the equivalent to $25 million in local currency. way, with an increase of 2.6 points, followed I () FINANCIAL FLOWS QUARTERLY INTERNATIONAL LENDING AND CAPITAL MARKETS by Argentina (up 2.1 points) and Costa Rica cluding newcomer Georgia), with the Repub- (up 2 points). Among the 24 countries in the lic of Slovenia showing the largest incrcase region, only Venezuela saw a significant de- (6.1 points). Others with a significant improve- cline, falling by 1 point. Euromoney reports a ment were the Czech Republic (up 2 points), substantial improvement in Peru's country Kazakhstan (up 1.8 points, thanks to better risk ranking on strong economic performance prospects based on its rich natural resources), and investors' perception of lower risk. and Poland (up 1.7 points, because of com- Continuing recent trends, African coun- mitment to economic reforms). Hungary's tries gained in creditworthiness. Institutional credit rating continued to improve. Among Investor's regional average rating rose by 0.4 the significant declines were Russia (down by point to 20.9 (excluding four newcomers). Of 1.2 points), due to continuing economic and 29 countries, 11 showed a significant increase political difficulties. Euromoney reports simi- and seven a significant decline. The biggest lar trends. TABLE 4 improvements were for Botswana (up 3.6 SOVEREIGN FOREIGN points), closely followed by Mauritius (2.6 CURRENCY DEBT points), Swaziland (2.3 points), and Ghana FROM STANDARD & POOR'S, AND MOODY'S (Lcrgotcirrratng 0ct 6.093) (1.8 points). ail of these gains reflect reform RATES THE COUNTRY'S BONEX AND BRADY Mojdvs S&P eff8pornts).and improved economic plectreformac BONDS. MOODY'S ALSO UPGRADES CHINA 7 JC efforts and Improved economicperformance AND RATES COLOMBIA, AND THE CZECH Cr le N/A BBB/ and prospects. Better prospects for Tunisia AND RATE D AND ARD & AAB and Morocco also pushed up their ratings- NATIONAL BANK IS RATED BY STANDARD & China AD rE,- POOR'S. Coorribid. B31 BBB by 1.5 and 1.2 points, respectively. Kenya saw oCze-JF Rcp 3 BBB- the biggest fall (1.7 points). South Africa was Argentina's long-term foreign currency debt ful YPF offering at end-June, and better-than- cent on speculative trading of second-tier expected corporate profits in the second stocks and index-linked trading oflarger issues IE' FINANCIAL FLOWS QUARTERLY EQUITY PORTFOLIO AND FOREIGN DIRECT INVESTMENT (blue chip stocks). Robust growth, lower in- cent of trading activity. In Eastern Europe, the flation, an improving trade balance due to Warsaw index gained 50 percent in August Quarter rapid export growth, and proposed infrastruc- and reached a record high in early Septem- 1993 ture investment by the government have all ber before falling on election-related con- helped make the Malaysian stock market more cerns. Although the market is still thin, trad- Percentage change attractive. Despite its large market capitaliza- ing volume has risen and was at an all-time Since one Since last year ago quarter tion ($142 billion at end-August), however, high of 2.2 trillion zloty in August. The gov- +47.3 +22.0 tradingvolumesare low ($9 billion inAugust). ernment hopes to privatize some companies Elsewhere in Asia, Indian shares also saw by listing shares on the stock exchange. Price- strong gains as investors, including foreign earnings ratios have climbed from about 2.5 institutions (which invested more than $450 to almost 19 in the first nine months of 1993. million in July and early August), anticipate political stability and continuing economic lib- AN eralization. The Indonesian market continued INDEX. its impressive showing, and monthly trading The Latin Finance 100 Equity Index provides volumes rose to almost $770 million in August investors with a benchmark for the perfor- from $440 million in May. Foreign buying is mance of emerging stock markets in the re- high. The market saw a high level of fund- gion. It tracks 100 stocks in seven countries. raising through new shares, including IPOS. This compares with the IFC's Latin American Share prices in the Philippines and Thailand index, which has 263 stocks from seven coun- were also much higher, and the IFC's Sri tries, and the IFC's investable index for the Lanka price index rose 19.6 percent. Korea, region, with 155 stocks from the same coun- however, saw stock prices fall because of poor tries (but only those available to foreigners corporate earnings and the government's and with a minimum traded value of $10 mil- requirement that all beneficial interests be dis- closed in financial transactions. CHART 2 8 r The slide in China's B share prices was re- EMERGING STOCK MARKETS versed in August, with the Shanghai market Percentage change Since one Since last Quarter year ago quarter 1 993 up 31 percent and the Shenzhen market 17 percent higher. Investor confidence increased because of a move toward timely disclosure of +63.7 _ +24.9 + .9 + 38.0 company financial results, an easing of con- cerns about the government's austerity mea- l + 15.4 sures, and news on planned ADR listings. The + 14.8 -26.6 upturn in B shares continued in September, albeit at a slower pace. In the third quarter, the Shanghai B share market was 26 percent higher and Shenzhen's 10 percent up. +37.8 +33.2 Europe and the Middle East also saw big + 7.0 +19.9 gains. In Turkey, where shares rose by 28.2 4 +9.6 percent, investor interest was strong in antici- pation of the government's privatization pro- gram. Prices rose 23.1 percent in September 3 - alone. The government's recent efforts to +126 develop the domestic stock market have in- +26.9 -14.1 creased the presence of institutional investors +104 +28.2 -32.3 in this market. From negligible shares, these No investors now reportedly account for 50 per- THE WORLD BANK EQUITY F'ORTFOLIO AND FOREIGN DIRECT INVESTMENT lion a year). Companies with large capitaliza- in the securities business. Elsewhere, the IFC tions but tightly held shares are excluded. is assisting Zambia in setting up an official Mexican companies comprise 53.4 percent of stock exchange, which would also help pri- the index, Brazilian 22.6 percent, Argentine vatizations through the listing of shares. 11.5 percent, Chilean 9.3 percent, Peruvian In August, Brazil's central bank introduced 1.1 percent, Venezuelan 1.1 percent, and Co- measures to liberalize trading on the Sao lombian 1 percent. The weights are recalcu- Paulo futures and options exchange. Under lated each quarter. Telecommunications, the new rules, domestic institutions can trade electric utilities, and financial groups domi- on the exchange among themselves and with nate the index. foreign investors without approval from the central bank. A gold futures contract is ex- pected to be launched. Institutions are al- EXPECTED TO BOOST DEVELOPMENT OF THE lowed access to international exchanges for DOMESTIC CAPITAL MARKETS, AND INDIA IS hedging and arbitrage, although there are EYEING STOCK MARKET REFORMS. limits on total foreign exchange positions. The long-awaited reform of the state pension scheme was approved byArgentine legislators in September. Now private pension schemes NEW EQUITIES, QUASI- will be allowed to compete with the state sys- EQUITIES, AND DERIVATIVES tem for pension funds, and up to 50 percent .. U DEVELOPING-COUNTRY CORPORATIONS of pension funds can be invested in equities and government securities. With the pension funds forecast to receive flows estimated at MARKETS IN THE THIRD QUARTER. more than $150 million a month, the potential Investor demand for developing-country infusion of capital into the local securities equities was strong, thanks to the recent large markets is large, and the reform is expected increases in these countries' stock markets and to boost the development of these markets. At the markets' favorable economic prospects. end-August, Argentina's Comision Nacional Several Asian corporations floated shares in Valores (CNV) also approved a new regulation international markets, although issue size was creating a special fund for asset securitization typically small. Corporations in China were ac- (repackaging loans into new bonds). The first tive, with several international equity issues in securitizations are expected to be auto and the quarter. China Tire Holdings raised $104 credit card loans. million with a listing on the NYSE, and Shang- To improve liquidity in India's stock mar- hai Petrochemical raised $343 million kets, the Stock Exchange Board of India through a global IPO. Stone Electronic Tech- (SEBI) is considering introducing market- nology became the first private Chinese com- makers on the larger exchanges. (At present, pany to issue an IPO on the Hong Kong Stock they are allowed only in the over-the-counter Exchange, raising HK$189 million. Guang- market.) The SEBI is also likely to change the dong Corporation was the first Chinese com- present system of fixing prices on IPOs about pany to list on the Australian stock market, four months in advance of actual issue. selling 9.6 million shares for $4.9 million. Instead, a price range will be allowed for the Elsewhere in Asia, India's Southern Petro- IPO, providing more flexibility in reacting to chemical Industries Corporation raised $67 changing market conditions. million through the sale of global depository In early September, China's first securities receipts. As in recent offerings, the stock was regulations were announced. The new rules at a big discount from the domestic market cover new issues and securities trading, as well price. Indonesia's Pacific Barito had a success- as arbitration practices and general conduct ful offering, raising $300 million-$50 million 14 FINANCIAL FLOWS QUARTERLY EQUITY PORTFOLIO AND FOREIGN DIRECT INVESTMENT through international placement. A Philip- in Chinese companies listed on local or for- TABLE 5 pine company, FilinvestDevelopmentCorpo- eign exchanges. CITC Frontier Fund Plc, a TURKISH FUNDS STRONG ration, had an IPO with an international place- Korea fund, will invest $50 million in Korean FC)c,lop rl, ecuntro, ment of 234 million shares at 5.25 pesos per securities-$30 million in a Korea stock index C1? 