Sectoral Library, 21987 Vol. 4 No. 1 5-- V. 4Sw ' ,.b. ,_ l_ Developing countries are benefiting from New equities 1 6 increased investor confidence and greater access New equity issues rose sharply in the third quarter, to international capital markets, although with the enormous Telefonica del Peru deal com- month-to-month developments are heavily influ- ing to market. Mutual funds targeted at emerging enced by changes in the international environ- markets have grown rapidly over the past few years. ment. The summer months saw some drop-off in both bond and loan financing by developing Foreign direct investment countries. Nevertheless, bond issuance by devel- and privatization 1 8 oping countries hit a record for the first nine Asian and US firms plan continued large invest- months of the year, despite fears of rising interest ments in Latin America. Privatization efforts are rates in the US, and spreads continued to narrow. strengthening in Brazil, Egypt, and Peru, among Emerging stock markets and prices of secondary other countries. market debt instruments fell in July along with the declines in US stock and bond markets, and Official flows then rose in August and September as US markets firmed. New equity issues also rose with the enor- Multilateral flows 20 mous deal brought to market by Telefonica del Multilateral commitments declined in the third Peru, and privatization efforts continued in a quarter, owing to a drop-off of World Bank loans number of countries. at the beginning of the fiscal year. International lending and Bilateral ODA capital markets and export credits 20 Japan and Norway plan increased ODA commit- Bonds 4 ments, and Japan's Export-Import Bank showed Bond issuances eased during the quarter but increased commitments in the third quarter. The remained at record levels for the first nine US EX-IM Bank approved an Environmental months of the year. Spreads declined, and sec- Credit Initiative with Brazil's Banco Credibanco, ondary market prices ended the quarter at their making it the first international commerical bank highest level since January 1994. to increase support for environmentally beneficial projects in cooperation with the US EX-IM Bank. Commercial bank loans 8 Loan commitments declined slightly in the sec- Debt relief update ond quarter to $21.4 billion. Project finance activity rebounded as a result of increased bor- Official creditors 2 1 rowing from Asian countries. The Paris Club reached agreements with Congo, Peru, and Yemen. Market creditworthiness 12 Developing countries' performance continues to Commercial creditors 22 improve, according to Institutional Investor's semi- There were no agreements in the third quarter annual surNey of country credit ratings. to restructure debt owed to commercial banks. Equity portfolio and foreign Financial brief: East Asian direct investment bond issues on the rise 22 Bonds are becoming the fastest-growing source Emerging stock markets 1 3 of financing in East Asian markets, which have The IFC's investable composite index lost 8% in historically relied on bank and equity finance for the third quarter because of July's sharp drop. investment funds. Why the change in the 1990s? * Financial Flows and the Developing Countries * Contents and summary Statistical appendix Tables on external debt, aggregate long-term resource flows, and foreign d(irect investmentflows are published only as data are updated. New bond issues 25 New loan issues 26 New equity issues 27 9' Bank and trade-related ; nonbank claims 28 Commercial bank claims on developing countries 29 FOR RECONSTP1 ICTION AND DEVELOPMENT Commercial bank claims DEC I Z IZY6 on developing countries, by country of origin 30 SECTORAL LIBRARY INTERNATIONAL BANK Maturities of bank claims on developing countries 34 Funds raised on international capital markets 35 Secondary market debt (bid) prices 36 Emerging stock markets 37 Country groups 38 AVovember 1996 Bonds Sovereign issues from Latin America dominate Developing-country bond issues Latin American borrowers accounted for 56% of decline slightly in the third quarter total bond volume. Sovereign issues increased by Bond activity tends to slow down during the sum- a whopping 65%, to $9.7 billion, while private mer months, and 1996 was no exception. After a sector borrowings fell 53%, to $2.1 billion. Mex- buoyant start the volume of bonds issued by ico topped the bond league table at $8.7 billion, Improved country developing countries tapered off during the followed by Argentina at $1.8 billion and Brazil fundamentals, which quarter to $22.6 billion, slightly below the $23.3 at $928.4 million. The Mexican government boosted investor billion in the previous quarter (table 1). Still, raised $7.7 billion during the quarter, seizing the confidence, and high developing countries raised a record amount window of opportunity created by strong eco- liquidity in the debt during the first nine months of 1996-$65.7 bil- nomic reports-in the second quarter real GDP markets contributed to lion, compared with 1995's record of $57.8 bil- was 7.2% higher than last year's level, and Stan- bond issuances lion-despite considerable volatility in the US dard & Poor's upgraded its debt rating from neg- bond market. ative to stable. Proceeds will be used to repay The increase in bond issuance is mainly some of the loans it received from the Interna- attributed to improved country fundamentals, tional Monetary Fund (IMF) and the US Trea- which boosted investor confidence, and high sury, as well as to buy back some Brady bonds liquidity in the debt markets, a consequence of (recently restructured debt). the record amount of bonds that matured this Also during the quarter United Mexican year. At the same time spreads have continued States issued the largest sovereign Eurobond to fall: the dollar sector saw the smallest decline ever and raised $5.4 billion at a spread of 200 (about 20 basis points), while the deutsche mark basis points over the three-month dollar LIBOR sector saw the largest fall (more than 100 basis with five years to maturity. The issue was rated points). The yen sector landed in between investment grade, a few notches above a (about 40 basis points). sovereign rating, because it is backed by Pemex's oil revenues. Investors included commercial TABLE I Bond issues by type of borrower banks, insurance companies, pension funds, and US$ millions 1996 1996 mutual funds. The government also raised $1 bil- 1 994 1 995 Q2 Q3 lion in the dollar market with a 20 year to matu- All developing countries 50,1 29 57,843 23,254 22,619 rity global bond issue at a spread of 445 basis Privote 2 010 20,489 9 807 5 761 points above comparable US Treasuries. Sub-SaharanAfrca 75 100 0 0 EastAsia and Pacific 8,604 1 1,531 4,668 3,329 In the deutsche mark sector the government South Asia 636 520 200 250 raised $676 million, at a spread of 288 basis Europe and Central Asia 1,598 541 341 46 Lat n America 10,097 7,746 4,539 2,136 points with eight years to maturity. The issue has Mddle East and North Africa 0 50 60 0 a step-up coupon beginning at 8.12% and Sovereign 17, 56 24,253 9,400 3,215 increasing to 10.87% after September 2001. Sub-SaharanAfrca 1,520 496 0 331 EastAsaand Pacific 2,399 569 810 1,760 From the private sector Cemex SA raised $600 South Asia 150 0 150 0 million through two tranches-4 years to matu- Europe and Central Asia 9,1 15 0,204 2,541 978 Latin America 3,572 2,105 5,898 9,719 rity and 10 years to maturity-at spreads of 425 Middle East and North Africa 400 879 0 428 basis points and 587.5 basis points. Some of the Otherpublic 11,963 13,101 4,047 3,643 proceeds will be used to acquire Colombian Sub-Sanaran Afr ca 0 396 140 0 cement producer Cementos Samper. East Asia and Pacific 6,599 8,161 1,860 3,128 South Asia 300 262 20 0 Argentina tapped the deutsche mark, dollar, Europe and Central Asia 1,062 1,501 100 0 and sterling markets for a total of $1.2 billion, as Latin America 4,003 2,731 1,827 465 Middle East and North Africa 0 50 100 50 proposals to reduce the fiscal deficit that were Source: Euromoney Bondware and Wodd Bank. consistent with the IMF program helped boost Financial Flows and the Developing Countries a International lending and capital markets investor confidence. In the dollar market Largest securitized issue emerged Argentina raised $500 million with a three-year from Asia floating rate note at a spread of three-month Asian borrowers, both public and private, tapped LIBOR plus 270 basis points, compared with a the market for $8.5 billion, of which $3.6 billion five-year issue at a spread of 427 basis points in went to Korean entities (with the banking sector February. In the deutsche mark sector accounting for 83%). The Korea Development Argentina continued to extend the maturity of Bank launched four bond issues in the yen sec- its issues and raised $507.5 million through two tor for $634 million and made a $115.9 million The two issues by tranches, at 7 years and 20 years to mlaturity. debut in the Australian dollar market with a Zhuhai Highway, which Marking the eleventh currency sector in which three year to maturity note at a spread of 28 basis raised $200 million, it has raised funds, Argentina made its debut in points. The Korean Export-Import Bank tapped marked the first bond the sterling sector for $154.5 million with a five the US dollar market for $500 million at a spread offerings from China year to maturity note at a spread of 390 basis of 44 basis points for five years. The government issued without a points. Issues from the private sector included a announced that in 1998 foreigners will be guarantee from a $100 million issue by Banco Hipotecario allowed to invest in unsecured convertible bonds sovereign or state- Nacional and an $85 million issue by Compania issued by large domestic business, but full open- level entity de Transporte de Energia. ing of the domestic bond market will wait until Brazilian entities raised $928.4 million, of the gap between Korean and overseas interest which 40% went to the banking sector. Banko rates narrows to 2% from 6-7% currently. Thai Bradesco and Unibanco raised $100 million each, entities raised $1.4 billion, of which 77% went to Unibanco with a three year to maturity note and a the banking sector. The largest securitization spread of 290 basis points (compared with a simi- during the quarter from an Asian issuer came to lar issue earlier this year at a spread of 370 basis the market when Thai Car Ltd. launched a $250 points). Companhia Brasilera de Projetos e Obras, million, 5.5 year to maturity floating rate note at a private construction company, tapped the a 22 basis point spread over three-month LIBOR. escudo market for $48 million, with an eight year The issue was backed by auto-lease receivables to maturity bond at a spread of 470 basis points and carried an AAA rating by Moody's and Stan- above six-month LIBOR. The issue is the third dard & Poor's. European banks bought most of made this year in the escudo market by a Brazilian the issue. entity. Comrtel Brasileira, a private telecommuni- Chinese entities raised $1.2 billion, with the cations company, issued a $310 million eight-year government tapping the dollar market for $300 bond, the largest issue by a Brazilian firm. million at a spread of 110 basis points for 10 years. With renewed confidenice in the economy, the The two issues by Zhuhai Highway, which raised government of Venezuela raised $437 million in $200 million, marked the first bond offerings from the deutsche mark sector at a spread of 440 basis China issued without a guarantee from a sovereign points for seven years, compared with last year's or state-level entity. Bond issuance by the Philip- three-year issue at a spread of 507 basis points. pines reached $1.5 billion during the quarter, of Basco Ganadero, a Panamanian private bank, which $1.1 billion went to the government. The raised $75 million at a spread of 385 basis points. government launched two debut samurai issues The $125 million issue by Instituto de Fomento for $369 million, which were rated investment Industrial, a Colombian public banking entity, grade by ajapanese rating agency. The 5.5 year to enjoyed a narrower spread (185 basis points) than maturity issue carried a spread of 159 basis points, most other Latin American issues. Chilean entities while the seven-year issue carried a spread of 200 continue to borrow at very favorable terms-Com- basis points. The government followed in Mexico's pania de Telecommunicaciones de Chile raised footsteps, issuing an uncollaterized 20-year fixed- $200 million at a spread of just 83 basis points above rate dollar eurobond for $690 million. Most of the comparable securities, with five years to maturity. proceeds went to buy back Bradys. Demand was November 1996 International lending and capital markets strong, and the spread at launch was 225 basis million at a favorable spread of 58 basis points with points above US Treasuries. five years to maturity. Poland launched its first Spreads on Philippine eurobonds have nar- deutsche mark issue for $164 million at a spread of rowed to 150-250 basis points, compared with 65 basis points. Lithuania raised $50 million, and 300-400 basis points during the Mexican peso cri- a private brewery from the Czech Republic raised sis, because of strong economic fundamentals, a $46 million at a 185 basis point spread with five scarcity of Philippine bonds, and strong demand by years to maturity. In the deutsche mark sector the Slovenia launched its Asian investors for local securities. Indonesia raised Republic of Turkey raised $338 million with four first issue, which raised $568 million, of which 70% went to the govern- years to maturity at a spread of 304 basis points and $325 million at a ment. The Philippines had been absent from the $101 million at a spread of 283 basis points. favorable spread of 58 market for more than 10 years and emerged with a Three issues came from the Middle East and basis points with five $400 million 10-year issue at 100 basis points. There North Africa, totaling $478 million. The govern- years to maturity were two issues from India-Reliance Industries, a ment of Morocco tapped international markets private textiles company, raised $100 million with a for the first time and raised $290 million in the 50-year maturity and a spread of 350 basis points, French franc sector. The issue carried a spread of and SCICI, a private transport and shipping com- 48 basis points and was guaranteed by the French pany, raised $150 million with a five year to matu- government. The Central Bank of Tunisia raised rity note and a spread of 125 basis points. $137 million in the yen sector, the fifth time it has tapped that market. Issues from Lebanon con- More Eastern European and North tinue to trickle in-Byblos Bank, a public entity, African countries tap the market raised $50 million at a spread of 285 basis points Eastern European and Central Asian borrowers with three years to maturity. The Republic of tapped the market for $1 billion. The Republic of South Africa provided the only issue to emerge Slovenia launched its first issue, wvhich raised $325 from Sub-Saharan Africa, for $331 million. FGURF I Bond issues from developing F GURE 2 Bond issues from developing countries, by maturity countries, by type _US$ billions US$ billions Over 15 years U Floating U 11-15 years C Convertible 6-10 years E Fixed rate S 1-5 years a 23.3 22.6 19.8 23.2 19.8 57.8 1996QI 1996Q2 1996Q3 1996QI i 996Q2 1 996Q3 Source: Euromoney Bondware and World Bank. Source: Euromoney Bondware and World Bank. Financial Flows and the Developing Countries * International lending and capital markets Share of short-term and floating- The volume of Samurai bonds-yen- rate notes increases denominated foreign issues launched in Japan- The share of short-term paper rose to 58% of has increased, driven by deregulation that has total volume from 50% the previous quarter opened the market to issuers of less than invest- (figure 1), aided by the mammoth $5.4 billion ment grade. The Japanese market also has expe- sovereign issue out of Mexico and Argentina's rienced growth in dual currency bond issues (that $500 million bond. The sector accounted for is, coupon payments made in yen but redeemed 60% of the number of issues launched. Develop- in a foreign currency, mainly dollars). Retail ing countries are also reestablishing their pres- demand for these securities has been strong ence on the long end of the market as despite the exchange rate risk, although institu- fundamentals continue to improve. Issues with tional investors have been less enthusiastic, per- maturity of more than 10 years increased to 23% haps because of their losses in US Treasury' of total volume, compared with 13% in the sec- securities several years ago. Developing countries ond quarter. Both Mexico ($1 billion) and continued to diversify their currency borrowing Argentina ($253 million) tapped the 20-year sec- base-Argentina raised $155 million in the ster- tor, as did Thai Farmers Bank ($200 million), a ling sector, a Brazilian company tapped the private bank, while Reliance Industries ($100 escudo market, and Korean entities tapped the FGURE 3 million), a private Indian company, issued a 50 Australian dollar and Swiss franc (SFR) sectors. Currency composition of bond year to maturity bond. The share of issues with issues, 1 996Q3 6-10 years to maturity dropped to 20% of total Secondary market prices recover volume, compared with 36% the previous quar- from decline in July East and South Asia ($7.7 all1 on) ter, with issues mainly out of China and the Prices of secondary-market instruments fell in Philippines. July and then rose in August and September, Yen DM Other ending at their highest point sinceJanuary 1994 17% - Developing-country issuers continue (figure 5). Prices dropped in July in response to SFR to expand funding sources high growth and an unprecedented fall in 1. Developing countries are taking advantage of the unemployment in the US economy, which ana- dollar market's depth by tapping it more often lysts expected would be accompanied by higher 68% Lai merica and for larger deals. In addition, demand by US inflation and interest rates. Emerging-market Latin Aor) investors increased, as confidence rose over the bonds and debt prices plunged, along with the Other course of the year and the investor base for devel- prices of US Treasury bonds. However, the Fed- DM 3% oping-country paper continued to expand. The eral Reserve's decision in early August to leave 13 %i dollar sector's share continued its upward trend Yen and accounted for 71% of total volume (figure FIGUR -4 Sectoral composition of 3). Latin issuers raised $9.7 billion in the dollar developing-country bond issues, US$ sector, of which $6.4 billion went to the govern- 1 996Q3 79% ment of Mexico. Asian issuers also favored the dollar market, accounting for more than two- Manufacturing Europe and Central Asia Bankngl 9% Energy/telecom/ ($ 1.0 billion) thirds of the funds raised by the region. finance 25% utilities 4% US$ Developing countries also continued to tap -Other 37% the German market, with a recent cut in interest Mi/oi 2% rates increasing retail investors' appetite for high- yielding paper. Issues in the deutsche mark sec- Goverment tor accounted for 12% of total volume, the same 58% DM as in the second quarter. The yen sector has been 63% losing ground and accounted for 12% of total vol- Note: "Other" includes utilties, agriculture, construction, transport. and other services. Source: Euromoney Bondware and ume, compared with 23% in the previous quarter. Source Euromoney Bondware and Word Bank. World Bank. November 1996 International lending and capital markets 0 interest rates unchanged heralded an upward increasing numbers of US institutions prepared trend in bond prices. to commit long-term money to emerging mar- Low interest rates in the US and Europe and kets. Confidence in the Mexican economy con- increased creditworthiness of Latin American tinues to grow, and prices of Mexican Bradys and Eastern European economies also have and the $6 billion in eurobonds recently con- encouraged a shift in investor attitudes, with verted from Bradys were high. Prices of Panama's Bradys were higher than expected. Venezuelan issues continue to benefit from FIGURE 5 Secondary market price index, January 1993- improvements in economic policy and rising oil September 1996 prices. Argentine Bradys also rose, with increased confidence in the government's eco- nomic package. Russian eurobond Vnesh paper 220 .. -- . .. had a spread of 700-800 basis points, far wider than any other eurobond. 200 ------ --------- ------ -----------. - - ------------------ -------- v--- - - A -- - /w>P All debt /\_/ V Meanwhile, the Philippines is set to issue $1.9 l80 - ---------- ------- -------- --------------------- ----------------billion in eurobonds in exchange for Brady bonds originally issued to retire commercial bank debt. These new bonds will be issued in the 1 6 0 -- - -- - .---------------.--- form of 15-year floating-rate notes and 20-year fixed-rate bonds. The bonds will not be backed by collateral (unlike Bradys, which are backed by l 20 t>/ Brady bonds . US Treasury bonds), but bond holders accepting this exchange will receive a higher yield. Analysts believe that other countries may follow this 100 approach, particularly Argentina, Brazil, and Venezuela. Brady bonds are the most widely Source: World Bank. traded and liquid form of emerging-market debt, TABLE 2 Loan issues by type of borrower but in the coming years they likely will be over- US$ millions 1995 1995 1995 996 1996 1996 taken by eurobonds. In Latin America the 1994 1995 Q2 Q3 Q4 Qi Q2 Q3 amount of eurobonds in issue has grown from AD developing countries 72,780 1 2,358 22,275 27,700 41,797 24,249 21,944 21,444 zero in the early 1990s to about $80 billion today. Private 32,110 58,965 9,636 16,133 22,181 14,350 16,006 13,138 Although outstanding eurobonds still amount to Sub-Saharan Afnca 1,022 2,606 883 1,105 267 8 15 2,144 446 EastAsiaand Pacific 20,685 36,337 5,518 11,297 12,134 11,139 10,056 9,596 less than the Brady bond market, which is $124 South Asia 1,857 2,400 468 327 300 643 171 304 billion, thev are rapidly catching up. Europe and Central Asia 1.645 5,344 704 910 3,442 816 1,125 1,089 Latin America 6,434 11,621 1,785 2,385 5,987 938 2,255 1,669 Middle East and North Africa 468 657 278 109 50 0 255 35 Commercial bank loans Sovereign 10,604 7,284 2,512 2,483 1,600 1,123 678 915 Sub-Saharan Africa 28 411 23 3 17 56 40 0 375 Syndicated loan conimitments drop East Asia and Pacific 4,074 1,727 751 378 88 98 542 100 South Asia 283 361 161 0 200 375 0 182 New loan commitments fell 2% from the second Europe and Centra Asia 2,585 1,666 500 737 314 60 136 108 LatinAmerica 585 2,914 1,077 1,050 737 350 0 0 quarter, to $21.4 billion (table 2). For the first Middle East and North Africa 3,048 205 0 0 205 200 0 150 nine months of the year new loans reached $67.6 Other public 30,066 46,109 10,127 9,084 18,016 8,775 5,260 7,390 billion, 4% less than the same period in 1995. Sub-Saharan Africa 311 2,649 232 1,317 940 440 185 349 Uncertainty about US interest rates led investors EastAsiaandPacific 14,568 19,634 3,190 3,319 10,446 3,024 1,819 2,310 South Asia 2,411 3,339 932 553 634 968 1,082 720 to favor short-term paper, causing the share of Europe and Central Asia 6,692 6,759 1,225 2,272 2,215 2,845 994 2,374 short-term loans to rise to 29%, up from 25% in Latin America 4,838 5,660 751 1568 2,802 937 1,079 1,627 Middle East and North Africa 1,246 8,067 3,796 55 979 561 100 I 0 the previous quarter. The share of loans with Source: Euromoney Loanware and Word Bank. more than six years to maturity dropped to 19% a Financial Flows and the Developing Countries International lending and capital markets] from 25% in the second quarter (figure 6). An ters of 1995. Lending commitments to Sub-Saha- overwhelming majority (90%) of new loans were ran African entities fell to $1.2 billion, from $2.3 denominiated in dollars, with yen and deutsche billion the previous quarter. Loan commitments mark loans each accounting for 2% of new loans to Middle Eastern and North African countries (figure 7). In an effort to expand their investor were only $195 million. base, developing countries are continuing to Korean and Chinese entities continue to tap venture into other currencies (Swiss franc, ECU, loan markets at more favorable terms than other sterling), which account for 6% of