1utios PetLire or share. portfolio and $20 million in fixed-income to fund' There were some equity issues from Latin securities and convertibles. The fund is offer- Turke/ 22c.H American corporations, mostly Mexican. For ing stocks with three-year warrants, as well as a R o 6 I 399 instance, Mexico's Grupo Tribasa raised $264 $41 million of floating rate notes at 50bp over - 338 mocriesa ( 2' 339~ Cola Femsa, raised $168 million through an Templeton Emerging Markets Income Fund otr, Arwrrr 7I 2 87 IPO in Mexico and ADRs. will invest in developing-country debt securi- Ernei2 r oLal (_i) 2.32 Cr ira [,8) 242 ties, whether sovereign, public, or private. Clrle) e 48 U SEVERAL NEW COUNTRY FUNDS ARE Talard (13) .80 LAUNCHED. U BORROWERS FROM BRAZIL TO THAILAND Ererirg Er-oDe(5) -0976 USE EQUITY-LINKED ISTRUMENTS TO RAISE Aurt /Hur,pry (4i -i 68 A fund investing in equity securities of Egypt, USE EQUITY-LINKED INSTRUMENTS TO RAISE )O9 0) -2.3 CAPITAL. THE THIRD QUARTER SAW SOME -4xio ! 85 Jordan, Morocco, Pakistan, Tunisia, and Tur- FIRSTS-EUROBONDS WITH EQUITY Nt, - urcs[K parerl esers are keywas established in August. The $20 million riur-ber 'o' -ds . - rategcr, regional ~~~~~WARRANTS FROM BRAZIL, AND a For Septrmber 993. Near Eastern Fund is the first regional fund WoRRrc L ppAr ANterDr; ora C So nr- covering these countries. The IFC has agreed EUROCONVERTIBLES OUT OF INDIA. :ndFundsSrvce to provide $5 million in equity investment, and Corporations seek to lower funding costs the fund will be managed by Fiduciary Trust through equity-linked financing. Bombril, a Company International. household cleaning products manufacturer, The recent boom in the Indian stock mar- issued a five-year $93 million eurobond with ket (up 24.9 percent in the quarter) has at- detachable equity warrants, the first by a Bra- tracted interest from foreign institutional zilian company. Indian corporations returned investors. Several off-shore India funds have to the international capital markets, seeking been launched. Among these, Foreign and to benefit from the recent revival in the stock Colonial Emerging Markets launched an market and strong investor demand for Indian open-end fund investing in stocks of mid-size shares. Essar Gujarat offered the country's first companies. The fund aims to take advantage euro-convertible. Hindalco (an aluminum of the perceived undervaluation of such com- producer) was the first Indian company to TABLE 6 COUNTRY FUNDS: panies relative to higher-cap, blue chip com- offer shares with warrants attached-almost PREMIUMS AND panies. The Indico Fund will be the first open- 4.5 million units for $72 million. DISCOUNTS I Vrce-tilee d tfer once Detwcen net end fund to be managed wholly offshore, now Several convertible bond issues were of- amseta r id alne pr ae) permittedunder the government's recentlib- fered by Thai corporations, also seeking to L17STe.t eralization of foreign investment rules. The lower costs and to benefit from the strong lo- Korea Fu-d 26.42 fund will also have a private sector advisor cal stock market and favorable economic pros- len P Caci-c t- 28.97 rather than the traditional Indian public sec- pects. Thai corporations offered five euro- Kcrea rcesament Func 5 65 tor bank. convertibles, raising a total of $383 million. Argentna F-red 5.29 Lar-y dtarruras Two China funds are planned, and a Ko- Investor demand for the issues, which were by ear, o I.nmr Aunarn rlhn Iestnne- Cc -28.57 rea fund is offering investors three investment finance houses, chemical firms, and property -ve Arrowrs Ch e F8nd -28 21 instruments. One of the China funds is hop- companies, was reportedly strong. Elsewhere Genes s Crile Fur d -25 96 A35SJA, F,)lO -22 03 ing to attractA$80 million, mostly from inves- in Asia, there was a $150 million US-dollar- CT Cr le Grom,sth -24.45 tors in Australia and New Zealand, and will be denominated euro-convertible issue by a Ko- ate: As of SeDoember 30, 993. Souroa Lpper1riternat oraiCbosed- listed in these markets. The fund will invest rean company, Ssangyong Oil (the country's Err Fuds Servce THE WORLD BANK 15 EQUITY PORTFOLIO AND FOREIGN DIRECT INVESTMENT third largest oil refiner). The 15-year issue has FDI AND PR IVATIZATION a put at eight years, compared with the usual - *~~ FDI FLOWS TO DEVELOPING COUNTRIES five-year put. It is the first Korean euro with such a long-dated put, which allows investors HIT A NEW HIGH. ASIA BENEFITS MOST. to convert into nonvoting shares. The issue Despite a fall in global FDI, flows to develop- was oversubscribed. ing countries reached an all-time high of $46 billion in 1992, roughly a third of global flows. Asia is the main beneficiary, reflecting sizable SEE STRONG GROWTH, AND THERE ARE FDIflowstoChina ($11 billion).Therebound WARRANTS ON BRAZIL'S C-BONDS. of FDI in Latin America and the Caribbean Mexican equity derivatives offered over-the- continued, but flows into Sub-Saharan Africa counter (OTC) by US banks and exchanges, fell. High growth rates and booming local as well as in the local market, have grown as markets have attracted FDI to many develop- investors seek to reduce the risk of holding eq- ing countries. Privatization programs have uities and to improve liquidity cheaply. The also acted as a magnet, especially in Latin OTC has seen rapid growth of Mexican equity options. The Chicago Board of Trade, which CHART 3 lists options on Telmex ADRs, is looking to FDI, 1992 offer options on the ADRs of Empresa ICA, uS$ miOlions Asia 2,2 Transportacion Maritima Mexicana, and Vitro. The exchange is also seeking to list Latin America/Caribbean 14,30 options on Brazilian and Chilean ADRs. Since Eurape/Central Asia 7,374 March, the Bolsa Mexicana de Valores has Middle East/North Africa 1,601 seen the issue of about 10 equity warrants, and Sub-Saharan Africa 1,412 the Comision Nacional de Valores' s reform of Source: WVhd Bank staff estimotes. securities law in 1992 is expected to facilitate the development of futures and options. America and Eastern Europe. China contin- Swiss Bank Corporation offered warrants ues to attract vast amounts of investment, and on a basket of Malaysian stocks. The warrants FDI in the first six months of 1993 was reported provide investors with exposure to the under- at $9.4 billion (up 180 percent over the same lying Malaysian stock market, which has shown period in 1992). Most is going into services- strong price performance. The one-year op- mainly finance and insurance. tions are European style. East European Investment magazine puts Warrants on Brazil's C-bonds, which are in foreign investment commitments in Central the menu of selections presented to the and Eastern Europe at $42 billion in the 18 country's creditor banks under the country's months ending March 1993. Russia has re- Multi-Year Deposit Facility Agreement, were ceived the largest share (25 percent). Many offered by Chase Manhattan International. commitments are for large-scale energy and Each one-year European-style warrant relates transport projects. With commitments of to $250,000 face value of Brazilian C-bonds. $13.6billion, US-based corporationswere the The uncollateralized C-bonds have a 20-year leading source of investment. maturity and pay an average annual return of 8 percent. As a hedge against volatility ofVen- U OUTWA IRECN ezuelan debt prices, Salomon Brothers issued 1,200 call warrants on Venezuelan Brady Since 1990, Korea has been a net outward bonds (par bonds). Each European-style war- investor, although in 1992 that was a reflec- rant relates to $250,000 in par bonds. The tion of the big fall in FDI inflows. Compared exercise date is in March 1995. with other developing countries in Asia, whose 16 FINANCIAL FLOWS QUARTERLY EQUITY PORTFOLIO AND FOREIGN DIRECT INVESTMENT investments are concentrated in the region are supporting a country fund to invest in (Thailand, for instance), FDI from Korea is privatizations of Russian state assets, the ex- highly diversified. About half goes to indus- pansion of existing companies, and new com- trial countries in North America and Europe, panies. The Russian government is planning with large Korean firms investing to safeguard to provide $25 million, and OPIC has agreed market shares and gain access to technology. to another $50 million in loan guarantees. The Most of the rest goes into neighboring coun- Russia Country Fund is hoping to attract funds tries, specifically small and mid-size firms in- from US private investors, including pension CHART 4 vesting in labor-intensive industries. funds. In the first official sale of oil companies, us$ millions For all developing countries, FDI oufflows a small stake (8.3 percent) of Komineft has 1987-89 were about $6.3 billion in 1992. Three coun- been offered to investors. Also in Russia, the 2,230 tries (Brazil, China, and Korea) accounted for firstwholly foreign-owned bank since 1917 was 90 percent of the total. For China, however, established in St. Petersburg. 