loans. Asian borrowers. Korean shipping and leasing Korean and Chinese Asia once again took the lion's share of bank companies were most active in the market. The entities continue to tap commitments, raising $13.2 billion. Of this, $4.2 largest loans went to Korean Airlines ($150 mil- loan markets at more billion went to Indonesia, $2.8 billion to China, lion on a secured basis), Hyundai Motor favorable terms than and $2.4 billion to Korea. Most (75%) loans to Finance, and Samsung Hongkong ($100 million other Asian borrowers Asia were directed to private entities, particularly each). China's Guangdong Nortel Telecomm to the infrastructure and finance sectors. New raised $300 million, with three loans that carried loan commitments to European borrowers a spread of 30-100 basis points over LIBOR. reached $3.6 billion, of which $2.4 billion went China Northern Airlines also borrowed $300 mil- to public entities, mainly banks, and $1.1 billion lion, with three loans at narrow spreads-35-85 to the private sector. Loan commitments to Latin basis points over LIBOR and 10 years to maturity. American countries reached $3.3 billion, slightly Indonesian companies raised a record amount less than the previous quarter. Improved investor offunds during the quarter, although most trans- confidence in Latin American paper led several actions carried guarantees. For example, the util- governments to tap the bond market for a record ity company PT Jawa Power raised $972 million amount of funds this year and to stay out of the for a coal-fired power station with a four year to loan market. As a result loan commitments to the maturity loan and two tranches with 15 years to region's governments totaled $350 million dur- maturity that carried a political risk cover guar- ing the first three quarters of 1996, far below the antee extended by US EX-IM Bank and Hermes. $2.2 billion received during the first three quar- Thai entities raised $1.8 billion. Total Access Communication received an export credit of l(,URF r Syndicated loans to developing $223 million that included a sterling tranche countries, by maturity guaranteed by the UK's Export Credit Guarantee U5$ mrnl!ons Department (ECGD). The Export-Import Bank of India raised $100 Over 10years 111 million at a spread of 60 basis points with 1 12,358 6-1lOyears E 2-5 years two seven-year loans, as did the Industrial O-I years U F. 7L Currency composition of loan issues, 1996Q3 Yen DM Other 2%2% 6% 21 ,944 21,444 l995 l996Q2 1996Q3 90% Source: Euromoney Bondware and Word Bank. Source: Euromoney Bondware and Word Bank. November 1996 International lending and capital markets Development Bank of India with a single seven- $21 million at a spread of 550 basis points for a year loan. India's Industrial Credit and Invest- six-month loan. ment Corp., the country's largest development Borrowing by Latin American private entities fell bank, raised $120 million with a medium-term duringthequarterbutat$1.7billionstillaccounted loan at a margin of 62 basis points. The entity is for half of the region's total volume. Chilean enti- a quasi-private bank with foreign institutional ties raised the most-1.3 billion, of which $500 mil- investors holding 33% of its equity. Malaysian lion went to Collahuasi Mining Project and $200 Entities from a number entities raised $693 million, of which 79% was in million to Endesa Chile Overseas under a five-year of European countries local currency. Two loans were made to Viet- loan with a spread of 37.5 basis points over LIBOR. tapped the imarket, namese entities: the Vietnam Bank for Invest- Mexico's Comission Federal de Electricidad raised raising as I ttle as ment and Development raised $30 million with $600 million with two one-year loans at a spread of $2 million (Estonian a five-year loan at LIBOR plus 170 basis points 165 basis points over LIBOR The Argentine public entity) and as much as on a secured basis and a put option, and Viet- utility Edesur raised $180 million for two years at a $750 million nam National Coal raised $62 million with a five- spread of 228 basis points over LIBOR, while YPF, (Czech entity) year loan at LIBOR plus 200 basis points. the giant oil company, raised $125 million with a Entities from a number of European countries four-year loan and a two step-up spread-150 basis tapped the market during the quarter to raise as points over LIBOR for the first year and 200 basis little as $2 million (Estonian entity) and as much points over LIBOR thereafter. Argentine entities as $750 million (SPT Telecom, the recently pri- continue to extend the term of loans when only a vatized Czech telecommunications company). few months ago they were tapping the short end of The loan to SPT Telecomm has five years to the market. Petrobras, the Brazilian oil company, maturity and carries a 25 basis point spread. raised $250 million. Hungarian entities raised $751 million, of which Elsewhere, South African entities raised $661 93% went to the banking sector. The National million. Telkom South Africa borrowed $185 mil- Bank of Hungary raised $350 million with a five- lion with a five-vear loan at a tight margin of 60 year loan at a 50 basis point spread over basis points over LIBOR. The loan carried a BB+ LIBOR-the lowest margin ever paid by a Hun- rating with a positive outlook and was the first ever garian entity. The thin spreads enjoyed by Hun- euromarket loan to be assigned a rating by Stan- garian borrowers may be partly attributed to dard & Poor's. Institutional investors favor such Hungary's OECD membership, which gives the ratings and more euroloan ratings are expected in loan a zero risk weighting under Bank for Inter- the future. A Nigerian private bank raised $5 mil- national Settlement (BIS) guidelines. Two lion and Societe Internationale de Cacao et Cafe Slovenian banks raised $120 million at spreads raised $89.4 million in the French franc sector for of 30-42.5 basis points for six years. SC Siderca, a trade finance facility. Ghana's Cocoa Board a Romanian public company, raised $51 million raised $275 million with a one-vear loan at a 50 in the deutsche mark sector, as did Slovnaft, a basis point spread over LIBOR, while the govern- public oil and gas company in the Slovak Repub- ment raised $100 million. Tunisia tapped the mar- lic. Slovenska Elektrane, a Slovakian public util- ket for $150 million with a seven-year loan at a two ity, raised $150 million at a spread of 88 basis step-up spread-50 basis points over LIBOR for points over LIBOR with three years to maturity, the first five years and 60 basis points over LIBOR Although Standard & Poor's placed Turkey on thereafter. Two Lebanese hotels raised $45 mil- its CreditWatch list, Turkish entities raised $895 lion in the medium-term market. million, practically all of it going to the banking sector. Lithuania raised $75 million at a margin Lending for project finance rebounds of 225 basis points for a one-year loan. The loan Syndicated loans to support project-related activi- with the steepest spread was made to Rossiyskiy ties rebounded in the third quarter as a result of Kredit Bank, a Russian public bank, which raised increased borrowings by Asian countries, with Financial Flows and the Developing Countries m International lending and capital markets China, Indonesia, Korea, and Thailand responsi- munications. The International Finance Corpo- ble for almost all the funds raised for the region ration (IFC) raised $125 million for a private (table 3). Total commitments for the first nine Czech electric utility that had agreements in months of 1996 reached $14 billion,just over half place to sell its output to the state and that had the $27 billion committed in 1995. The average contracted for an assured supply of major inputs size of projectfinance borrowings edged up to $87 in the generation process. China's Guangdong million, the highest of any quarter this year, pri- Zhuhai Power Station Co. Ltd. has arranged $1.2 marily because of some large deals from Indone- billion in financing for a power plant project in sia (average size $200 million) and Colombia. the form of $125 million in limited recourse Project finance loans accounted for about one- financing from commercial banks with a 12-year fifth of syndicated loans to developing countries maturity, $670 million in loans from EXIMJapan during the third quarter. Although this represents andJapan's Ministry of Trade and Industry (the a substantial recovery from the second quarter, it first time that EXIMJapan has assumed Chinese remains short of the 25% share in 1995. project financing risk), a Renminbi 504 million The margins paid by Asian borrowers aver- loan to be arranged by a local bank, and the aged about 125 basis points, ranging from 35 to remainder in equity by project sponsors. 275 basis points. At the higher end of the range Indonesia's PT Jawa Power raised $970 mil- were nonguaranteed Pakistani transactions, fol- lion for power plant construction, with political lowed by Thai and Vietnamese deals in the 200 risk coverage from the US EX-IM Bank for a $396 basis points area. Indonesian private borrowers' margins averaged 130 basis points, the same as - PT Financing structure of major for India's public sector. Funding for China aver- project financing deals aged 103 basis points over LIBOR, although the - syndicated, 996Q3 range varied from 65 to 145 basis points. At around 60 basis points Koreans had the lowest I IproJects borrowing costs. A state-owned company backed 24% by South Africa was able to raise funds for oil Financing field development with a margin of 35 basis through loan points, although the loan was for less than three syndication 76% years. Infrastructure borrowings account for half the total volume of project financing so far this year, Source: Furamoney Loanware and Word Bank. with almost 80% going to power and telecom- TABIKE 3 Project finance by region and sector UPE Secured project financing US$ milions 1996 1996 1996 syndications, January-September to date Q2 Q3 1996 Region All developing countries 13,997 3,455 5,512 Third party Sub-Saharan Africa 160 5 75 guarantees East Asia and Pacfic 1 10,352 2,517 4,118 38% Miscellaneous South Asia 11,449 106 525 /0% Europe and Centra] Asia 707 302 249 Latin Amenca and Caribbean 1,174 525 500 Revenue flow M ddle East and North Africa 155 0 45 from the project 9% Sector Charge over Sponsors completion Te ecommunications 1,561 632 703 projectassets cas 3grt Transportat on 427 0 270 Other infrastructure 1 878 578 210 Noninfrastructure 1 7,317 2,140 2.541 Note Miellaneou includesalternativestandbyfnanc ng, equity --- maintenance, negative pledges, and specifit financial covenant clauses. Source. Euromoney Loanware and World Bank. Source: Euromoney Loanware and World Bank. November 1996 International lending and capital markets million, four-year loan; 95% coverage for politi- the parent company. A private corporation from cal risk and certain commercial risks from Her- Thailand raised $205 million for construction mes to cover a $494 million, 15-year loan; and the activities. remainder arranged as a revolving credit. Pak- istan's Uch Power Company raised $340 million Market creditworthiness in four tranches to construct a power project. Sovereign foreign The World Bank provided a political risk guar- Institutional Investor survey sees currency debt antee for a $75 million tranche, and the US EX- continuing improvement Long term ratings, as of IM Bank did the same for a $148 million tranche. Institutional Investor's latest semiannual survey of September 9, 1996 Moody's S&P The IFC provided loans worth $115 million, and country credit ratings continues to show Investment grode project sponsors are providing $160 million in improvements in the market's perception of Chile Baa A-AA* equity for the project. Pakistan's other power developing countries' performance. On a scale China A3 BBS2 Colombia Baa3 BBB-/ project involves Fauji Kabirwala Power Company of zero to 100, with 100 representing countries A+2 Ltd., which raised $65 million for a 12-year with the smallest risk of default, Eastern Cyprus A2 M- i Czech Republic Baa A period; the financing was covered by a pledge Europe's average rating improved 1.5 points to Greece Baa3 BBB-' over the project's assets. 27.6, the largest regional gain in the survey's his- India Baa3 BB+ I Indonesa Baa3 BBB/ Companies in Indonesia and Thailand tory. The largest increases were registered by A+' floated large-scale deals in telecommunications. Croatia (4.6 points), Slovenia (4.0 points), and Korea, Rep. of A M-' Indonesia's PT Pramindo Ikat Nusantara, which Poland (3.8 points). Latin America's rating rose Malays a A Ar! Mr*2 has a 15-year concession to operate, manage, an average of 1.1 points to 29.1, with Peru up 2.8 Malta A2 A+/ and expand the telephone network in the points, Brazil 2.5, and Chile 2.0. The Asia-Pacific Poland Baa3 BBB-/ Sumatera region, raised $450 million in two region increased 0.6 points to 48.9, with the SiovakRepublic Baa3 BBB-/ tranches. Of this, $150 million will support rev- Philippines' rating up 2.4 points. The Middle A*I enue guarantees the company provides to the East region went up 0.5 points to 42.1, with the SouthAfrca Baa3 BB+/ state telecommunications company. The IFC largest increases recorded for Jordan (2.6 BB+5*2 played a major role in arranging the second points), Israel (1.4 points), and Egypt (1.1 Thailand A2 A/AMl tranche and also provided a subordinated loan. points). Africa achieved its highest rating in 13 Tunisia Baa3 n.a. Thailand's Total Access Communications pcl years, increasing to 22.5, a 0.5 point rise over the Below investment grade Argentina B' BB-/ raised $223 million in a seven-year loan that was last survey. Uganda was rated 1.6 points higher BBB*P guaranteed for political and commercial risks by and Benin 1.7 points. Barbados Ba2 n.a. Brazil BI B+2 ECGD and various Finnish agencies. The only Hungary Ba BB+ deals in the roads and water sectors came from Mexico's outlook improves, Egypt Jordan Ba3 B+! BBB-9 China. A public company arranged a $200 mil- requests rating, and Turkey and Mex co Ba2/ BB/ lion loan for three years with a margin of 65 basis Pakistan under review Baa3* BrB+*3 Pakistan B' B+± points above LIBOR, and a private utility corpo- Standard & Poor's (S&P) revised its outlook for Paraguay n.a. BB-/ ration raised $50 million for 4.5 years to finance Mexico from negative to stable in September, Philippines BBBa water treatment projects. reflecting reduced vulnerability to external BBB+5 2 NVoninfrastructure sectors had an average shocks (table 4). According to S&P, adherence Tromnida Ba' BB maturity and loan size about half that of infras- to a strict monetar, and fiscal framework has TrinidadI and Tobago Ba' BB+' tructure. The largest noninfrastructure deal in built credibility, strengthened access to capital Turkey Ba3 B+ the quarter was a commercial loan for $500 mil- markets, and underpinned a gradual export-led Uruguay Ba' BB+/ BBB* lion for Chile's Collahuasi Mining Project. The recovery, with GDP likely to grow about 4% this Venezuela Ba__ total cost of the project is estimated at $1.8 bil- year. With continued commitment to fiscal * The first rat ng applies to foreign currency debt and the second to lion. An Indonesian firm, PT Gadjah Tunggal restraint, Mexico should see its 1997 deficit stay domestic currency debt. Mulia, raised $360 million, technically borrowed below 1% of GDP. Mexico now has a manage- r.a. Not appl cable. -. Stabe outook. through a wholly owned subsidiany registered in able external debt burden, with a maturity struc- 2. Positive outlookw 3. Negatve outlook. the Netherlands that in turn loaned the funds to ture that compares favorably to that of X Financial Flows and the Developing Countries International lending and capital markets governments with similar ratings. Net public Egypt has asked Moody's for a sovereign debt external debt is expected to fall to 80% of export rating. According to officials from the finance earnings this year (from 123% two years ago). ministry, Egypt took this step because Moody's The rating also reflects the ongoing economic was in the process of producing an unsolicited benefits of Mexico's relationship with the US, a rating. There has been considerable speculation market for four-fifths of Mexico's exports and a on what rating will be assigned, with various gov- major source of foreign direct investment and of ernment officials and researchers believing that financial support. Moody's rating will be just below investment InJuly S&P placed Turkey on CreditWatch- grade. Egypt's macroeconomic picture is strong. a signal that a decision on whether to downgrade The country has $18 billion of foreign reserves, the country rating will be made in a few months- and an IMF reform package aiming to boost eco- owing to continuing adverse fiscal trends, rising nomic growth to 8% and increase foreign debt service pressures, and the fragile political sit- reserves to $22 billion is under negotiation. uation. A large portion of local currency debt will Moody's put Pakistan under review on be maturing soon, and it may have to be rolled September 29. The agency is awaiting the results over at the higher interest rates now prevailing. of ongoing discussions between the IMF and Pak- S&P expects that interest payments will absorb istan on reactivating the $600 million standby 58% of this year's revenues (up from 42% last arrangement. Despite strong growth, analysts year), thereby worsening the deficit. Monetary believe that Pakistan's economic situation has policy is constrained by continued money financ- deteriorated over the past couple of years, with ing of the fiscal deficit (inflation is running at particular concern voiced over the growth of the 85%) and the risks presented by the large share underground economy (now thought to be half of foreign currency deposits in the money supply. the size of the official economy) and the absorp- S&P will reevaluate Turkey's CreditWatch status tion of 70% of the budget by defense expendi- within the next few months. tures and debt servicing. * Equity portfolio and foreign direct investment Emerging stock markets (0.4%) and the largest increase on a year-to-date basis (13%). ]Emerging stock markets down in After a rocky start Latin Amer-ican stock markets July, with some recovery in August recovered strongly, and all countries in the region and September except Mexico posted strong gains in September. Most developing-country stock markets dropped Argentina was hit hard in July, and although it sharply inJuly on the heels of the fall in US bond posted a 9% increase in September, it was down and stock prices (see August 1996 issue). 8% for the quarter. Foreign investment accounts Although developing markets gained ground in for 35% of total market capitalization, and the August and September, they generally finished drop in US markets had a negative impact. the quarter below June levels. The IFC's Domestic factors that adversely affected market Investable Composite Index (IFCI) lost about performance include poor corporate earnings 3% during the quarter, although it was up 8% reports, the resignation of Minister of the Econ- since the end of 1995 (figure 10). The IFCI's Asia omy Domingo Cavallo, and the failure to meet index fell 4%, as stock markets in India, Pakistan, IMF budget targets byJune 1996. On the positive and Thailand posted double-digit declines. The side, a credible package to boost tax revenue and IFC index for Europe, the Middle East, and reduce the deficit was introduced by the new Min- Africa dropped 3.5%, while the Latin America ister of the Economy, and the President stated that index posted the smallest decline for the quarter there would be no devaluation of the peso. November 1996 Equity portfolio and foreign direct investment X Brazil has the largest stock market in the tional markets gave further impetus to the region, with market capitalization of $192 billion. advancing Peruvian market, which is up 13% for Brazil's IFC index increased 2% in the third quar- the year. Chile's stock market posted a modest ter, for a 22% rise on a year-to-date basis, based on decline for the quarter (down 4%) and for the strong economic fundamentals. The economy is year (down 5%), as high domestic interest rates expected to grow 3% this year, although problems attracted investors to the fixed-income market. remain, particularly high real interest rates. In Venezuela is the smallest market in the region in July the government eliminated the indexation of terms of market capitalization ($15 billion), but wages to inflation. Foreign investors, which are it has been a star performer so far this year-it allowed to purchase up to 49% of a company's posted a 22% increase for the quarter and 85% common shares and 100% of preferred shares, on a year-to-date basis. Venezuela's success may account for 35% of trading activity and 30% of be attributed to the government's adherence to market capitalization. Market confidence has ben- the economic stabilization plan, which is backed efited from the recent passage of the wireless by the IMF. telecommunications law, which allows foreigners Major Asian stock markets have been posting to hold up to 49% of equity in that previously off- large declines, reeling from difficult political limits sector; from negotiations between pension and economic conditions. Korea is down 10% for funds and regulators on increasing the limits on the quarter and 24% for the year. The market has pension funds' equity investments, which could been affected by corruption scandals involving bring more liquidity to the market; and from the government officials and company executives, as provision of government funds to support mea- well as deteriorating economic fundamentals. To sures to deal with ailing banks, including privati- boost flows to the market, the government raised zation, liquidation, or merger with healthy the ceiling on foreign ownership from 18% to financial institutions. 20% for listed stocks and from 12% to 15% for Although the Mexican market was down 1% state-controlled entities. In addition, a 5% tax for the quarter, it is up 18.5% for the year, cut on the brokerage deposit accounts of indi- thanks to a positive economic outlook. The suc- vidual investors is being implemented. Political cessful issue by Telefonica del Peru on interna- uncertainty over Thailand's ruling party, cou- lpled with sluggish economic performance and IFIGURF 1IFC's Investable Composite Index, by region inadequate export policies, put a damper on the July 1994-September 1996 market, which experienced a double-digit decline for the quarter (13%) and for the year 140 j ------- ---- -- - - --------- ------------ -----I--- - -- ------------- (19%). A loss of foreign investors' confidence July 1994= 100 I pushed the stock market to a three-year low and I JJ ^sv ^brought the baht under heavy pressure. Another 120 ---- -----, ---. factor that affected the market is uncertaintv / ~~~~~~~~~Europe, the Middle East, g annd North Africa over the dismantling of 20 closed-end Thai P%i s / or. z j -< funds-75% owned by foreigners-that are due 100 ----------- to expire during the first half of 1997. There is 80 ------------ ~ ~~--- ----- --------- - -- ---------------------- ^ ----------- -------ma k t w ihco l an sm u h a Latin America $633 million from the stock market. Mutual \ . ~~~~~~~~~~Latin Amernca funds have asked the Stock Exchange of Thai- 60 land to change the status of these funds to open- end, to encourage foreigners to retain their Source. Internat onal Finance Corporation. holdings in the market. E FinancialFlows and the Developing Countries Equity portfolio and foreign direct investment Political unrest and a bleak economic out- the economy is expected to grow 3.5% this year, look also had a negative impact on Pakistan's investor confidence waned as the rand depreci- market, which suffered a 24% decline in the ated during the year and government officials third quarter (the largest decline for a country failed to send clear policy signals. Other markets stock market index in the quarter) and is down in the group have performed very well this year. 10% since the end of 1995. Despite two recent Zimbabwe, the smallest market in the group rupee devaluations (on top of last year's 13% (market capitalization of $2.6 billion), increased devaluation), the trade deficit has continued to 85%, Poland is up 83%, and Hungary is up 77%. Egypt's inclusion in the rise, reaching $3.1 