1990-92 the figures may be distorted by "round- Elsewhere in Central and Eastern Europe, 2,385 tripping," in which Chinese investment capi- the Czech Republic is offering shares in about tal flows to Hong Kong and reenters China 770 companies in the second and final phase Inflows Outflows routed through foreign enterprises to qualify of mass privatization. Although privatization Source: MF dato. for fiscal benefits given to foreigners. The sales are progressing slowly in Poland, state- funds involved in roundtripping may be as owned companies are restructuring along high as $3 billion, suggesting that the oufflow more efficient lines. Kazakhstan auctioned would be around $1 billion. several shops in the first stage of its pri- vatization program, and BK Gold, operating * A NEW COUNTRY FUND WILL HELP.. . a gold mining joint venture with the Kazakhstan government, raised £8.2 million The US Overseas Private Investment Corpo- through an international offering to finance ration (OPIC) and the Russian government mining operations. SECONDARY MARKETS FOR DEVELOPING-COUNTRY DEBT * SECONDARY MARKET PRICES FOR... of prices on opposition to NAFTA in the US. DEVELOPING-COUNTRY DEBT ROSE IN THE Overall, secondary market prices climbed an T HIRD qUARTER, THANKS TO DECLINING Iaverage 6.5 percent in the third quarter. YIELDS IN US LONG BONDS. PROSPECTS OF Argentine par bonds rallied above 60 BRADY-STYLE DEBT TREATMENT ALSO cents, for a gain of 16 percent in the third FUELED PRICES. quarter, thanks to favorable domestic devel- Declining yields in US long bonds fueled opments, including progress on pension investor interest in high-yielding developing- reform and successful issues of long-dated country debt. Moreover, investors' anticipa- bonds in international markets. Brazil's debt tion of Brady-style debt reduction operations (IDUs) also rose in the third quarter, despite in several countries, including the Dominican delay in the conclusion of a commercial bank Republic, Jordan, and Peru, led to sharply debt restructuring agreement and economic higher prices for these countries' debt. As in difficulties. A rule adopted in mid-August that the past, sentiment over passage of the North restricts foreigners from investing in Brazilian American Free Trade Agreement (NAFTA) capital markets (fixed-income local currency also influenced prices, especially of Mexican securities and commodity funds) increased debt. The signing of trilateral accords on the attractiveness of the country's IDUs. Ven- NAFTA strengthened Mexican par prices in ezuelan DCBs were slightly higher on uneven August, but September saw some weakening political news. Despite political difficulties, THE WORLD BANK SEC J`NDARY MARKETS FOR DEVELOPING-COUNTRY DEBT CHART 5 large gains as prices moved up from about 35 SECONDARY MARKET PRICES cents to the dollar to close at 50 cents to the Percentage offace value dollar. Although national elections depressed 8-- 1 the price of Polish debt in late September, . / Poland's DDRA rose almost 4 cents in the 70 quarter on investor confidence about continu- ,,*'f ing economic reforms and progress on debt. 60 sf Elsewhere, Panama's debt was up 4.25 cents 60. at 37 cents to the dollar, and Bulgaria also saw Brady countries _3/ gains, despite uneven progress on a debt sc) iagreement. * THE FIRST LATIN AMERICAN EUROBOND 40 INDEX IS LAUNCHED. The Morgan Latin Eurobond Index (LEI), the 30 sb, - .. .. / V first for Latin America, reflects total returns on fixed-rate eurodollar bonds issued by Latin V V V~ SlMICs* American public and private sector borrow- 20 - . l ers. The index tracks only the traded bonds and covers 46 issues with a face value of $8.6 Severely indebted middle-income countries billion. The liquid section of the market is es- Nigerian debt prices were also higher in the timated to be about 35 percent of total quarter. eurobond debt (of more than $24 billion) of The largest price gains were recorded by the potential Brady countries-those coun- TABLE 7 tries that could get Brady-style debt treatment. BRADY MARKET LIQUIDITY Peru saw an impressive 33.8 percent gain in (US$ m I ions) P ar outstanding debt prices (for debt restructured under a Total' Active 1983 commercial bank agreement), to end the quarter at 43.5 cents to the dollar. Peru's debt Argentina Discount bonds 4,310 4,137 prices also strengthened because of anticipa- Argentina Par bonds 12,667 12,492 Argent na FRBsC 9,811 9,811 tion of the government allowing the use of for- Brazil IDU bonds 7,105 7,l05 eign debt in privatization (debt swaps). Some Mexico 2008 Aztec bonds 2,274 2,274 Mexico Discount bonds 8,486 8,218 of Peru's largest national companies have Mexco Parbonds 20,320 15,720 been targeted for sale in the near term, includ- Venezuela DCBs 5.958 5,353 Venezuela Par bonds 7,33 1 6,694 ing Centromin, the large mining conglomer- ate, Compania de Telefonos, Entel, and Actively troded (L2b) Braz I Exit bonds 1,018 1,018 Minero Peru. Nigeria Par bonds 2,051 2,051 Among the other countries that could get Philippines DCBs 697 691 Philippines FLIRBs 757 627 Brady-style debt treatment, the Dominican Philippines New money bonds 862 862 Republic continued to post large gains, with ePhil ppane Par bonds 1,894 1,741 Repubic cotinue to ost lrge gins, itti Venezuela FLIRBs 2,980 2,609 prices rising 7 cents to close at 49 cents to the Sametimes traded and dollar. Following a 12 cent rise in the second illiquid issues (L3 and L4b) 4,974 0 quarter, Morocco's (SeriesA) debtprices rose Total 93,495 81,403 a further 10 cents in the third quarter. Expec- a. Currency issues included used September 30, 1993, exchange rates, tations of a eurobond offering from the coun- b. The range for liquidity ratings is from LI, most liquid, to L4, also helped to push prices hsgher.Jordan's ~~~~~~illiquid. try also helped to push priceshigher.Jordan's c. Placed nto escrow Aprl 7, 1 993, and currently awaiting delivery. debt, the market for which is fairly illiquid, saw Source: J.P. Morgan. FINANCIAL FLOWS QUARTERLY SECONDARY MARKETS FOR DEVELOPING-COUNTRY DEBT Latin American borrowers. By contrast, about , ~~~CHART 6 90 percent of the Brady bond market (face SECONDARY MARKET SPREADS FOR SELECTED LATIN value) is liquid. The index, which is rebal- AMERICAN EUROBONDS anced at the end of each month to take ac- Basis points -6- z W r-- ---- ---- -----S--- ------ --- --- ----n-------- --l----------r- --- ---z-- X-r- count of changes in liquid issues, is dominated by Mexican issues (61.6 percent of the total at Brazil the end ofAugust 1993). Argentina's share was 500s - . 14.1 percent, Brazil's 8.4 percent, and Venezuela's 12.9 percent. The individual re- turns are weighted by market capitalization. 4 Venezuela The index allows investors to assess the performance of this market. The LEI had a 300-- . Argent-n total return of 13.8 percent in the first nine months of 1993-higher than Morgan's US 20 M Government Bond Index (10.3 percent) but 200 lower than Morgan's Emerging Market Bond /9 Index for Latin American Brady bonds (25.7 Note Spreads over comporobte US Treasures Sorce. CS FITt Bostor ord IECDI percent). OFFICIAL FLOWS: BL-ATERAL AND MULTILATERAL M DONORS PLEDGE ALMOST $2 BILLION TO cochaired by France and Japan. The move SUPPORT ECONOMIC DEVELOPMENT IN THE allowed Cambodia to regain access to credit WEST BANK AND GAZA. from the IMF. The IMF approved a drawing At a conference in October to support Middle of $9 million for Cambodia under the East peace, donors pledged almost $2 billion Systemic Transformation Facility (STF), a over five years to assist in the economic devel- temporary financing facility to assist member opment and reconstruction of the West Bank countries facing disruption of traditional trad- and Gaza-$1 billion in the first two years, ing relations and payments arrangements $600 million in the first year alone. The US because of their shift to market-based trading. agreed to provide $500 million in aid over five In early October, Viet Nam also cleared years, Japan $200 million over two years, and $142 million in arrears with the IMF, through the European Community $600 million over grants provided by a support group cochaired five years. Israel pledged $50 million in cred- by France and Japan and with short-term its and $25 million in grants over five years. bridge financing ($85 million) provided by The five-year program will invest in physical commercial banks. Viet Nam regained access and social infrastructure, such as housing, to credit from the IMF, and has been allowed schools, and roads, and in productive capac- a $17 million drawing under the STF. To sup- ity. The WorldBankwillsetuptwo trustfunds port the country's economic and financial ($50 million and $35 million) for the West programs, the IMF also made available credit Bank and Gaza. of up to $206 million over the next 12 months under a stand-by facility. E CAMBODIA AND VIET NAM CLEAR ARREARS WITH THE IMF, AND REGAIN ACCESS TO U THE WORLD BANK BOOSTS FUNDING FOR CREDIT FROM THE IMF. ENVIRONMENT PROJECTS. At the beginning of October, Cambodia The World Bank's environment project lend- cleared $52 million in arrears with the IMF ing rose to a record $2 billion in fiscal 1993, through grants provided by a support group up 67 percent on the previous year, and ac- THE WORLD BA%NK 1' OFFICIAL FLOWS: BILATERAL AND MULTILATERAL TABLE 8 and imports of capital goods, such as machin- MULTILATERAL DEVELOPMENT ery and equipment, for infrastructure and BANKS: COMPARISON OF LOAN rural projects. CHARGES, JULY 1, 1993 (percent) IDB ADB AFDB IBRD Lendingrates' 7.26 6.34 8.02 7.43 BILATERAL ODA AND EXPORT Spread on cost base 0.58 0.40 0.50 0.