billion at the end of June Even Turkey managed to post a 36% increase this IFC index may increase (compared with $2.26 billion in 1995). year and the Czech Republic, 21%. foreign inflows into India's stock market dropped 19% for the the market quarter but managed to gain 4% since the begin- The IFC to track 17 additional ning of the year. Foreign investors were skeptical emerging stock markets of the new budget plan's ability to tackle the At the end of September the IFC released new country's economic woes, while domestic global indexes for a number of newly emerging investors stayed on the sidelines because of the stock markets, including Egypt, Morocco, and recently imposed stringent margin require- Russia, as well as other smaller and more illiquid ments. Net purchases by foreigners in Indian markets-Bangladesh, Botswana, Bulgaria, C6te shares totaled $27.7 million in August, com- d'Ivoire, Ecuador, Ghana, Jamaica, Kenya, pared with $302.4 million inJuly and $2.4 billion Lithuania, Mauritius, Slovak Republic, Slovenia, for the first seven months of the year. In an effort Tunisia, and Trinidad and Tobago. Beginning in to boost market participation, several tax October the markets of Egypt, Morocco, and reforms were announced in September, includ- Russia will be incorporated in the IFC's Global ing the elimination of the capital gains tax on Composite Index. These markets posted 12%,. investments in certain securities and on mutual 32%, and 125% increases since December. fund investments held for three years or more. Egypt is expected to carry a 0.5% weight in New takeover rules were introduced to make the the IFC's Global Composite Index. Egypt's inclu- process more transparent and less complex. sion in the index may increase foreign inflows Thus bidders can now acquire 100%, rather than into the market, because foreign funds that track 80%, of a company and must deposit 10% of the the IFC's index may allocate a higher percentage bid value in an escrow account. of their portfolio to Egyptian equities. The Egyp- The Philippine market is down 8% for the tian market has grown fast this year-the value of quarter but up 17% for the vear. Foreign involve- traded shares doubled, and market capitaliza- ment in the market is high, accounting for 38% tion is up 22% (though it remains only 8% of of market capitalization and 50% of trading activ- GDP). Foreign presence has increased signifi- ity. Fear of higher US and domestic interest rates cantly and now accounts for about 31 % of the kept some investors out of the market despite value of shares traded, a huge leap from 2% in positive reports on economic growth and good 1995. Custody arrangements are sufficient, but corporate profits. China (down 0.2%) and settlement is cumbersome. Settlement is sup- Indonesia (down 3%) posted the smallest posed to take trading plus three days, but delays decline of Asian markets for the quarter. still occur. A new automated central clearing and Malaysia was the only market to advance in the depository system was to become operational on quarter, albeit at a slow pace (1%), but was up October 1, removing the last major impediment 18% on a year-to-date basis. to market growth. The 2% capital gains tax was The IFC index for Europe, the Middle East, and abolished in May, and there is no withholding Africa fell 1.5% for the year, mainly because of tax. The market is thin, and only 50 of the 604 the 13% drop in South Africa's market. Although companies currently listed are traded regularly. NVovember 1996 X Equity portfolio and foreign direct investment X The Capital Markets Authority plans to force 42% of issues (by volume) during the quarter, companies to de-list if there is no trading activity nearly double the 22% of the previous quarter. or if they fail to disclose information. The major issue out of Latin America was the Elsewhere, Estonia's stock market (not yet sale of 23.6% of the government's share of Tele- covered by the IFC) was up more than 100% fonica del Peru, one of the largest-ever new equi- from December to August. Market capitalization ties issues from Latin America. The issue price of $250 million and daily turnover of per ADRwas $20.5 and rose more than 10% right The July downturn in $350,000-$l million are relatively small. Finan- after issue. Mexican issuers are beginning to US markets led to a cial companies dominate the exchange. For come back to the market following the peso cri- withdrawal and example, Hansa Bank, the largest bank in the sis, and Mexican entities raised $195.4 million postponement of US region, has market capitalization of $121 mil- during the quarter. DESC-Sociedad de Fomento equity issues, leaving a lion-about half the market's total. Industrial, the fourth-largest industrial group in window of opportunity Mexico in terms of sales, raised $75.4 million. for developing-county New equities The ADR shares were listed on the New York issues Stock Exchange (NYSE) for $19 each. Grupo New issues up sharply as privatization Radio Centro SA de CV, a media group, raised deal comes to market $27.7 million on the NYSE using ADRs. The issue The July downturn in US markets led to a with- was bought mainly by US investors, with Euro- drawal and postponement of US equity issues, pean investors accounting for 10-20% and Mex- leaving a window of opportunity for developing- ican investors 2%. Grupo Casa Autrey SA de CV, county issues. The volume of new equity issues a wholesale consumer products company, raised from developing countries increased 35% in the $48.8 million. Consorcio ARA raised $43.2 mil- third quarter, to $3.3 billion (figure 11). Ameri- lion. Two entities from Brazil issued $185 million can depository receipts (ADRs) and global in equities. depository receipts (GDRs) accounted for 67% A number of issues came to the market from of all placements. A flurry of activity occurred Asia-India, China, Philippines, and the Repub- during the first part of the quarter as Telefonica lic of Korea. Renewed investor confidence fol- del Peru ($1.1 billion) seized the opportunity and came to market with an enormous deal. For the first nine months of the year develop- F G_ RE| International equity issues, by region ing countries raised $8.5 billion, about 15% more US$ millions than in the same period in 1995. Analysts expect Other U market activity to pick up during the last quarter 12,155 Latin America [2 of the year, with a number of deals expected from Asia [2 India, Lebanon, Russia, and Venezuela, among others. It is uncertain, however, whether activity will be as robust as last year's fourth quarter, when developing countries raised $4.8 billion, because a number of new industrial-country issues will be competing for investors' money. Most new issues were from Latin America ($1.5 3,294 billion) and Asia (also $1.5 billion, down from 2,435 $1.8 billion the previous quarter). In addition, two I 1 1 Eastern European countries (Hungary and Lithuania) raised $177 million, and one country 1995 1996Q2 1996Q3 in the Middle East and North Africa, Egypt, raised Note Equity figures nclude domestic tranches. $119 million. Privatization activity accounted for Source: Euromoney Bonoware and World Bank. m Financial Flows and the Developing Countries E Equity portfolio and foreign direct investment lowing the elections led Indian entities to tap the an offer price of $11.87 per GDR. Strong market for $500 million using GDRs. The first demand for the issue, to be listed on the London issue to emerge after the elections was from Stock Exchange, came from US and UK Industrial Credit & Investment Corporation of investors. With this issue Egypt's government will India (ICICI), a development finance institu- reduce its share in the bank from 43% to 23%. tion, which raised $220 million. The issue price was set at $11.50 a share-at a premium to the Mutual funds investing in emerging- underlying domestic price, with a 15% green- market securities have taken off shoe option. It was the largest offering of GDRs Foreign investment in emerging-market securi- by a first-time Indian issuer and the largest ties through mutual funds has increased at a fast placed at a premium. Tata Engineering and pace during the 1990s. In 1993, 561 equity funds Locomotive raised $200 million. UK investors dedicated to investing in emerging markets had (mainly specialist Indian funds) bought about a net asset value of $73 billion. By June 1996, 40% of the issue, Asian investors about 30%, and 1,359 funds had a net asset value of $132 billion. US investors absorbed the balance. Kesoram Retail and institutional investors favor mutual Industries, a cement company, raised $30 mil- funds because they offer portfolio diversification lion and was sold at a 12.5% discount to its under- and lower risk. lying domestic price. Crompton Greaves, India's The number of funds with investments in Rus- largest engineering company, raised $50 million. sian equities has grown over the past two years. Guangdong Kelon Electrical Holdings raised In 1994 there were 9 Russian funds with a net $96.5 million and Qingling Motors $30.8 million asset value of $222 million; by June 1996 there TABLE 6 on Hong Kong's exchange. Changhai Diesel were 22 funds with a net asset value of $1 billion. Developing-country raised $64.3 million through B-shares (reserved The third quarter saw new funds created to invest funds: top discounts and premiums for foreign investors) on the Shenzhen in Russian equities as market capitalization con- Percentage difference bet-een net exchange, with heavy demand from Asian tinued to increase and prices posted a 125% asset value and share pnce investors. Eastern Communications raised $80 increase over the beginning of the year. Shimoda Percentage million through B-shares on the Shanghai recently relaunched the Russia Renaissance difference exchange. Uniwide Holding of the Philippines Fund, created last vear and frozen because of Largest discounts Jupiter Internationa raised $163.4 million on the NYSE (the first political uncertainty. Enskilda Securities, a Green nv, Philippine issue to include a mandatoiy 10% Trust pIC TABLE 5 Developing countries (ordinary shares) -45.23 portion for domestic investors), while Solid best-performing closed-end Jupiter European Inv. Group raised $148.4 million through private equity funds Trust pic (ordinary shares) -44.80 placement. Korea has eased regulations, and Percent Number Average return Shanghai Growth Korean banks are now allowed to seek interna- Market of funds September 1996 Investment Ltd. 42.10 Turkey 3 5.11 Lazard Vietnam tional capital to meet their capital adequacy ratio Indonesia 9 4.18 Fund Ltd. -33.71 requirements. Kookmin Bank was the first bank Argent na 4 3.00 Thai Development to use GDRs for that purpose, raising $300 mil- Latfn Afrca 8 2.59 Capital Fund Ltd, -29.81 LtnAmer ca IS .97 Largest premiums lion. This was Korea's largest GDR issue and was Emerg ng markets 21 1.63 Langer pemEuav wupiter European Iv marketed to US, Asian. and European investors. Chile 5 I .45 Trust plc (zero dividend China 12 1I.32 preferred shares) 43.76 Issues from Europe included a GDR issue from Emerg ng Europe 9 1.21 Henderson Eurotrust Hungary for privatization of Tiszai Vegyi Kombi- Braz 4 0.77 plc (zero dividend Vietnam 5 0.22 preferred shares) 39.27 nat, a chemicals company, for $162.3 million- Phil pp nes Snpattana Fund 21.38 one of the largest issues ever for a Hungarian Republ of Korea 13 - .18 Jupiter International Mexco 3 -1.26 Green Inv. Trust entity. Lithuania's Vilniaus Bankas raised $15 Thai and 31 -4.34 (zero dav dend shares) 17.26 million in that country's first issue ever. The first Czech Republic 3 -4.93 Z-Seven Fund Inc. 12.51 Russ a 1 0 -5.66 global issue by an Egyptian company, Commer- India 13 -8.0 Note: As of September30, 1996. Source Lipper Intematiosal Closed- cial International Bank, raised $119 million with Source Lipper Isternational Closeo-End Funds Sore ce. End tunas Service, November 19965 Equity portfolio and foreign direct investment Swedish investment bank, launched a $50 mil- pipeline between Brazil and Bolivia. Hyundai will lion open-ended fund to invest in Russian equi- invest in mines and power plants in Peru and in ties listed on the Dublin stock exchange. Firebird a $300 million joint venture electrolytic copper Management launched the Firebird New Russia refinery in Chile. LG Electronics will invest $1.1 Fund, an open-ended fund that will invest billion in Brazil over 10 years to build consumer $5-$10 million in Russian equities. The open- electronics and appliance factories. By 2000 Dae- ended Russian Prosperity Fund, which will be woo Electronics plans to invest $500 million in Asian companies are listed on the Dublin Stock Exchange, raised $50 household appliance production in Brazil. Tai- investing in Latin million to invest in highly liquid Russian stocks. wan (China) firms plan to invest in industrial America to service the Elsewhere, the open-ended Citimarkets Latin parks in Brazil and Paraguay, and two large tex- sizable domestic American Equity Fund raised $100 million to tile and battery manufacturing firms plan to market and as an invest in Latin equities, and the closed-end invest $80 million in Mexico. The Mexican gov- export base to reach Schroder Emerging Countries Fund raised $45 ernment reported that Asian firms have invested the US million, of it 54% to be invested in Latin Ameri- $2 billion since 1994, against $10 billion from the can markets. The open-ended Abstrust Indian US. Fund raised $50 million to invest in Indian listed US companies continue to dominate invest- equities, while the private equity fund New Africa ment in the region. Chrysler recently announced Opportunity Fund raised $120 million to invest plans to build a vehicle assembly plant in Brazil, in black-owned South African companies and its third in the region, to capitalize on the coun- other companies in the region. The IFC plans to try's strong demand for vehicles (2 million vehi- establish a $40 million fund to promote invest- cles are sold each year). Archer-Daniels-Midland, ments in small, poor countries, including Alba- a US company, acquired a 22% stake in Gruma, nia, Bosnia, Cambodia, Lao PDR, FYR Mexico's largest corn flour and tortilla concern, Macedonia, and several African nations. for $258 million. Arco, a US oil company, signed a $3.5 billion agreement with Corpoven, Foreign direct investment and Venezuela's state-owned oil company, to develop privatization an extra-heavy crude oil field. The investment marks Arco's return to Venezuela after a 20-year Asian, US companies boost presence absence following nationalization of the oil in Latin America industry in 1976. Colombia has attracted a notice- Asian companies are investing in Latin America, able inflow of capital, particularly from US oil both to service the sizable domestic market and companies. Sixty US companies have invested in as an export base to reach the US (in part to Colombia, accounting for more than half of its avoid quota restrictions). About 25% of the foreign direct investment (FDI). In 1995 FDI employment generated by maquiladoras- reached $1.9 billion, with oil investments increas- assembly plants that have preferential tax and ing 50%, to more than $600 million. Oil invest- tariff treatment-comes from Asian-owned ments in Colombia are expected to rise even firms. Korean firms plan large investments in more this year. Latin America over the next few years, with chae- Elsewhere, Mitsubishi Motors agreed to set up bols taking the lead. Samsung announced that it two joint ventures to produce vehicle engines in will spend $1 billion over the next five years to China. Mitsubishi is the second company to form expand its production of TV sets and other goods a joint venture for auto production in China in Brazil and Mexico. In Brazil Hyundai plans to (Toyota was the first, when it formed ajoint ven- invest $700 million in a car assembly plant, $500 ture in May to produce engines). Chinese and million for a 5% stake in Companhia Vale Do Rio foreign investors are negotiating over the coun- Doce, $300 million in a joint venture with Mato try's first entirely privately owned power station, Grosso do Sul, and $255 million for a gas Laibin B. If agreement is reached, it will open the X Financial Flows and the Developing Countries * Equity portfolio and foreign direct investment door for other such projects and attract funds to ties) and made progress with its efforts to sell the infrastructure sector. The Vietnamese gov- parts of Centromin, the state mining and refin- ernment approved the construction of a $110 ing company created through nationalization in million power plant involving Powerfin (a Bel- the 1970s. In July Antamina, a copper deposit gium concern), a consortium of Thai companies, mine owned by Centromin, was sold. Inmet and and a Thai-Vietnamese joint venture. Rio Algom, both Canadian firms, paid $20 mil- In Uzbekistan the Korean firm Daewoo plans lion in cash and plan to spend $13.5 million for to invest $1.25 billion to upgrade the telecom- a feasibility study. Eventually, up to $2.5 billion In the Middle East and munications network-$450 million to establish may be spent developing the mine, which would North Africa the a digital mobile telephone and paging service make it the country's largest mining investment. Egyptian government and $800 million for a 49% stake in a joint ven- Quincay, an undeveloped gold mine, fetched kicked off its ambitious ture for basic telecommunications service. $202 million in cash from Barrick Gold com- privatization program Turkey's Efes Group announced ajoint venture pany. Dominion Energy, a US company, paid by floating shares in 14 with the municipality of Moscow to build a $140 $228 million for 60% of Egenor, an electricity companies million brewery, which will be the largest and generating company. most modern brewery in Russia. Dutch Shell, In Brazil privatization activity has focused on MW Kellogg (of the US), and Mitsubishi plan to the industrial sector (steel, petrochemicals, and build a $2.4 billion liquefied natural gas plant in fertilizers), but recent announcements indicate Turkey-the fast-growing energy market in that privatization of infrastructure and mining Europe. If approved, it will be the largest foreign companies might be next. After months of delib- investment in the country. eration the Brazilian government has outlined plans for the sale of Companhia Vale do Rio Privatization efforts continue in Doce, the mining giant, which is expected to be several countries Latin America's biggest privatization. The gov- In the Middle East and North Africa the Egyptian ernment plans to sell 40-45% of equity to a spe- government kicked off its ambitious privatiza- cial company in which no shareholder may tion program by floating shares in 14 companies control more than 45%, 10% to employees, and between May and August 1996. The government 17-20% on international equity markets. plans to sell 12 more companies, floating shares Mexico's privatization efforts were stalled by in 9 companies on the stock exchange and sell- political controversy over the sale of secondary ing 3 companies to strategic investors. By 1999 petrochemical plants, but it is pressing ahead in the government hopes to have sold up to 91 other areas, including railroads and natural gas. firms, with a total value of 18 billion Egyptian The government has invited bids for 80% of Fer- liras. During the quarter the government sold rocarril del Noreste, which links Mexico City to about 20% of Commercial International Bank the US border, and the Chihuahua-Pacific line. using GDRs (see the section on new equities). In In Sub-Saharan Africa Tanzania's Parastatal Morocco the government offered shares for 35% Sector Reform Commission announced that 128 of Sonasid, a steel company, for $50 million, state-owned entities will be sold by the end of marking the third most successful transfer since next year. Candidates include the National Steel the privatization program began in 1993. The Corporation, the Bicycle Company, Motor Mart, government plans to sell 60% of its stake in the and others. The Mozambican government sold company to a strategic investor. About 56% of 51% of the Commercial Bank of Mozambique to Somas, an oil storage company, was sold to local a Portuguese company. An additional 20% will companies for $8.9 million. be offered to employees, and 29% will be sold in In Latin America Peru made news during the the near future. South African officials promised quarterwith the successful flotation ofsharesfor to accelerate the country's program to restruc- Telefonica del Peru (see section on new equi- ture and privatize public corporations. The November 1996 Equity portfolio and foreign direct investment government is currently looking for strategic A Canadian firm, Hurricane Hydrocarbons, investors to take a 25-30% stake in Telkom. bought a 90% stake in Kazakstan's Yuzhneftegaz Elsewhere, the Bulgarian privatization agency Production Association for $120 million in cash reported that up to $77 million of state-owned plus a commitment to invest $280 million and to entities have been sold to the private sector so far pay off the company's debt. Vitol, a Dutch con- this year. Most buyers were local, although a Ger- cern, bought Shimkent, an oil refinery, while man concern bought 67% of Avangard, an elec- Exxon and Texaco are expected to bid for the tricity company, for $1.7 million. Aktyubemunaigaz oil production association. Multilateral flows $105 million on IDA terms for a Poverty Allevia- tion Microfinance Project that will help more than World Bank allocates income to IDA 100 nongovernmental organizations to expand In its fiscal 1997 budget the Executive Board of microlending to an estimated 1.2 million poor the World Bank allocated $600 million to the and mostly female borrowers. The goal of this pro- International Development Association (IDA), its ject is to bring about a fundamental shift in lend- concessionary lending arm. This amount was ing practices, from a mostly grant-based more than double last year's figure of $250 mil- microfinance system to a loan-based system. The lion. Although 79 countries wvith per capita World Bank also approved a $28 million credit incomes of $865 or less are eligible to borrow from and a $20 million grant for an ecodevelopment IDA, the largest share of lending goes to countries project designed to conserve biodiversity in seven with per capita incomes below $450. globally significant and protected areas of India. This project will help preserve the 10% of India's Multilateral commitments down in plant species and more than 21% of its mammal third quarter species that have been declared endangered. New lending commitments from multilateral Commitments by almost all other agencies agencies fell to $7.8 billion in the third quarter were higher than in the second quarter. The from $12.8 billion in the second quarter (table 7). Asian Development Bank approved $1.2 billion The World Bank's $2.6 billion in commitments in loans and technical assistance, an increase of accounted for just 33% of the total (down from about 50%. The African Development Bank's 78% the second quarter). The second quarter was commitments almost doubled this quarter, to above the average for the year, however, reflecting $24 million. More than 80% of the loans were for efforts to approve credits before the Bank's fiscal infrastructure development and went to Benin, year ended on June 30. Bangladesh borrowed Eritrea, Ghana, Mauritania, and Uganda. The Inter-American Development Bank has been TAsE. 7 Multilateral commitments to developing countries increasing its lending in 1996. During the third US$ millions, in colendoryeor 1996 1996 quarter lending increased to $1.1 billion from 1995 Q2 Q3 $580 million in the second quarter. Tota 52,982 12,886 7,817 Afrcan Development Bank 296 0 24 Bilateral ODA and Asian Development Bank 5,504 73 1,157 cei International Bank for Reconstruction export credItS and Development 22, 43 9,991 2,634 European Bank for Reconstruction and Deve opment 1 799 348 I01 Japan, Norway plan to increase Inter-American Development Bank 7,303 580 1,131 ODA commitments International Monetary Fund 1 5,936 1,304 2,872 Official development assistance (ODA) lending a. Fgure available for July only. Source: Multilateral lending institutions. by industrial countries has been falling because M FinancialFlows and the Developing Countries m ~~~~~~~~~~~~~~~~~~~~~~~~~~~~Official flows of budget constraints. Japan, however, contin- cost for an oil field project. The remaining $90 ues to maintain its assistance program. Its ODA million will be provided by a syndicate of 14 pri- commitments in 1995 were 9.3% higher than in vate financial institutions. Crude oil from this 1994. The government plans to continue this field will be exported primarily to US and Euro- trend. It will emphasize human resource issues pean markets. EXIMJapan also signed an agree- by lending to projects that target poverty, infant ment to lend 5 billion yen to the Hungarian mortality, and low literacy and that expand Export-Import Bank, for an export credit facil- export markets. ity for trade between Hungary and countries of Meanwhile, Norway increased foreign aid the former Soviet Union. 