*5b CREDITS (variable) (variable) (fixed) (fxed) Commitment fee 0.75 0.75' 1.00 0.75' Other se-ice charge 1.00 none none none U JAPAN EXIM EXTENDS GUARANTEE TO a. Variable and set semiannually; rate differential partly ref ects the PRIVATE LOANS. dlfference in the currency composition of the borrowing pool. b. For borrowers eligible for interest rate waiver, the spread is 0.25 percent for fiscal 1994. The Export-Import Bank of Japan has ex- c. In the first year the fee is on 1 5 percent ofithe undisbursed loan, in the second year 45 percent, in the third year 85 percent, and in tended its guarantee on repayment of princi- the fourth year and beyond 100 percent. d. A one-year reduction to 0.25 percent was approved by the pal and payment of interest on loans imple- Board for fscal 1994. Source: World Bank data. mented solely through cofinancing arrange- ments by the private sector. Authorized by a counted for 8.4 percent of the institution's 1985 amendment, guarantees are being used total lending. The lending for pollution con- now in accordance with the new $120 billion SUMMARY MEASURE trol and protection of urban areas was $1.3 Funds forDevelopmentlnitiative (see below). OF TERMS OF COVER billion, for natural resource management, EXIMJapan provided such a guarantee to a BY MAJOR EXPORT CRE DIT AGE NC IES more than $500 million, and for environment syndicated loan (Y8 billion) made byjapanese Score Score building, about $173 million. life insurance companies to Greece's Hellenic Railways Organization. Elsewhere, EXIM Ja- Ageria 77 i9 U THE IFC INCREASES LENDING FOR Ch le 2 rc pan approved a $300 million untied loan to Ccna c92 .1 INFRASTRUCTURE PROJECTS. support India's trade and investment reforms, Cze-n Rep. 6 63 mngcnr 69 8 IFC financing of infrastructure projects rose as well as a $182 million energy-related loan. I a /4 83 dramatically in fiscal 1993 to $379 million for It also provided $300 million in untied loans 8i< stal n4 8,4 Romania 84 90 its own account for 17 projects. In addition, to Bulgaria and Turkey. Ti s a 74 854 the IFC approved financing of $357 million The US Export-Import Bank raised its guar- Co or no a c c7 for the account of participants in its loan syn- antee fee from 2 percent to 4 percent on fi- Cmara 6 1 ; I Ilndoesa .8 75 dications program. The emphasis is on private nancing for large aircraft. The increase was Mcu.pco 68+ B3 sector projects in power, telecommunications, prompted by Eximbank's desire not to PhNp Po es 65 7/2 Venezaeia 63 06 transport, and environmental services. In Sep- underprice credit relative to the private mar- 7 cbaiocce 6 -Q tcmbcr, the IFC approved $165 million for ket and other export credit agencies. Several Fyp: 44 E6 Argentina's power sector. The loans for developingcountrieshaveusedExim-guaran- lIan 45 63 Mce co 55 84 EDENOR, a recently privatized electricity dis- teed finance to purchase aircraft, inclulding Pcicanc 38 8 tribution company,. consist of $45 million in airline carriers in China, Indonesia, Korea, Scuter ANrc- 4 >27 long-term loans from the IFC's own account and the Philippines. Tur, .9 were selling more risk-hedging instruments, sure to increase lending to boost earnings, but r eot' I he10 -be- -o- r erch and aGerrn.e' oarks tre O Dtccrnlber such as swaps and options. Banks' trading they are likely to remain selective. Long-term 992, the n. -mbt s ,o - japir0ese banks are as ot March 1993 and desks also benefited from volatility in securi- credit and trust banks, which have been slow the numbe -s fm o US and UK D.nl.s are as ofne 30. "3 ties and currency markets, reportedly posting to dispose of nonperforming loans, are un- Septemnber 993 large gains. Consumer loans were also higher, likely to see an early recovery in lending. 22 FINANCIAL FLOWS QUARTERLY FINANCIAL BRIEF * DESPITE GREATER INTEGRATION WITH returns are not predictable. If they are, the TABLE II INDUSTRIAL-COUNTRY MARKETS, EMERGING marketmaybe inefficient. One simple testof BETAS OF IFC TOTAL MARKETS STILL APPEAR INEFFICIENT. RETURN INDEXES efficiency IS autocorrelation. WITH RESPECT TO WORLD (MSCI) Fueled by foreign inflows, emerging stock Time-series evidence indicates the pres- INDEX markets have seen sharp increases in market ence of significant first-order autocorrelation (us$) capitalization in the past few years. Moreover, in total returns for some emerging markets, Argent n 13;, 3 0 42 the stock market's role as an asset allocation particularly Chile, Colombia, Mexico, Paki- Braz -0 C' 9 4 mechanism has improved. In particular, mar- stan, the Philippines, Portugal, Turkey, and C0l e 03 0.25 kets have become more integrated (though Venezuela. The average first-order autocorrel- Cok'rn`-la C not completely) with global capital markets. ationforreturnsin20emergingmarketsis O.2, Ir.a 3.T 3.'4 One aspect of this financial integration is that compared with less than 0.1 for most indus- rden -la . 01 the prices of assets in emerging markets are trial countries. Moreover, the first-order auto- C t assets in developed stock markets. indicating that emerging markets do not have N gerild 0 23 There are several indications of increased the price efficiency of industrial countries. Pa stan 8.03 Pui Dp net - 1.80 integration. First, time-series evidence shows This partial predictability adds another PrtgwL I 9 that the correlation (or comovement) be- dimension to the potential benefits to inves- Ta wan (Cr na' 0 72 Tnh; arid -013l (' Ca tween emerging-market equity returns and tors of investing in cmerging markets. While 0U-l (.2M developed-market returns has increased, low correlations and high returns indicate that Vennyuija - -0.28 Can bbv' O 2 C3 -3013 although it is fairly low, even negative in some adding emerging markets in a well-balanced Avc rage 0 24 0.37 cases. Second, the sensitivity of emerging- global portfolio enhances performance-that Min,.' marketequity returns to world market move- is, the risk-return profile of the portfolio-the E=e,,r, r.E ripnMotke't ( a93) ments has risen. The beta coefficient, a good predictability characteristic of returns suggests summary measure of integration with the rest that returns may be further enhanced.1 Invest- of the world (if the benchmark portfolio mentweights and allocations based on regres- chosen is efficient), has increased for most sion forecasts rather than on the historical TABLE 12 stock markets, from an average of 0.24 for all minimum-variance portfolio are optimal. Fi RST-ORDER markets in 1975-85 to 0.37 in 1986-92. Using this predictability feature can improve (PI) OF MONTHLY PER- The degree of financial integration varies the portfolio performance. CENTAGE CHANGES IN IFC TOTAL considerably across countries, however. Por- One factor in this partial predictability is RETURN INDICES tugal is highly integrated with major devel- price adjustment delays. If the market is char- (U,'$' P oped markets. Brazil, Malaysia, and Mexico acterized by delays, news will be reflected with A ,1lc also appear to be more integrated than oth- a lag. Price adjustment delays are likely to Braz IoCo2 ers, such as India, Venezuela, and Zimbabwe. occurwhen a stock is not continuously traded. 'hce I r, Some barriers to integration may be high Another explanation may be discontinuous nr 0 C3'. and variable inflation, the small size of emerg- markets, which arise from illiquidity or the ab- idia ° 137 00riesia C 284 ing stock markets and their lack of internation- sence of market-makers. 0000 f ally listed securities, weak investor protection, A more subtle explanation is time variation K,-EC F Fo cf -0.0C and inadequate disclosure requirements. in betas. If betas do vary over time, estimated ae, s. 0 1.7 Despite greater integration, emerging values could be biased and not truly measure r 0 0u5 Pa star; 0 2513 markets have not necessarily become more the sensitivity of returns to market risk, al- t; pp r 0 c,333 efficient in pricing. One indicator of efficiency though the market is nevertheless efficient. loriupag 0 2P87 Twan 0 017-r is the extent to which stock returns can be As emerging stock markets become more T -. I ar1 D 4 predicted from past behavior. Efficient pric- integrated with the rest of the world and more I. rey Dey33 ing means that stock prices follow a random efficient, the benefits of diversification, as well Ve iorn Print irs,nr.ri casting stock prices is presentprices, and stock Conditioning information (1993). t9nein3 SLiar Mai)iir t-9¢13) THE WORLD BANK 23 STATISTICAL APPENDIX TABLE A.t TOTAL EXTERNAL DEBT (US$ millions) Country group or country 1986 1987 1988 1989 1990 1991 1992a DRS reporters 1,087,217 1,227,912 1,219,604 1,249,002 1,350,836 1,434,436 1,491,444 Long-term 914,278 1,041,395 1,025,636 1,033,147 1,102,597 1,157,953 1,194,307 Official 368,936 449,988 452,894 473,238 532,693 583,026 598,201 Private 545,342 591,407 572,741 559,909 569,904 574,928 596,106 Short-term 130,363 143,720 158,912 183,912 213,726 238,483 259,021 IMF credit 42,575 42,797 35,057 31,943 34,5 13 37,999 38, 117 Sub-Saharan Africa 115,907 142,531 145,1 13 1 53,239 172,493 178,520 1 78,242 East Asia and Pacific 182,438 201,612 202,671 203,464 233,940 268,298 295,551 Europe and Central Asia 173,926 203,870 203,288 217,924 243,01 1 263,676 279,096 South Asia 79,92 1 92,578 96,666 103,670 113,912 120,930 127,934 Latin America and the Caribbean 410,494 445,781 426,773 421,687 442,315 456,367 464,738 North Africa and the Midd e East 124,531 141,541 145,092 149,018 145,164 146,644 145,884 Severely indebted middle-income 424,015 476,252 461,750 468,083 499,789 517,921 514,530 Algeria 22,905 25,021 26,745 28,574 29,202 28,787 26,048 Angola 2,826 4,424 5,061 6,767 8,180 8,713 9,641 Argentina 52,450 58,458 58,741 65,226 62,19 65,361 67,569 Bolivia 5,575 5,836 4,901 4,135 4,278 4,077 4,243 Brazil 113,705 123,837 115,71 1 111,374 116,417 117,350 121,1 10 Bulgaria 5,866 8,255 8,934 10,124 10,867 1 1,970 12,146 Congo 3,492 4,296 4,085 4,257 4,922 4,832 4,751 C6te d'lvoire 10,550 12,576 12,578 14,058 16,614 17,557 17,997 Ecuador 9,334 10,473 10,745 1 1,317 12,109 12,468 12,280 Jamaica 4,187 4,696 4,532 4,536 4,627 4,480 4,303 Jordan 