7.4% for 1995/96. The country expects to main- tain this growth for the next few years. About US EX-IM Bank approves Latin 47% of this vear's aid went to Africa. Next year, American projects Norway plans to raise Africa's allocation to 50%. The US Export-Import Bank approved a $10 mil- lion Environmental Credit Initiative in partnership EXIMJapan increases commitments with Brazil's Banco Credibanco that will finance Total commitments by the Export-Import Bank environmentally beneficial US exports to Brazil. ofJapan for the third quarter reached 551.3 bil- Banco Credibanco is the first international com- lion yen, up more than 70% from the second mercial bank to increase support for environmen- quarter. EXIM Japan made a 1.5 billion yen tally beneficial projects in cooperation with the US loan to El Salvador and guaranteed a 650 mil- EX-IM Bank through such an arrangement. US EX- lion yen loan facility provided by the Industrial IMBankalsoauthorizedprojectfinancingof$391.4 Bank of Japan to modernize hydroelectric million to Trinidad and Tobago to build and oper- power plants in the Lempa River basin. This is ate a natural gas liquefaction plant and $228.7 mil- EXIM Japan's first loan to El Salvador not tied lion to Argentina, to create refining and transport to the procurement of goods and services from facilities for a copper and gold mine in Catamarca Japan. EXIM Japan also provided an untied province. The project would make this the largest loan to Colombia for $210 million, 70% of the gold mine in South America. X _ g X X g m 9 ,, , , , X- Official creditors TABLE 8 Paris Club rescheduling agreements, January-July 1996 US$ mrln/ons Paris C.ub signs tlree agreements in . un~ Date Consolidated Cut-off Consolidation Paris Club SigllS three agreements in Country of agreement amount date period through Terms third quarter Zambia 27 Feb96 566 l Jan 83 31 Dec 98 Naples During the third quarter the Paris Club agreed Honduras 29 Feb 96 112a I Jun 90 31 Jan 97 Naplesb Serra Leone 25Apr96 39 1Jul83 31 Dec97 Naples on the restructuring of debt owed by Congo, Russia 15 Apr96 40,200 [Jan 91 stock Graduated Peru, and Yemen (table 8). Congo received a payments Naples flow rescheduling (67% reduction) of Ghana' 29 Mar96 - I Jan 83 d Graduated payments maturities falling due during the next three Mali 20 May96 33 l Jan 88 stock Naples Guyana 23 May 96 793 3 i Dec 88 stock Naples years. The restructuring includes a portion of Burkina Faso 20 Jun 96 - 30 Jun 89 stock Naples the debt service due on previously rescheduled Chadc 20 Jun 96 Jan 91 3 1 Dec 97 Naples . ~~~~~~~~~~~~~Conga 6Ju 96 lJan 86 20Jun 99 Naples debt. Creditors also agreed on a three-year Ceru 2Ju 96 - jan 83 ta e Peru 20Ju 96 - l Jan 83 stock e schedule for Congo to clear its arrears on post Yemen 24 Sept 96 - I Jan 93 30 Jun 97 Naples cut-off debt. Yemen received a Naples flow - Not avai able. a. Includes a sia-month extension in the conso idat on period. rescheduling covering September 1996 to b. 50% reduction on maturities. c. Terms of reference of the agreement. September 1997. For both Congo and Yemen d. Includes only arrears as of July i, 1995. e. Repayment prof les tai ored to maintain a certain amount of debt serv ce. some creditors chose the long maturities Source: World Bank. November 1996 Debt relief update 0 option, under which eligible debt is resched- ment was that principal payments would be uled on nonconcessional terms but with an accelerated if real GDP growth exceeds a certain extended repayment period. Creditors agreed range. to Peru's request that-in addition to the usual three-year rescheduling-they reprofile pay- Commercial creditors ments due after 1999 to avoid a hump in Peru's There were no agreements in the third quarter debt service. An innovative feature of the agree- to restructure debt owed to commercial banks. East Asian bond issues a A shift in the industrial structure of many on the rise economies from predominantly labor-inten- A recent paper byJun and Ng (forthcoming) ana- sive manufacturing to capital-intensive indus- lyzes the increasingly important role of bonds tries that require long-term debt financing issued by East Asian developing economies.' While * Risk-based capital adequacy requirements insti- Asia's newly industrializing economies have histor- tuted by the Bank for International Settlements ically turned to bank and equity finance for invest- (BIS), which have strained the banking system's ment funds, bonds are becoming the ability to meet long-term financing needs fastest-growing source of financing in the 1990s. * Increasing demand for long-term, fixed- The new trend of increased reliance on bond income investment vehicles from new institu- financing has been stimulated by a confluence of tional investors in the region. four major factors: At the end of 1994 total market capitalization of * The need to mobilize massive amounts of the emerging Asian bond markets amounted to resources to finance investments in infras- $282 billion (22% of GDP). By contrast, total mar- tructure and housing ket capitalization of the stock exchanges came to $670 billion (52% of GDP), while total assets of the ZIGUR 12 International bond issues by East Asian countries banking system stood at $1 trillion (77% of GDP).2 (by currency, 1 99" 95) Relative to the region's equity markets, bond mar- US$ millions kets in East Asia are still small, in part because of pru- dent fiscal policies that limited government debt 35,000 Other * issuance, and in part because of the corporate sec- HK$ [I] tor's heavy reliance on equity markets and bank 30,000 Yen financing. At the same time the development of US$ bond markets has been hampered by tightly regu- 25,000 lated financial markets with extensive government controls on interest rates, lack of adequate regula- 20,000 tory frameworks to protect investors, inadequate institutional infrastructure, and barriers to capital 15,000 flows. In recent years, however, many countries have taken decisive steps to promote the development of 10,000 their bond markets, and as a result corporations are floating growing amounts offixed-income securities 5,000 in international and domestic markets. Characteristics and terms of bond issues. The US 0 Republic Hong dollar and, to a lesser extent, the Japanese yen Chino Indonesia of Korea Molaysia Philippines Thailond Kong Singapore have been the major currency of denomination Source: Euromoney Bondware. for bonds from Asian developing economies, E Financial Flows and the Developing Countries Financial brief reflecting strong economic links within the The spreads on international bond issues gener- Pacific region. Dollar-denominated issues are ally reflect a country's credit rating. In 1994-95 the targeted for the Yankee, eurodollar, and Asia average spreads paid by the Republic of Korea and dollar markets, while yen-denominated issues Malaysiawere the lowest (less than 100 basis points), are targeted for the samurai and euroyen market while those in Indonesia and the Philippines were (figure 12). the highest (more than 250 basis points). The aver- There is significant variation in the instruments age spreads for China and Thailand were in that the East Asian economies have used in their between, just more than 100 basis points. The Bonds are becoming international bond issues. While fixed-rate issues spreads paid by China, Korea, Malaysia, and Thai- the fastest-growing predominate among total bond issues, countries land are the lowest among developing countries source of financing in have changed the relative shares of alternative (figure 13). the 1990s in Asia's instruments over time. With the interest rate uncer- Determinants ofyield spread. Why do EastAsian bor- newly industrializing tainty of 1994-95, East Asian borrowers increased rowers enjoy low spreads? Using data from 32 devel- economies their share of floating-rate issues from about 18% oping countries for 1990-95, including six Asian in 1993 to 34% in 1994 and 41% in 1995. The Asian developing countries (China, Indonesia, Korea, developing economies have been able to obtain Malaysia, Philippines, and Thailand), Jun and Ng longer maturities for their bond issues than have found, after controlling for maturity, that differ- other developing regions. For example, the matu- ences in the yield spread on developing countries' rities obtained by East Asian issuers are double bonds are closely related to a country's external those of Latin American bonds and nearly triple indebtedness, growth in GDP, ratio of international those of issues from Europe and Central Asia. reserves to GDP, and, to some extent, the volatility of US$ bonds Average spread (basis points) 60C 0 Ec-ador 500 0 Boev,a El Indonesia ol Lihai Barbados Braz I l Argent a 0 Tr nidad and Tobago 400 0 Pak stan 0 Slovak rl Lebanon 300 Republc C Mexic 0 Tunkey 0 Phil pp nes 03 Colomb a 200 South Afrc ca 0jmaca Inda Poland Greece El Vereuela 0 Uruguay I00 El Czech Republ,c 0l Thaiand El China E0 Maita 0 Repuboic 0 Malaysa of Korea C 0 5 [0 15 20 Average maturity (years) Source: Euromoney Bondware. November 1996 E Financial brief inflation (included as a proxy for the quality of investors, enable smaller companies that have dif- macroeconomic management). Of particular inter- ficulties in accessing international markets to est is that, controlling for the macroeconomic vari- secure bond financing, impart greater depth and ables, the spreads on Asian bond issues do not differ liquidity to the domestic financial market as a significantly from those on bond issues from other whole, strengthen links between domestic and regions. Thus the low spreads on Asian bonds are global markets, and increase the sophistication of direcdy related to their superior economic funda- domestic markets through the transfer of interme- mentals, compared with many other developing diation technology. countries. In recent years East Asian governments have Future of East Asian bond markets. While the ris- undertaken major regulatory and financial sec- ing trend in international bond issuance by Asian tor reforms that are essential for the develop- developing countries is likely to continue, ment of domestic bond markets. These reforms issuance in domestic markets is also expected to are at an advanced stage in Korea, Malaysia, and grow rapidly, as firms undertake large infrastruc- Thailand but have only just begun in China, ture and capital-intensive projects that require Indonesia, and the Philippines. Further long-term, fixed-rate debt capital. As East Asian reforms in these countries will focus on the governments proceed with plans to privatize state strengthening of market mechanisms by allow- enterprises, they are encouraging these firms to ing for market-determined yields, policy initia- raise funds from domestic markets to finance tives to encourage access by a diversified group their investment programs. On the demand side of international borrowers and investors, and institutional investors (such as pension funds, the establishment of transparent and efficient mutual funds, and insurance companies) are legal and regulatory systems. Some countries emerging in the region on a large scale, creating need to further develop institutional infrastruc- a new market for medium- and long-term debt ture, such as market-based benchmarks, credit- instruments. rating agencies, clearing and settlement International participation in East Asian systems, custody arrangements, and bond insur- domestic bond markets has been