5,019 6,391 6,666 7,328 8,267 8,636 7,929 Mexico 100,881 109,460 99,204 93,817 105,958 115,291 113,378 Morocco 17,890 20,777 21,021 21,663 23,568 21,333 21,335 Panama 4,859 5,630 6,066 6,318 6,678 6,733 6,505 Peru 14,887 17,490 18,245 18,583 20,067 20,718 20,293 Poland 36,670 42,632 42,131 43,125 49,395 52,781 48,521 Syrian Arab Republic 12,918 15,997 16,383 16,881 16,446 16,835 16,481 Severely indebted low-income 140,625 166,778 170,121 174,395 175,553 179,576 177,898 Moderately indebted low-income 127,083 150,930 157,468 167,259 192,122 208,720 224,090 Moderately indebted middle-income 211,31 1 237,081 237,894 247,679 269,612 283,387 304,369 Selected countries' 417,796 469,686 472,613 475,750 512,792 551,805 587,417 Chile 21,144 21,489 19,582 18,032 19,227 17,947 19,360 China 23,746 35,296 42,362 44,812 52,554 60,851 69,321 Colombia 15,362 17,008 16,995 16,878 17,232 17,334 17,204 Egypt 46,341 52,018 52,485 51,498 40,104 40,646 40,187 Hungary 16,907 19,584 19,603 20,390 21,269 22,777 21,900 India 48,286 55,753 58,404 63,810 68,698 71,642 76,983 Indonesia 40,094 49,769 51,447 53,594 67,171 76,432 84,781 Korea, Rep. of 46,724 39,808 35,716 32,799 34,988 39,634 42,999 Malaysia 21,880 22,839 18,567 16,278 16,063 17,780 19,837 Nigeria 23,403 30,655 31,246 31,978 34,537 34,436 30,959 Philippines 28,231 29,808 29,023 28,508 30,424 32,224 32,498 Thailand 18,505 20,305 21,664 23,432 28,208 35,828 39,424 Turkey 32,832 40,783 40,782 41,364 49,147 50,226 54,772 Venezuela 34,340 34,570 34,738 32,377 33,170 34,046 37,193 Note: Table includes data only for DRS reporters. See table A. I I for country classifications. a. Projection. b. Most of these countries are also included in the indebted country groups. Source: World Bank, Debtor Reporting System. I1 FINANCIAL FLOWS QUARTERLY STATISTICAL APPENDIX TABLE A.2 AGGREGATE NET LONG-TERM RESOURCE FLOWS (US$ b Ilions) Type offinance 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 Official development finance 35.4 34,2 34.5 35.3 38 37.4 35.9 39 56.9 58.9 52.4 Official development assistance 22.5 21.5 21.1 25.4 27.5 31.9 31.2 33.4 42.9 44.5 46.4 Off.calgrantsa 10.5 10 12.2 14.4 15.7 16.4 17.9 18.6 27.6 30.5 32.5 Official concessionary loans 12 11.5 8.9 11.1 11.8 15.4 13.3 14.8 15.2 13.9 13.9 Bilateral 8.2 7.9 5.2 7.1 7.3 10 7.9 9.5 8.9 7.3 6.5 Multilatera 3.8 3.6 3.7 4 4.5 5.4 5.4 5.3 6.3 6.6 7.4 Official nonconcessionary loans 12.9 12.7 13.4 9.9 10.6 5.5 4.8 5.6 14 14.5 6 Bilateral 5.2 5.3 4.7 1.7 1.5 -1.9 -1.4 -1.1 5.3 6.7 1.2 Multilateral 7.7 7.4 8.7 8.2 9.1 7.5 6.2 6.7 8.7 7.8 4.8 Private flows 55.7 38.7 37.2 27.6 19.1 20.8 31.5 30.4 38.6 47.5 82 Private oans 44.6 30.1 28.9 16.7 9.2 7.2 11.8 7 14.1 12.5 38.8 Commercial banks 31.7 21.1 24.1 6.3 2 0.4 6.8 2.5 -2 3.6 17.5 Other private 12.9 9 4.8 10.4 7.2 6.7 5 4.5 16 8.9 21.2 Foreigndrectinvestment I .1 8.6 8.3 10.9 9.8 13.7 19.7 23.4 24.5 35 43.2 Aggregate net flows 91.2 72.8 71.7 62.9 57.1 58.3 67.4 69.4 95.5 106.5 134.4 Aggregate nettransfers 29.3 14.5 8. -3.5 -6.5 -7.4 -6.8 0 27.9 37.5 65.1 Memo Items Technical cooperation grants 6.6 6.9 7.1 8.5 8.8 10.5 1 1.8 11.7 13.7 14.6 15.1 Private grants 2.3 2.3 2.6 2.9 3.3 4 4.3 4 4.9 5.2 5.5 Net use of IMF credRt 6.6 11.1 4.5 -0.2 -2.5 -5.8 -5.5 -2.3 0.1 3.2 1.1 Real aggregate net resource flows (deflated by mportuntvalue index) 77.9 65.2 65.7 60.3 57.1 60.3 65.7 68.5 94.1 100.8 123.6 lmportpriceindex 117.1 111.8 109.1 104.3 100 96.6 102.5 101.3 101.5 105.6 108.7 Note; Table ncludes data only for DRS reporters. See table A. I I. a. Excludes technical cooperation grants. b. Includes IMF Trust Fund and Enhanced Structural Adjustment Fac lity. Source: Wodd Bank, Debtor Reporting System; OECD; data on foregn direct investment are from the IMF. THE WORLD BANK _. STATISTICAL APPENDIX TABLE A.3 BANK AND TRADE-RELATED NONBANK CLAIMS (US$ mill ons) 1992Q4 Trade-related Bank Guaranteed nonbank Country group or country 1988 1989 1990 1991 1 992Q2 Total claims claims claims All developing countries 774,168 774,066 821,486 848,016 876,811 884,170 744,858 11 7,589 1 39,3 1 2 Sub-Saharan Afrca 71,418 69,304 77,294 75,355 75,637 72,990 50,926 10,4 2 22,064 EastAsiaand Pacific 140,123 138,457 167,383 191,490 98,613 2 4,091 195, 56 13,824 18,935 Europe and Central Asia 147,414 159,746 187,122 191,272 97,542 194,323 165,771 34,837 28,552 Latin America and the Caribbean 272,355 258,312 238,612 242,205 249,830 251,102 217,583 21,943 33,519 North Africa and the Middle East 123,153 126,752 128,586 26,724 132,512 127,483 94,814 3 1,278 32,669 South Asia 19,705 21,495 22,489 20,970 22,677 24,181 20,608 5,295 3,573 Severely indebted middle-income 300,460 291,080 286,585 291,301 296,986 295,764 246,672 37 160 49,092 Algeria 19,860 20,285 21,014 21,583 21,061 21,980 9,082 13,530 2,898 Angola 1,665 2, 68 2,370 2,669 2,913 3,275 2,145 648 1,130 Argentina 38,693 35,787 34,475 35,797 36,598 38,655 33,534 2,320 5,121 Bolivia 716 453 463 512 672 555 295 45 260 Brazi 83,978 77,887 76,167 70,917 74,316 73,906 64,042 2,780 9,864 Bulgaria 7,703 8,324 9,348 8,898 8,507 8,126 7,419 481 707 Congo 1,645 1,537 1,724 1,622 1,615 1,606 980 152 626 C6te d'lvoire 4,122 4,186 4,379 4,042 4,137 3,783 2,508 270 1,275 Ecuador 5,528 5,202 4,773 4,463 4,466 4,076 3,607 419 469 Jamaica 807 983 975 737 761 730 489 130 241 Jordan 3,157 3,217 3,657 3,221 3,289 2,851 2,065 937 786 Mexico 75,036 75,507 62,684 72,426 74,518 74,035 65,719 10,562 8,316 Morocco 7,200 7,201 8,002 8,027 8,097 7,820 5,366 2,172 2,454 Panama 21,706 20,006 22,855 22,916 22,601 22,537 22,157 157 380 Peru 6,486 5,967 6,179 6,138 5,935 5,783 3,414 320 2,369 Poland 20,789 21,044 26,301 26,274 26,503 25,120 13,152 2,220 1 1,968 Syrian Arab Republic 1,369 1,326 1,219 1,059 997 926 698 17 228 Severely indebted low-income 57,129 55,583 57,373 55,162 55,318 50,346 30,148 6,671 20,198 Moderately indebted low-income 45,589 48,828 59,439 61,777 66,466 71,262 61,703 9,057 9,559 Moderately ndebted middle-income 147,001 49,112 157,935 57,335 61,270 164,609 145,403 35,919 19,206 Selected countriesa 240,385 236,512 259,745 278,430 288,780 302,408 263,123 33,571 39,285 Chile 1,548 9,880 9,823 8,884 9,829 10,837 10,217 711 620 China 27,631 26,682 34,430 41,381 40,615 47,935 44,114 5,256 3,821 Colombia 9,255 8,841 8,889 8,431 8,341 8,615 7,133 1,347 1,482 Egypt 7,642 8,689 14,224 13,246 13,276 10,840 4,424 2,538 6,416 Hungary 1,815 12,219 12,359 1 1,144 10,450 9,217 8,648 907 569 Inda 14,342 15,950 15,640 14,837 16,323 18,130 15,887 3,229 2,243 Indonesia 23,965 25,507 34,850 39,113 42,262 45,489 40,225 3,672 5,264 Korea, Rep. of 31,480 31,503 36,216 41,455 43,786 45,056 42,637 1,692 2,419 Malaysia 10,037 9,141 9,252 9,991 10,473 1 1,965 10,924 659 041 Nigeria 3,627 11,865 12,796 12,040 11,581 10,386 4,737 1,852 5,649 Philippines 14,507 1 1,914 1 1,969 1 1,231 10,420 10,182 7,465 874 2 717 Thaiand 10,559 12,376 18,035 24,201 27,230 29,686 27,544 962 2,142 Turkey 16,630 16,705 22,230 23,002 24,266 24,234 20,831 7,662 3.403 Venezuela 27,347 25,240 19,032 19,474 19,928 19,836 18,337 2,210 499 Offshore banking centers 78,778 89,226 1 16,422 21,323 129,344 138,5 19 136,152 4,332 2,367 Oil exporters 157,457 66,227 175,652 182,179 186,223 186,373 152,815 43,08 33,558 DRS reporters 1 15,496 122,416 132,264 37,694 142,165 145,053 20,730 41,707 24,323 DRS reporters 677,505 673,370 718,257 747,332 770,509 783,069 663,91 1 105,1 14 1 19,158 Note: See table A. I for country c assifications. a. Most of these countries are a so included in the indebted country groups. Source: OECD; Bark for International Settlements, StGtstics on Externao Indebtedness. 26(; FINANCIAL FLOWS QUARTERLY STATISTICAL APPENDIX TABLE A.4 COMMERCIAL BANK CLAIMS ON DEVELOPING COUNTRIES (US$ millions) Claims Liabi ties Country group or country 1991 1 992Q3 1 992Q4 1 993Q I 1991 1 992Q3 1 992Q4 1 993Q I All developing countries 696,655 757,290 736,235 738,596 681,990 695,308 662,757 649,462 Sub-Saharan Africa 52,497 54,625 51,489 50,367 44,131 45,946 42,048 41,940 East Asia and Pacific 174,109 194,335 193,875 196,050 146,858 155,150 145,902 136,745 Europe and Centra Asia 156,834 172,547 158,838 159,298 81.519 98,975 92,319 92,634 Latin America and the Caribbean 212,922 225,831 224,900 225,11 1 144,419 142,152 140,261 138,428 North Africa and the Middle East 79,921 86,197 83,487 84,478 218,518 208,535 201,967 197,103 SouthAsia 20,372 23,755 23,646 23,292 46,545 44,550 40,260 42,612 Severely indebted middle- ncome 245,873 256,370 252,224 25 042 154,402 156,686 154,625 153,586 Algeria 15,016 15,035 13,904 14.460 3,353 3,421 3,128 3,407 Angola 1,623 ,948 2,033 1,923 478 716 748 642 Argentina 3 ,282 32,659 33,566 32,894 20,948 19,584 19,942 20,772 Bolivia 260 331 295 281 870 782 766 750 Brazil 61,428 64,810 64,132 64,810 24,372 25,912 26,826 26,931 Bulgaria 8, 96 8,332 7,419 7,276 1,027 1,422 1,402 1,276 Congo 1,093 1,080 967 805 327 377 348 408 C6te d'lvoire 2,765 2,838 2,452 2,131 1,875 2,214 2,003 1,968 Ecuador 3,919 3,687 3,601 3,422 2,805 2,718 2,841 2,670 Jamaica 421 453 485 441 611 630 660 608 Jordan 2,183 2,160 1,842 1,850 7,018 7,408 6,884 6,810 Mexico 65,064 69,441 67,785 68,59 28,170 26,869 26,163 26,175 Morocco 5,416 5,470 5,239 4,981 4,404 5,495 5,722 5,298 Panama 29,123 29,168 3 325 30,532 44,253 43,019 40,513 40,048 Peru 3,644 3,52 3,388 3.245 3,658 3,971 3,897 3,904 Poland 13,622 14,665 13,093 12,747 5,137 6,733 7,522 6,544 Syrian Arab Republc 818 772 698 653 5,096 5,415 5,260 5,375 Severely indebted iow-income 33,069 32,457 29,867 30,052 50,508 53,519 50,477 50,584 Moderately indebted ow-income 51,314 59,526 60,292 60,752 31,304 35,467 33,025 33,439 Moderately indebted middle-income 133,397 145,490 138,110 137,267 85,5 18 92,098 88,354 86,924 Selected countriesa 234,815 257,821 258,096 256,715 180,591 199,512 189,425 176,518 Chile 8,038 9,756 10,121 10,455 6,607 6,609 6,780 6,417 China 37,107 39,417 42,676 38,936 46,843 47,273 48,171 41,344 Colomba 6,610 6,990 7,260 7,251 8,838 8,864 8,242 7,879 Egypt 5,773 5,092 4,269 4,076 20,458 23,170 22,315 22,687 Hungary 10,506 9,992 8,648 8,978 3,742 4,020 2,840 2,449 India 12,457 15,184 15,456 14,983 10,058 9,389 6,770 7,582 Indonesia 34,213 39,525 40,084 40,984 11,387 16,341 17,179 16,736 Korea, Rep. of 39,155 43,597 42,653 43,234 10,482 14,019 15,180 15,704 Malaysia 9,166 1 1,925 1 1,094 12,374 9,521 14,686 12,197 8,321 Nigeria 5,808 5,291 4,563 4,235 5,431 5,206 4,362 4,182 Philippines 8,751 7,400 7,433 7,250 4,849 4,979 4,528 4,915 Thailand 22,705 26,766 27,419 28,079 5,454 5,582 4,593 3,958 Turkey 16,250 17,742 17,840 17,935 12,062 15,567 14,573 13,408 Venezuela 18,276 19,144 18,580 17,945 24,859 23,807 21,695 20,936 Offshore bankingcenters 1,077,896 1,058,178 1,037,802 1,043,560 1,014,574 963,849 941,485 920,248 Oil exporters 141,106 152,816 143,967 144,099 194,017 181,066 17i,697 170,182 DRSreporters 107,175 119,493 1 11,218 1 10,110 54,739 56,284 54,745 55.228 DRS reporters 766,180 785,435 773,322 773,249 602,008 607,573 593,290 583,180 Note: See table A. I I for country classifications. a. Most of these countries are also nc uded n the Indebted country groups. Source: Bank for Intemational Settlements, irernotionol Banking and Finoncia Market Developments. THE WORLD BANK 2I STATISTICAL APPENDIX TABLE A.5 COMMERCIAL BANK CLAIMS ON DEVELOPING COUNTRIES, BY COUNTRY OF ORIGIN (US$ millions) Francea Germanyb Country group or country 1991 1 992Q I 992Q2 1 992Q3 1 992Q2 1 992Q3 1 992Q4 1993Q I All developing countries 86,837 85,864 89,448 96,48 146,839 158,036 145,198 49,416 Sub-Saharan Africa 12,988 11,916 12,753 13,487 9,1 12 9,716 8,953 9,257 East Asia and Pacific 17,522 17,833 18,463 22,086 16,422 17,912 16,365 7,128 Europe and Centra Asia 17,513 17,694 18,142 19,540 63,432 69.508 62,724 64,344 Latin America and the Caribbean 17.606 17,549 18,193 18,729 32,995 35. 66 33,038 34,277 North Africa and the Middle East 19,269 18.873 19,631 20,116 15,961 16,242 15,620 15,806 South Asia 1,939 2.000 2,265 2,523 8,918 9,493 8,498 8,604 Severely indebted middle-income 30,547 29,702 30,747 31,422 38,160 41,386 38,156 38,908 Algera 5,775 5,276 5,252 5,287 1,827 1,919 1,648 1,601 Angola 730 707 732 744 .. Argentina 2,335 2,331 2,424 2,298 7,178 7,602 7,357 7,631 Bolivia 18 16 18 18 281 312 310 307 Brazil 7,885 7,880 7,810 8,292 0,656 1 1,293 10,656 10,973 Bulgaria 654 623 648 664 2,619 2,905 2,524 2,548 Congo 697 645 705 714 .. C6te d'lvoire 1,936 1,741 1,956 2,065 345 402 348 347 Ecuador 164 146 57 152 646 636 585 608 Jamaica 14 2 14 12 .. Jordan 1,020 899 778 1,095 517 556 514 439 Mexico 2,357 2,515 2.80 1 2,849 4,278 4,896 4,470 4,739 Morocco 2,199 2,026 2,173 2.296 1,181 1,256 1,129 1.139 Panama 2,530 2,695 3,012 2,596 1,342 1,514 1,473 1,428 Peru 640 619 623 629 1,001 1,1 17 1,014 1,020 Po and 1,321 1,307 1,399 1,425 5,750 6,401 5,607 5,605 Syrian Arab Republic 271 262 245 285 540 577 521 523 Severey indebted low-income 7,113 6,708 7,028 7,36 7,337 7,036 6,301 6,368 Moderately indebted low-income 4,844 4,707 4,857 5,584 11,580 12,410 1 .288 1,651 Moderately indebted middle-income 13,513 12,486 12.957 14,213 49,257 53,567 48,859 50,469 Selected countries' 23,758 23,281 23,793 26,742 39,747 42,264 38,626 39.879 Chile 437 421 523 539 1,439 1,587 1,65 1,777 China 3,769 3,454 3,937 4,645 3,005 3,108 2,381 2,686 Colombia 512 573 575 575 993 1,123 1,054 1,044 Egypt 2,437 2,242 2,34 2,364 3,352 3,046 2,650 2,641 Hungary 2 7 189 193 175 3,851 4,294 3,668 3,936 India 1,362 1,460 1,583 1,783 5,556 5.961 5,367 5,456 Indonesia 2,537 2,392 2,246 2,692 3,7 3 3,944 3,705 3,956 Korea, Rep. of 4,573 5, 96 4,885 5,904 3,534 3,837 3.778 3,746 Malaysia 455 362 470 712 989 1,100 1,093 1,209 Nigera 1,500 ,210 1,258 1,295 863 904 745 702 Philippines 1,389 1,130 888 894 426 453 506 494 Thailand 1,276 1,527 1,552 1,701 2,320 2,657 2,600 2,643 Turkey 1,928 1,828 1,959 2,077 6,832 7,348 6,828 6,829 Venezuela 1,367 1,300 1,384 1,386 2,876 2,901 2,602 2,760 Offshore banking centers 35,166 36,410 37,079 42,766 61,149 65,082 66,516 70,023 Oil exporters 21,124 19,943 20,875 21,757 40,675 44,037 40,555 41,796 DRS reporters 17,1 4 5,886 16,491 17,633 38,616 41,991 38,616 39,733 DRS reporters 75,903 74,558 77,252 83,040 131,998 142,379 130,552 134,325 28 FINANCIAL FLOWS QUARTERLY STATISTICAL APPENDIX Italy Japan' Country group or country 1991 1992Q I 1992Q2 1992Q3 1987Q I 1987Q3 1988Q I All developing countries 17,666 17,685 1 8,264 18,086 73,751 75,1 99 82,7 11 Sub-Saharan Africa 881 850 848 736 2,878 3,044 3,322 East Asia and Pacific 113 107 95 107 21,294 21,251 24,973 Europe and Central Asia 7,960 8,344 8,583 8,711 10,244 11,227 12,014 Latin America and the Caribbean 5,597 5,472 5,754 5,543 33,623 33,776 35,617 North Africa and the Middle East 884 785 826 729 4,053 4,021 4,216 South Asia 2,230 2,128 2,159 2,260 1,659 1,880 2,569 Severely indebted middle-income 7,255 6,774 7,095 6,850 36,070 36,705 39,422 Algeria 2,695 2,690 2,852 Angola Argentina 1,520 1,479 1,568 1,584 5,227 4,982 5,61 1 Bolivia 4 4 4 5 3 2 3 Brazil 947 850 923 833 9,241 9,132 9,723 Bulgaria 567 548 585 640 952 1,132 1.172 Congo C6te d'lvoire 31 9 22 24 154 156 160 Ecuador 152 183 133 185 801 791 879 Jamaica 17 17 18 Jordan - 23 19 17 Mexico 1,903 1,780 1,869 1,734 10,495 11,058 1,372 Morocco 490 359 387 388 485 471 525 Panama 4,964 5,246 6,045 Peru 101 116 123 87 337 335 337 Poland 1,539 1,446 1,480 1,370 676 674 708 Syrian Arab Republic Severely indebted low-income 850 841 826 712 2,635 2,699 2,929 Moderately indebted low-income 6,756 6,992 8,216 Moderately indebted middle-income 6,511 7,000 7,176 7,398 16,640 17,225 18,284 Selected countries, 2,231 2,232 2,280 2,123 32,384 32,638 37,224 Chile 128 120 132 126 1,532 1,570 1,647 China 2,470 3,132 4,578 Colombia 110 144 158 146 1,259 1,189 1,216 Egypt 17 20 20 Hungary 353 271 278 232 3,228 3,391 3,643 India 1,409 1,626 2,190 Indonesia 5,214 5,289 5,841 Korea, Rep. of 5,720 4,777 5,413 Malaysia 2,949 2,838 3,041 Nigeria 850 841 826 712 272 304 297 Philippines 113 107 95 107 2,340 2,282 2,583 Thailand 2,187 2,429 2,929 Turkey Venezuela 678 749 791 800 3,787 3,791 3,826 Offshore banking centers 20,859 20,152 24,058 23,594 12,673 15,070 17,447 Oil exporters 6,603 7,152 7,288 7,457 1 1,993 12,550 13,084 DRS reporters 6,603 7,152 7,288 7,457 1 1,475 12,011 12,587 DRS reporters 15,435 15,557 16,105 15,826 77,461 78,924 87,103 (table continues on next page) THE WORLD BANK 29 STh-TISTIcCAL APPENDIX TABLE A.5 COMMERCIAL BANK CLAIMS ON DEVELOPING COUNTRIES, BY COUNTRY OF ORIGIN (CONTINUED) (US$ millions) Nether andsa Switzerland Country group or country 1990 1991 992Q2 1992Q4 1988 1989 1990 1991 All developing countries 15,746 18,887 20,958 21,14 2 949 21,799 25,473 25,577 Sub-Saharan Africa 1,004 994 1,177 949 771 1,882 2,178 2,180 EastAsiaand Pacific 2,093 4,021 4,604 3,577 1.613 1,818 2,161 2,975 Europe and Centra Asia 3,441 4,012 4,140 4,417 7,152 7,567 8,411 7,470 Latin America and the Caribbean 6,823 7,280 8,611 9,512 6,745 6,379 7,870 8,195 North Africa and the Middle East 1,336 1,934 1,681 1,782 4,207 3,752 4,278 4,231 South As a 1,050 647 746 905 461 402 574 527 Severe y indebted middle-income 5,474 6,093 6,948 7,312 10,275 10,444 12,312 11,906 Algeria 550 765 722 688 296 301 338 307 Angola .. .. .. 55 73 97 63 Argentina 1,107 029 1,329 1,439 1,428 1,207 1,414 1,471 Bolivia .. .. .. 30 10 12 12 Brazil 1,102 1,321 1,639 2,003 2,127 2,197 2,862 2,812 Bulgaria .. .. .. 483 444 482 445 Congo .. .. 3 2 2 4 C6te d'lvoire .. .. .. .. 95 1 1 104 11 I Ecuador 319 301 363 257 41 72 107 125 Jamaica .. .. .. .. 4 13 21 18 Jordan .. .. .. .. 142 89 93 93 Mexico 1,697 1,853 2,017 2,168 403 1.322 1,716 1,864 Morocco .. .. .. .. 123 103 151 162 Panama 404 433 510 403 3,452 4,005 4,331 3,782 Peru .. .. .. .. 191 84 108 42 Po and 295 392 368 353 372 379 449 479 Syrian Arab Repub ic 32 35 23 15 Severely indebted low-income 356 174 339 130 2,007 1,966 2,143 2,164 Moderately ndebted low-income 1,099 1,318 1,480 ,659 728 703 976 808 Moderately indebted m ddle-income 3,221 3,596 4,074 4,753 5,464 5,794 6,492 5,684 Selectedcountries' 3,433 4,387 5,621 5,981 5,188 4,806 6,286 6,120 Ch le 389 398 499 668 249 193 304 376 China .. 413 515 435 196 276 363 438 Colombia .. 277 346 537 190 194 181 168 Egypt .. .. .. .. 564 454 504 416 Hungary 270 .. .. .. 315 297 294 118 India .. .. .. .. 336 250 379 275 Indonesia 1,099 1,318 1,480 659 154 189 246 193 Korea, Rep. of .. 467 826 775 247 336 584 712 Malaysia .. .. 65 58 79 172 Nigeria 149 .. 364 311 320 311 Philippines .. .. .. .. 185 199 178 144 Thailand 311 451 773 458 246 267 401 552 Turkey 436 545 576 731 1,479 1,202 1,865 1,579 Venezuela 779 517 607 719 597 579 587 665 Offshore banking centers 13,944 10,492 12,125 12,305 19,620 18,1 16 21,133 20,833 Oilexporters 2,482 3,155 3,432 3,688 5,268 5,788 6,187 5,950 DRSreporters 2,482 2,705 3,055 3,281 3,660 4,305 4,612 4,131 DRS reporters 12,980 14,91 1 17,242 17,813 22,821 23,062 27,053 26,129 FINANCIAL FLOWS QUARTERLY STATISTICAL APPENDIX United Kingdoma United Statesa Country group or country 1989 1990 1991 Q2 1991 Q4 1992Q2 992Q3 1992Q4 1993Q I All developing countries 56,419 48,975 45,189 49,582 69,207 71,359 73,031 76,558 Sub-SaharanAfrca 8,251 8,001 7,430 7,664 2,871 2,871 2,930 2,832 EastAsiaand Pacific 5,423 5,657 5,888 7,020 13,168 14,230 14,325 14,788 Europe and Central Asia 11,210 10,780 9,574 10,436 4,819 4,665 4,359 4,385 LatinAmericaandthe Caribbean 23,623 16,856 16,271 17,475 42,264 43,835 45,746 48,094 North Africa and the Middle East 6,338 5,981 4,508 5,289 5,122 4 865 4,591 5,320 South Asia 1,574 1,700 1,5 8 ,698 963 893 1.080 1,139 Severely indebted m ddle-income 24,132 17,725 16,695 17,771 30,803 32,062 33,143 34,696 Algera 784 760 655 921 532 497 486 513 Angola 32 33 31 22 ,. Argentina 3,343 2,352 2,244 2,738 4,502 5,159 5,777 6,357 Boliva 26 8 .. 6 13 11 18 39 Brazi 6.890 4,694 4,226 4,104 7,049 6,714 7,352 8,025 Bulgaria 532 473 209 233 48 S l 32 43 Congo 39 37 37 39 C6ted'lvoire 292 247 148 155 27 6 18 19 Ecuador 750 546 542 514 476 513 457 495 Jamaica 69 68 63 71 145 144 147 167 Jordan 376 382 355 357 114 94 83 74 Mexico 7,500 4,909 5,270 5,6 6,323 17,223 17,277 17,437 Morocco 447 401 308 35 498 457 461 426 Panama 1,325 1,191 143 1 061 700 769 615 636 Peru 464 276 295 342 53 161 195 221 Poland 1,182 ,279 1, 07 ,188 210 242 216 234 Syrian Arab Repubi;c 81 69 62 58 13 1 9 0 Severeyindebted low-income 4,232 3,804 3,269 3,218 1,104 1,009 1,010 1,081 Moderately indebted low-income 2,552 2,676 2,491 2,895 2,463 2,701 2,734 3,196 Moderately indebted m ddle-income 10,582 9,572 8,669 9,207 17,851 17.964 18,268 18,580 Selected countries, 13,062 12,654 11,994 13,301 25, 78 26,088 26,307 27,331 Ch le 626 567 524 704 3,029 3,061 3,174 3,577 China 938 1,025 843 1,031 310 347 430 426 Colombia 785 643 546 613 1,658 1,805 1,940 1.907 Egypt 629 650 582 594 246 175 148 180 Hungary 518 330 331 299 262 249 214 281 India 1,100 1,2 9 1,083 1. 64 469 412 462 497 Indonesia 1,053 1,021 1,009 1,231 1,796 2,103 2,050 2,447 Korea, Rep. of 1,130 1,343 1,560 .842 3,771 4,230 4,032 4,050 Maaysia 329 484 495 605 501 546 716 855 Nigera 1,704 1,065 741 702 317 303 297 293 Philippines 956 797 736 717 2,81 1 2,709 2,906 2,860 Thailand 190 228 332 424 1,603 1,796 1,807 1,982 Turkey 892 1,142 1,156 1,134 1,347 1,362 1,307 1,320 Venezuela 2,212 2,140 2,056 2,241 7,058 6,990 6,824 6,656 Offshore banking centers 27,622 28,509 25,393 26,343 28,585 25,304 26.187 23,342 Oil exporters 1 1,421 0,150 8,568 9,431 10,330 10,004 9,689 9,557 DRS reporters 9,318 8,066 7,050 7,861 8,492 8.208 8,014 7,862 DRS reporters 49,093 41,055 38,079 41,917 65,494 66,695 67,539 69.954 .. Not available Note: See table A. I I for country classificat ons. a. Conso idated claims of the banks and the r worldwide operations. b. Partly consolidated aggregate c aims of the banks and their wor dwide operations. c. Most of these countries are also included in the indebted country groups. Source. De Nederlandsche Bank, Quarterly Bulletin; Banque de France, Bulletin Trimestriel; Deutsche Bundesbank, Zohlungsbilanzstotistik: Banca d'Italia, Bolletsno Economico; Banque Nationale Suisse, Les Bonques Suisse, Bank of England, Stotistscol Abstroct, Part 1: Federal Financial Institutions Exam nat on Council, U.S. Country Exposure Lending Sunrey THE WORLD BANK I l STATISTI!CAL APPENDIX TABLE A.6 MATURITIES OF BANK CLAIMS ON DEVELOPING COUNTRIES (US$ millions) 1992Q4 More than Less than I year and less More than Estimated Short-term Country group or country 199 Total I year than 2 years 2 years Unallocated short-term (% of total) All developing countries 600,573 6 18,875 3 11,372 44,989 237,845 24,669 258,738 42 Sub-Saharan Africa 45,454 44,977 23,819 3,028 16,150 1,980 18,623 41 EastAsiaand Pacific 142,099 153,360 98,811 8,635 38,353 7,561 89,032 58 Europe and Central Asia 152,775 150,624 58,712 16,671 69,109 6,132 39,559 26 Latin America and the Caribbean 180,986 187,314 85,433 9,521 85,908 6,452 74,625 40 North Africa and the Middle East 64,564 67,873 38,558 5,871 22,118 1,326 31,922 47 SouthAsia 14,695 14,727 6,039 1,263 6,207 1,218 4,977 34 Severely indebted middle-income 209,437 210,190 98,270 13,944 91,500 6,476 82,287 39 Algeria 15,496 14,684 5,827 2,394 6,255 208 2,665 18 Angola 1,518 2,01 1 1,434 125 439 13 1,235 61 Argentina 26,784 30,260 14,416 1,400 13,427 1,017 13,332 44 Bolivia 209 220 178 9 30 3 166 75 Brazil 49,074 51,404 24,942 4,705 19,683 2,074 18,988 37 Bulgaria 8,383 7,638 4,692 517 2,181 248 3,865 51 Congo 800 747 439 65 239 4 338 45 Cote d'lvoire 2,721 2,452 2,078 139 167 68 1,961 80 Ecuador 3,425 3,043 1,606 150 1,151 136 1,424 47 Jamaica 453 571 185 44 214 128 138 24 Jordan 2,034 1,540 927 127 473 13 762 49 Mexico 55,363 53,866 22,833 1,686 27,789 1,558 21,385 40 Morocco 5,122 4,888 1,545 630 2,710 3 1,134 23 Panama 21,270 21,391 1 1,287 1,024 8,456 624 10,117 47 Peru 2,906 2,566 1,839 109 506 112 1,708 67 Poland 13,248 2,363 3,662 797 7,713 191 2,779 22 Syrian Arab Republic 631 546 380 23 67 76 290 53 Severely indebted low-income 26,810 24,442 11,595 1,813 10,145 889 9,350 38 Moderately indebted low-income 41,899 43,078 23,484 3,739 14,041 1,814 19,228 45 Moderatelyiridebted middle-income 129,534 131,705 47,946 13,193 66,312 4,254 32,180 24 Selectedcountriesa 204,479 214,286 113,878 13,708 75,595 11,105 98,950 46 Chile 8,035 9,686 4,916 297 4,341 132 4,530 47 China 26,749 30,198 14,925 1,754 11,933 1,586 12,764 42 Colombia 6,260 6,996 3,042 456 3,293 205 2,501 36 Egypt 5,499 4,129 2,432 386 1,290 21 1,847 45 Hungary 10,758 8,843 2,219 959 4,907 758 1,071 12 India 11,090 1 1,101 4,066 987 5,453 595 3,237 29 Indonesia 27,318 28,417 17,183 2,447 7,719 1,068 14,026 49 Korea, Rep. of 34,254 38,812 27,716 2,187 6,515 2,394 25,706 66 Malaysia 7,890 8,475 4,076 321 3,167 911 3,578 42 Nigeria 5,523 4,154 1,325 324 2,355 150 1,024 25 Philippines 8,763 6,873 3,140 234 3,038 461 2,836 41 Thailand 19,500 22,959 15,848 1,279 4,837 995 14,765 64 Turkey 15,093 15,455 7,898 1,686 4,644 1,227 6,515 42 Venezuela 17,747 18,188 5,092 391 12,103 602 4,550 25 Offshore banking centers 459,164 486,0 11 404,983 9,576 58,696 12,756 392,433 81 Oil exporters 123,783 127,629 52,075 13,671 59,354 2,529 35,127 28 DRS reporters 104,7 7 108,807 39,822 12,201 54,663 2,121 24,299 22 DRSreporters 560,928 574,122 285.201 41,896 225,724 21,301 235,799 41 Note: See table A. I for country c assifications. a. Most of these countries are also included in the indebted country groups. Source: Bank for International Settlements, The Maturity ond Sectorel Distribution ofInteerntionol Bank Lending. FINANCIAL FLOWS QUARTERLY STATISTICAL APPENDIX TABLE A.7 FUNDS RAISED ON INTERNATIONAL CAPITAL MARKETS (US$ m Ilions) Country group or country 1988 1989 1990 1991 1992Q1I 992Q2 1992Q3 1992Q4 1993Q I 1993Q2 All developing countries 3 1,622 25,862 32,144 44,5 15 11,537 9,4 4 8,961 10,876 14,817 14,963 Bonds 8,687 6.899 7,328 12,864 5,342 4,640 5,043 6,401 10,416 0,1 39 International 5,794 4,345 5,380 9,228 3,478 3,774 2,769 3,635 6,608 8H08 Foreign 2,893 2.554 1,948 3,636 1,864 866 2,273 2,766 3,809 2,054 Loans 22,935 1 8,962 24,816 31,651 6,196 4,774 3,918 4,475 4,401 4,824 International 19,706 17,900 24,1 6 31,420 6,08 4,765 3,9 10 4,348 4,376 4,750 Fore gn 3,229 ,213 70 231 115 9 8 1 14 25 74 Sub-Saharan Africa 70 258 871 614 619 795 45 139 East Asia and Pacific 8,591 8,273 14808 1 7,559 3,730 3,225 4.510 5,223 5,096 5,752 Europe and Central Asia 11,590 10,479 [ 0257 7,31 1 1,935 2,194 2,535 3,01 3 5,930 2,803 Latin America and the Car bbean 7,284 2,051 4,242 8,424 2,3 8 2,990 1,709 2,501 3,576 6,359 Nortn Africa and the Middle East 1,392 2,403 247 0,36 1 2,920 110C 77 .. 216 50 South Asia 2,595 2,397 1,720 246 1 4 100 86 Severely indebted micole-inrcome 6,503 1,794 2,5 17 7,605 I 718 2,689 1,749 2,15 3,377 5,204 Algeria 795 397 .. 6 1 . . Angola 5 . IS .. . 325 . Argentina 4 -. . 725 2i15 380 684 250 395 275 Brazil 5,200 100 .. 1,230 770 1,525 355 360 820 1,565 Bulgaria I194 580 . .. ., Congo . . . .. .. C6te dIlvoire . .. .. .. Ecuador . .. .. .. Jamnaica .. . . 30 . ., Jordan 165 .. .. .. Mexico -. 3.0 2,350 5,554 733 450 650 1,541 2,[62 3,364 Morocco [30 6 52 ... .60 Panama .. 238 . . . .. Peru Poland 1. 63 ..5 ..9 Syrian Arao Repuo ic . . . . . .. Severely indebted ow- ncome 40 652 385 05 ... .96 Moderately inoebted low-income 3,603 5,098 7, 82 5,773 615 605 1,101 521 426 238 Moderately ndebteo middle- ncome 8,889 8,245 9,558 4,798 1 ,517 2,178 1,656 2,291 3,096 2,764 Selected countries' 17,205 16,293 20,476 21,059 4,943 5,228 6,232 7,087 7,990 8,016 Chile [Si . 285 ... 100 .. 250 .. 333 China 3,846 1,761 1,514 2,595 659 719 924 1,742 2,044 1,816 Colombia 1,000 1,641 .. 200 ... .. . 325 Egypt .. 500 -.. . .. Hungar-y 1,016 1,709 987 1,378 402 187 240 618 1,418 278 India 2.482 2,047 1,242 ISO 14 100 86 Indones a 1,008 2,70 5,462 5,527 600 505 1,015 521 426 238 Korea, Rep, of 1,533 ,322 3,982 6,094 1,280 990 1,6 2 1,322 1,057 2,1 13 Malaysia [.133 541 730 412 166 511 401 193 447 257 Philippines ... 715 ..... . . S Tnailand 1,021 1,059 1,465 1,842 707 436 557 1,08 921 1,039 Turkey 3,187 3,0 13 2,498 2,280 515 1,246 1,396 1.422 1,330 1,260 Venezuela 828 .. 1,595 581 600 435 1,. 98 357 Offshore bank ng centers 1,103 4.038 4,634 2,491 403 855 157 643 1,786 1, 151 011 exporters 4,485 3,560 5,037 5,443 3,500 760 .. 00 414 377 DRS repor-ters 4,452 2,655 4,96 943 600 760 ., 00 259 377 OECD countries 324,999 34 1,669 308,764 357,39 100,522 99,035 . 01,596 9 1,746 140,828 128,818 Mu tilateral institujtions 10,5 17 1 2,932 15,418 14,700 5,978 4,412 4,218 6,266 7,930 3,1 57 Other 1, i28 555 644 2,187 157 1,019 320 466 184 965 Totalb 369,370 385,055 361,604 421,284 1 18,597 1 14,735 1 15,251 [ 09,997 1 65,545 149,054 ,.Not ava'lable. Note See table A. I I for country classifications. a. Most of touse countries are also ncluced in the inoebted country groups. b. Includes all developing countries, offshore banking centers, OECD countries, multilateral insttutions, and the category "other." Source: OECD, Finonciol Stotistcs Monthly, Port i. THE WORLD BANK 3 I ---- *~ T -r 7 X, A .X. t" !:1-' 3;- TABLE A.8 SECONDARY MARKET DEBT PRICES (percentage of face va ue) Country group or country 1 990Q4 1991 Q2 1991 Q3 1991 Q4 1 992Q I 1 992Q2 1 992Q3 1 992Q4 1 993Q I 1 993Q2 1993Q3 Severely indebted middle-incomea 25 33 37 35 36 38 38 38 40 46 49 Algeria 80 84 86 91 83 87 92 91 95 100 Angola 28 25 20 20 20 24 25 22 20 18 18 Argentina' 20 27 39 38 42 50 50 48 50 53 61 Bolivia II 1 9 11 10 12 15 16 16 16 Brazilc 25 34 36 31 36 33 33 30 30 39 46 Bulgaria 8 15 21 20 18 17 16 13 14 21 26 Congo 8 7 4 4 4 5 6 6 6 8 9 C6te d'lvoire 3 7 8 9 8 9 7 5 6 8 13 Ecuador' 20 22 26 24 22 30 27 28 27 32 34 Jamaica 42 70 75 76 74 74 74 71 76 79 76 Jordan 25 22 25 30 30 34 34 35 35 35 44 Mexico' 46 56 60 62 63 65 66 65 70 73 76 Morocco 39 48 53 47 42 46 47 47 52 67 72 Panama 13 13 27 21 28 32 33 29 30 32 38 Peru 4 7 17 13 14 15 15 19 24 32 43 Poland' 16 29 26 23 20 23 26 25 28 32 35 Other selected countries Chile 74 88 88 90 88 89 91 91 92 93 94 CostaRicag 34 47 52 51 51 59 63 60 64 68 75 Egypt 43 45 45 46 46 47 45 45 46 46 46 Honduras 19 20 20 27 27 31 33 35 31 31 31 Hungary 85 73 65 .. .. .. .. .. Nicaragua 4 4 9 8 8 9 7 7 8 10 10 Philippines' 37 50 54 51 51 59 57 57 64 68 6 Senegal 32 42 41 43 38 37 .. .. 23 0 3 Uruguay 57 59 70 75 70 70 75 75 65 72 80 Venezuela. 50 62 70 68 58 63 62 57 59 68 70 Not available. Note: Bid price. a. Weighted by commercial bank debt outstanding (Syria is not included in these calculations). b. Guaranteed Refinancing Agreement (GRA). Prces after March 1 993 refer to par bonds offered under the Brady initiative. c. Multi-Year Deposit Facility Agreement (MYDFA). d. Multi-Year Refinancing Agreement (MYRA). e. Prices after February 1990 refer to par bonds offered under the Brady initiative. f Prices after August 1990 refer to par bonds offered under the Brady initiative. g. Prices after May 1990 refer to Ser es A par bonds offered under the Brady initiative. h. Publ c sector restructured debt, including Central Bank of the Philippines. Prices after January 1990 refer to restructured loans offered under the Brady initiative i. Prices after December 1990 refer to par bonds offered under the Brady initiative. p 1988 Debt Deferral and Restructur ng Agreement (DDRA). Source: Salomon Brothers, Euroweek, LDC Debt Report, Intemostiono/ Finoncing Review, and World Bank data. i,r'I i') 'S BE T- Lin s ' F . ''' STATISTICAL APPENDIX TABLE A.9 NET FOREIGN DIRECT INVESTMENT FLOWS TO DEVELOPING COUNTRIES (US$ m Ilions) Country group or country 1986 1987 1988 1989 1990 1991 1992a DRS reporters 9,831 13,683 19,679 23,431 24,536 35,030 43,221 Sub-Saharan Africa 719 ,392 1,044 2.636 880 1,891 1,536 EastAsiaand Pacific 3,546 4,485 7,593 9,075 11,008 13,972 19,733 Europe and Central Asia 401 612 1,331 2720 3,640 5,757 6,146 South Asia 141 196 234 234 296 333 408 LatinrAmercaandthe Caribbean 3,569 5.818 8,012 7,146 7,559 12,205 14,195 North Africa and the Middle East 1,455 1. 78 1,464 .619 1,153 872 1,202 Severely rndebted middle- ncome 2,824 5.072 7,070 5,970 5 636 9,746 13,002 Algeria 5 4 13 12 0 12 20 Angola 234 1 19 13 200 -335 665 363 Argentina 574 -19 1,147 1,028 ,836 2,439 4,179 Bolivia 10 38 -10 -24 27 52 93 Brazil 320 ,225 2,969 1,267 901 972 1,500 Bu garia 0 0 0 0 4 56 42 Congo 22 43 9 0 0 0 0 C6te d'lvoire 71 88 52 41 48 46 28 Ecuador 70 75 80 80 82 85 85 Jamaica -5 53 -12 57 138 127 87 Jordan 23 40 24 - I 38 -12 4 Mexico 1 .523 3,246 2.594 3,037 2,632 4,762 5,366 Morocco 1 60 85 167 165 320 424 Panama -62 57 -52 36 -30 -62 -30 Peru 22 32 26 59 41 -7 127 Poland 6 12 15 11 89 291 678 Syran Arab Republic 0 0 0 0 0 0 0 Severely indebted low-income ,322 1,792 1,699 3,499 ,730 1,205 1,385 Moderately indebted low-income 442 633 856 960 .406 1,840 2,034 Moderately indebted middle-income 1,549 1,644 2,756 2,738 3,205 6,767 5,636 Selected countriesb 5,762 6,617 9,756 13,608 13.807 19,768 24,583 Ch le 116 230 141 84 249 563 737 China 1,875 23 14 3,194 3,393 3.487 4,366 11,156 Colombia 674 3 9 203 576 500 457 500 Egypt 1,217 948 1,190 1,250 734 253 459 Hungary 0 0 0 0 0 1,462 1,479 India 0 0 0 0 0 0 0 Indonesia 258 385 576 682 1,093 1,482 1,602 Korea,Rep.of 435 601 871 758 715 ,116 550 Malaysia 489 423 719 1,668 2,333 4,073 3,608 N geria 167 603 377 1,882 588 712 675 Phil ppines 127 307 936 563 530 544 228 Thailand 263 352 1,105 1,776 2,444 2,014 2,1 16 Turkey 125 is 354 663 684 810 844 Venezuela 16 21 89 213 451 1,916 629 Note Table inducdes data only for DRS reporters. See table A. I for country classifications. a. Projection. b. Most of these countries are also included in the indebted country groups. Source: World Bank, Debtor Report.ng System THE WORLD SANK STATISTIICAL APPENDIX TABLE A. IO EMERGING STOCK MARKETS Market capitalization Value of stock traded Price-earnings ratio (US$ millions) (US$ millions) (percent) Economy I 992Q4 1993Q I I 993Q2 1992Q4 1 993Q I I 993Q2 992Q4 1993Q I I 993Q2 Argentina 8,633 19,102 26,968 3,682 2,835 2,043 38.0 36.8 32.4 Brazil 45,261 59,489 76,023 4,234 6,847 10,791 -24.4 16.1 16.7 Chile 29,644 33,510 34,725 416 600 573 13.0 13.I 15.8 Colombia 5,681 6,571 5,280 101 81 181 27.9 23.7 21.9 Greece 9,489 9,929 9,410 386 527 331 6.9 7.4 8.0 Hungary 562 483 498 4.2 3.9 8.4 .. 5.3 14.1 India 65,119 59,793 59,016 3,804 3,545 3,424 33.7 26.0 27.4 Indonesia 12,038 14,385 17,10 1,084 1,799 1,403 12.2 14.7 7.6 Jamaica 3,227 3,872 3,118 115 158 74 22.0 18.9 14.0 Jordan 3,365 3,788 5,203 440 330 514 4.5 15.2 18.6 Korea, Rep. of 107,488 105,929 118,839 42,759 42,0 1 65,547 21.4 20.6 23.9 Malaysiaa 94,004 100,143 118,829 10,770 11,662 33,800 21.8 22.2 25.6 Mexico 139,061 132,575 129,983 10,185 9,536 9,361 12.3 12.5 12.4 Nigeria 1,221 872 1,199 5 5 2 9.0 9.0 9.8 Pakistan 8,028 7,199 7,078 252 220 285 21.9 18.0 17.7 Peru 2,630 2,713 3,207 155 248 253 Philpp;nes 13,794 16,341 16,61 1 687 1,082 I,061 14.1 17.2 17.0 Poland 222 265 849 34 44 241 3.7 3.6 9.9 Portugal 9,213 9,988 0,443 974 780 1,020 9.0 9.5 13.3 Sri Lanka 1,439 1,343 1,555 20 25 45 12.5 12.3 12.5 Taiwan (China) 101,124 148,488 121,973 27,598 103,633 81,212 16.6 24.6 20.4 Thailand 58,259 58,910 62,162 21,922 14,729 9,365 13.9 14.8 14.4 Turkey 9,931 13,470 22,880 1,335 2,518 4,766 6.9 1 1.9 17.8 Venezuela 7,600 6.229 7,125 321 271 593 15.6 3.9 18.6 Zimbabwe 628 614 667 4 3 3 2.0 3. 3.0 Tota. 747,661 816,001 860,742 131,287 203,493 226,896 .. Not available. a. Data for Malaysian-incorporated companies on y. Source: Intemational Finance Corporation. Emerging Stock Markets Factbook. FINANCIAL FLOWS QUARTERLY STATISTICAL APPENDIX TABLE A.1 I COUNTRY GROUPS East Asia and Pacific Former Sov et Union, Guyana, Oman, Gabon, American Samoa Former Yugoslavia, Haiti, Qatar Gambia, The, Brune Gibraltar Honduras, Saudi Arabia Ghana, Cambod a Greece Jamaica Syrian Arab Republic, Guinea, China, Hungary, Martinique Tunis a, Guinea-Bissau, Fiji, Is e of Man Mexico, United Arab Emirates Kenya, French Polynesia Malta, Netherlands Antilles Yemen, Lesotho, Guam Poland, Nicaragua, Liberia, Indonesia, Portugal, Panama South Asia Madagascar, Kiribati Roman a, Paraguay, Afghanistan Malawi, Korea, D.P.R. of Slovak Republic, Peru' Bangladesh, Mali, Korea, Rep. of, Turkey, Puerto Rico Bhutan, Mauritania' Lao P,D.R., St. Kitts and Nev st Indiae Maurit us' Macao Latin America and St. Luca, Maldives, Mayotte Malaysia the Caribbean St. Vincent, Nepal, Mozambique, Marshall Islands Anrtigua and Barbuda Suriname Pakistan, Namibia Micronesia Argentina, Trinidad and Tobago, Sri Lanka, Niger, Mongol a, Aruba Virgin Islands (Britsh) N gerial Myanmar Barbados Uruguay, Sub-Saharan Africa Reunion New Caledonia Belize, Venezuela, Angola Rwanda, Papua New Guinea, Bolivia, Benin' S3o Tome and Principe, Philippines, Brazil North Africa and Botswanae Senegal, Solomon Islands, Chile, the Middle East Burkina Faso, Seychelles, Thailand' Colombia, Agerial Burundi, Sierra Leone, Tonga, Costa Rica, Bahrain Cameroonr Somalia, Vanuatu Cuba Egypt, Arab Rep. of, Cape Verde, South Africa Viet Nam Dom nical Iran, Islamic Rep. of, Central African Republic, Sudan, Western Samoa, Dominican Republic, Iraq Chad' Swaziland, Ecuador Israel Comoros' Tanzania, Europe and Central Asia E Salvador, Jordan, Congo Togoa A ban a French Guiana Kuwait C6te d lvoire, Uganda, Bulgariae Grenada, Lebanon Djibouti, Zaire, Cyprus Guade oupe Libya Equatorial Guinea, Zambia, Czech Republic Guatemala, Morocco, Ethiopia, Zmbabwel Severely indebted Severely indebted low- Niger Hati Former Soviet Un on middle-income countries' income countries, Nigeria Ind a Gabon Algeria Burundi S5o Tome and Principe Indonesia Guatemala Angola Egypt, Arab Rep. of Sierra Leone Malawi Hungary Argentna Equatorial Guinea Somalia Madves Papua New Guinea Bolivia Ethiopia Sudan Nepal Philippines Brazl, Ghana Tanzania Pakistan Senegal Bulgaria Gu nea-Bissau Uganda Rwanda Tunisia Congo Guyana Za re Sri Lanka Turkey C6te dIlvoire Honduras Zambia Togo Uruguay Ecuador Kenya Yemen Venezuela Jamaica Lao P.D.R. Moderately indebted Jordan Liberia low-income countries. Moderately indebted Mexico Madagascar Bangladesh middle-income countries' Morocco Mali Ben n Cameroon Panama Maurtania Central African Repubic Chile Peru Mozambique Comoros Colombia Poland Myanmar Gambia, The Costa Rica Syrian Arab Republic Nicaragua Guinea Dominican Republic Offshore banking centers Panama, Iran, Is amic Rep, of, Bahamas Singapore Iraq Bahrain Vanuatu' Libya Barbados, Nigeria, Bermuda Oil exporters Oman, Cayman Islands Ageria' Qatar Hong Kong Angola, Saudi Arabia Lebanon, Brunei Trinidad and Tobago Liberia Congo, Un ted Arab Emirates Macao Former Soviet Un on, Venezuela Netherlands Antilles Gabon, ' DRS reporter Note. The Debtor Reporting System (DRS), set up in 951 to mon tor statistics on the external debt of developing countries, s ma ntained by the staff of the Debt and Internatonal F nance D vision of the World Bank's Internationa Economics Department. 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