limited in the ance agencies, to build robust bond markets. major markets. Although the opening of local fixed-income securities markets could complicate 1. Kwang W. Jun and May Ng, forthcoming, macroeconomic policies in the host country, inter- "Evaluation of Debt Issues from Emerging Mar- national participation in the domestic bond market kets," in The NVew Dynamics of Emerging Markets would have several advantages. It would broaden Investment. Euromoney. the investor base and thus facilitate trading, 2. World Bank, 1995, The Emerging Asian Bond increase the potential for diversification of risk by Market, Washington, D.C. FinancialFlows and the Developing Countries * Statistica appendix Ti- ELE A I New bond issues for 1 996Q3 Bonds greater then US$150 million Total nominol amount (US$ equivalent, Industry Issue Issue Spreod Final Issuer country millions) Issuer Issuer type sector' Currency pnce type at launch coupon Matunty Mexico 5,424.0 United Mexican States Government SG US$ 100.00 Floating 3-month 5 years LIBOR+2.00% Mexco 1,000.0 United Mexican States Government SG US$ 98.95 Fixed 445 11.38 20 years Philippines 690.0 Republ c of the Philippines Government SG US$ Fixed 20 years Mex co 676.4 United Mexican States Government SG DM 101 .30 Fixed 288 8.13 8 years Mex co 644.5 United Mexican States Government SG yen 100.00 Fixed 5.00 6 years Korea, Rep, of 500.0 Export-Import Bank of Korea Pubic BF US$ 101,19 Fixed 44 7.13 5 years Argentina 500,0 Republ c of Argentina Government SG US$ 99.89 Float ng 3-month 3 years LIBOR+2.70% Venezuela 436.7 Republic of Venezuela Government SG DM 101.26 Fixed 440 10.25 7 years Indonesia 400.0 Republic of Indonesia Government SG US$ 99.49 Fixed 100 7.75 10 years Thailand 350.0 Bangkok Bank Public Co. Ltd. Private BF US$ 100.00 Convertible 10 years Turkey 338.2 Republic ofTurkey Government SG DM 101.20 Fixed 304 8.00 4 years South Africa 330.6 Republic of South Africa Government SG DM 1 01.77 Fixed 140 7.00 7 years Sovenia 325.0 Republic of Slovenia Government SG US$ 99.28 Fxed 58 7.00 5 years Mexico 300.0 Cemex SA de CV Private CN US$ 99.85 Fixed 425 10.75 4 years Mexico 300.0 Cemex SA de CV Private CN US$ 100.00 Fixed 587.5 12.75 10 years China 300.0 Peoples Republic of China Government SG US$ 99.42 Fixed I I0 7.75 10 years Morocco | 290.5 K ngdom of Morocco Government SG Ffr 100.00 Fixed 48 6.50 6 years Korea, Rep. of 280.5 Korea Development Bank Public BF yen 100.00 Fixed 6.30 3 years Korea, Rep. of 278.7 Korea Development Bank Public BF yen 99,90 Fixed 2.45 5 years Philippines 277.2 Republic of the Ph lippines Govemment SG yen 100.00 Fixed 5.00 7 years Argentina 253.8 Republic of Argentina Govemment SG DM 101.38 Fixed 9.00 7 years Argentina 253.8 Republic ofArgentina Government SG DM 101.50 Fixed 12.00 20 years Mexico 250.0 Grupo Industrial Durango SA de CV Private FP US$ 100.00 Fixed 592 1 2.63 7 years Thailand 250.0 Tha Cars Ltd. Private AM US$ 100.00 Floating 3-month 5 years 6 months LIBOR+0.22% Thailand 200.0 Thai Farmers Bank Private BF US$ 98.99 Fixed 1 55 8.25 20 years Chile 200.0 Compan a de Telecommunicaciones de Chile Private TC US$ 99.76 Fixed 83 7.63 Thailand 200.0 Govemment Housing Bank Public BF US$ 99.65 Floating 6-month LIBOR 5 years Thailand 200.0 Krung Thai Bank Ltd. Public BF US$ 100.00 Floating 6-month LIBOR 10 years Korea, Rep. of 200.0 Korea Exchange Bank Public BF US$ 100.01 Floating 3-month I year LIBOR+0.225% Korea, Rep. of 200.0 Cho Hung Bank Private BF US$ 100.00 Floating 3-month I year LIBOR+0. 175% Korea, Rep, of 196.3 Korea Exchange Bank Public BF DM 101.47 Fixed 58 5.25 3 years Philippines i 193.0 Piltel International Holdings Corp. Private FC US$ 100.00 Convertible 1.75 10 years China 184.2 Ch na International Trust and Investment Corp. Public IT yen 100.00 Fixed 2.75 5 years Poland 1 63.6 Repub ic of Poland Government SG DM 101.78 Fixed 65 6.13 5 years Argentina 154.7 Repub ic of Argentina Government SG £.stg 99.81 Fixed 390 1 1.50 5 years Philippines 150.0 SM Prime Holdings Inc Private RE US$ 99.26 Fixed 200 8.63 5 years 6 months Indonesia i 150.0 DPSL Finance Co. BV Private FC US$ 100.00 Fixed 262.5 9.12 1 4 years 4 months India 150.0 SCICI Ltd. Private TS US$ 99.94 Fixed 125 8.00 5 years Argentina 150.0 Province of Mendoza Government LA US$ 100.00 Fixed 403 10.00 6 years Korea, Rep, of 150.0 Seoulbank Private BF US$ 99.70 Floating 6-month I0 years LIBOR+0.80% Korea, Rep. of 150.0 Daewoo Corp. Prvate IC US$ 100.00 Floating 6-month 5 years LIBOR+0.55% Korea. Rep. of 150.0 Samsung E ectron cs Co. Ltd. Prvate EC US$ 100.00 Convertible I0 years 3 months a, AM Is automotive, BF is banking-financial services, CB s central bank, CM is chem cals, CN s construction, EC is electronics-electrical, EN is engineering, EU is energy-utility, KC is financial corporate, FD is food and drink, FP is forest products-packaging, FR is financial repackaged, HC is healthcare-pharmaceutcal, IC is industrial-conglomerates, IS is iron-steels, IT s investment trust-company, LA is local authority, MA is manufactur ng, MO is metals and ores, MP is media-publish ng. OG s oil-coal-gas, RC is retailing-consumer goods, RE is real estate, RL is ra lways, RP is rubber-plastics, SG is state authority-government, TB is tobacco, TC s telecommunications, and TX is textiles-c othing, Source: Euromoney Bondware. November 1996 Statistical appendix TABt-E A', New loan issues for 1 996Q3 Loan amorunt greater than US$150 million Total omount Borrower Borrower (US$ equivalent, country Borrower name type Currency millions) Matunty Margina Mexico United Mexican States Government US$ 6,000.0 5 years LIBOR: 200 bp Czech Repub ic SPT Te ecom AS Public US$ 750.0 5 years LIBOR: 25 bp Chile Collahuasi Mining Project Prvate US$ 500.0 Indonesia PTJawa Power Prvate US$ 494.0 15 years LIBOR: 50 bp Indonesia PTJawa Power Prvate US$ 396.0 4 years LIBOR: 138 bp Indonesia PT Gajah Tunggal Nederland BV Prvate US$ 360.0 5 years LIBOR: 97.5 bp Hungary National Bank of Hungary Public US$ 350.0 5 years LIBOR: 50 bp Indonesia PT Pram ndo Ikat Nusantara Prvate US$ 300.0 8 years LIBOR: 188 bp Mexico Cementos Mexicanos SA de CV (Cemex) Prvate US$ 300.0 I year Mexico Comision Federal de Electric dad Public US$ 300.0 I year LIBOR: 165 bp Mexico Comision Federal de Electric dad Public US$ 300.0 I year LCCOMM: 165 Ghana Ghana Cocoa Board (Cocobod) Government US$ 275.0 1 I months LIBOR: 50 bp Brazil Petroleo Brasi eiro SA (PETROBRAS) Public US$ 250.0 I year Indonesia PT Astra Sedaya Finance Private US$ 233.0 3 years SIBOR: 145 bp, 6 months LCCOMM: 100 bp China China National Aviation Corp. (Group) Ltd. Public HK$ 210.1 I year HIBOR: 22 bp, LIBOR: 22 bp Thailand Kinghi I Ltd. Private US$ 205.0 3 years LIBOR: 225 bp Malaysia Perbadanan Kemajuan Neger Selangor(PKNS) MYR' 200.5 China Guangdong Nortel Teecomm. Swtching Equip. Ltd. Private US$ 200.0 5 years LIBOR: 30 bp South Africa ABSA Bank Ltd. Private US$ 200.0 I year LIBOR: 27.50 bp Chile Endesa Chile Overseas Co. Public US$ 200.0 5 years LIBOR: 37.50 bp China China Merchants Intemational Finance Co. Ltd. Public US$ 200.0 5 years LIBOR: 85 bp China Shangha Industrial Investment (Holdings) Co. Ltd. Public US$ 200.0 3 years LIBOR: 65 bp India Indian Oil Corp. Ltd. Public US$ 200.0 6 months LIBOR: 20 bp a. LIBOR is London interbank offered rate; LCCOMM is letter of credit commission: SIBOR is Singapore interbank offered rate: HIBOR is Hong Kong nterbank offered rate. b. Malaysian ringgitt. Source: Euromoney Loanware. TABIE A. New loan issues for 1 996Q2 Loan amount greater than US$150 million Total amount Borrower Borrower (US$ equivalent, country Borrower nome type Currency millions) Maturity Macrgina South Africa Anglo-American Corp. of South Africa Ltd., A.R.H. Ltd. SA Private US$ 1,000.0 5 years LIBOR: 40 bp, LIBOR: 25 bp South Africa Bill ton Finance BV Private US$ 650.0 5 years LIBOR: 55 bp Indonesia Republic of Indonesia Government US$ 500.0 8 years LIBOR: 62.5 bp Indonesia PT Ctra Bhakti Margatama Persada Private IDRI 399.5 12 years Mexico Nacional Financiera SNC (NAFINSA) Public US$ 315.0 I year LCCOMM: 140 bp Thai and Khanom Electricity Generating Co. Ltd. Private US$ 265.0 12 years LIBOR: 60 bp Indonesia PT Citra Mataram Satriamarga Persada Private IDRb 258.6 10 years South Africa Standard Bank of South Africa Ltd. Private US$ 250.0 I year LIBOR: 35 bp Brazil Petroleo Brasileiro SA (PETROBRAS) Public US$ 250.0 year Indonesia PT Kiani Kertas Private US$ 229.5 7 years South Afrca Saud Aramco Mobile Refining (Samref Private US$ 225.0 5 years Brazil Banco Brasileiro de Descontos SA (BRADESCO) Private US$ 200.0 I year Brazil Banco Bradesco SA (Grand Cayman) Private US$ 200.0 I year India Industrial Credit and Investment Corp. of India Private US$ 200.0 5 years LIBOR: 65 bp Turkey Turkiye Garanti Bankasi AS Private US$ 200.0 3 years LIBOR: 200 bp Indonesia PT Grand Paradise Private US$ 180.0 8 years SIBOR: 200 bp Indonesia PT Kiani Kertas Private US$ 80.0 1 0 years Malaysia Amsteel Mills Sdn Bhd Private US$ 80.0 5 years SIBOR: 138 bp Po and Netia Telekom Private US$ 80.0 10 years Hungary Pannon GSM Telecommunications Rt Private JS$ 175.0 5 years Mexico Avance de Telecommunicaciones Latinoamericano Private US$ 165.0 6 months LIBOR: 125 bp Korea, Rep. of Samsung Electronics Co. Ltd. Private US$ 155.0 5 years LIBOR: 40 bp Note: The countries in the borrower country column were pr nted out of order in tab e A.2 in the August 1996 issue. The reprinted tab e shows the correct order. a. LIBOR is London interbank offered rate; LCCOMM s letter of credit commisson; SIBOR is Singapore interbank offered rate; HIBOR is Hong Kong interbank offered rate. b Indones an rupee Source. Euromoney Loanware. E Financial Flows and the Developing Countries * Statistical appendix TA3LE A 3 New equity issues for 1996Q3 |Total nominal Shore omount offer (US$ price equivclent, Share (US$ Issuer country milihons) typea Issuer equivalent) Brazil 73.2 G,X,S Centrais Eetrcasde Santa Catarina SA-CELESC 80.44 39.4 S Centrais Eetrcas de Santa Catarina SA-CELESC 0.82 39.2 I.X Elevadores Atlas SA I .00 33.4 I Elevadores Atlas SA I1.00 Total 185.2 China 80.0 X Eastern Communications Co. Ltd. 6.66 82.1 I,M Guangdong Kelon Electrcal Holdings Co. Ltd. 3.71 14.5 I,M Guangdong Kelon Electrical Holdings Co. Ltd. 3.71 39.7 X Hefei Meiling Co. Ltd. 3.30 64.3 Changhai Diesel 4.97 30.8 X Qinging Motors Co. Ltd. 2.98 Total 31 1.4 Egypt 118.7 V,G,X Commercial International Bank (Egypt) SAE I 1.86 Tota I 18.7 Hungary 149.8 G,I,V,X TiszaiVegyi KombnatRt 8.81 1 2.5 I,V Tiszai Vegyi Komb nat Rt 1,350.00 Tota 162.3 Indonesia 40.9 IX PT Daya Guna Samudera Tbk 1,950.00 42.6 I PT Daya Guna Samudera Tbk 1.950.00 Total 83.4 India 50.0 G,X Crompton Greaves Ltd. 7.56 1 30.0 G,X Kesoram Industres Ltd. 1.60 220.1 G,X Industrial Credit & Investment Corp. of India Ltd. 11.50 200.0 G,X Tata Engineering and Locomotive Co. Ltd. 14.25 Total 500. Korea, Repubi cof 90.0 G,M,X KookmnBank 23.30 120.0 G,M,X Kookm n Bank 23.30 90.0 G,M,X Kookm n Bank 23.30 Total 300.0 Lithuania 15.0 G,X VIlniaus BankasAB 14.25 Total 15.0 Mexico 14.3 A,M,X DESC Sociedad de Fomento Industrial SA de CV 19.00 I 39.9 A,M,X DESC Sociedad de Fomento Industria SA de CV 1 9.00 | 21.3 M DESC Sociedad de Fomento Industria SA de CV 36.29 39.0 A,X Grupo Casa Autrey SA de CV 1 9.50 9.8 Grupo Casa Autrey SA de CV 14.90 25.9 A,X Grupo Radio Centro SA de CV 7.00 1.8 Grupo Radio Centro SA de CV 5.90 12.2 A,X Consorcio ARA, SA de CV 2 1.25 18.3 A,X Consorcio ARA, SA de CV 2.1.25 13.0 Consorcio ARA, SA de CV 16.00 Total 195.4 Peru 229.6 V,A.M,X Telefon ca de Peru 20.50 688.6 V,A.M,X Telefon ca de Peru 20.50 51.1 V,M Telefoncade Peru 5.02 140.9 V,M Telefoncade Peru 4.52 Total 1,110.2 Phil ppines 8 .7 1 Un w de Holdings Inc 4.80 81.7 1 Un wide Holdings Inc 0.18 98 4 Solid Group Inc 5.85 so.1 Solid Group Inc 5.85 Total 31 1.9 Note: Numbers may not sum to tota s shown because of rounding. a. A is American depository, B is bought dea /bock, F is fund, G is global depository, I is inta publ c offer, M is multtranche, V s privatzaton, and X is Crossborder. Source: Euromoney Bondware. Vovember 1996 Statistical appendix Bank and trade-related nonbank claims US$ millions 1995Q4 Trode-reloted Bonk Guaronteed nonbank Country group or country * 991 /992 /993 1994 1995Q2 Totol cioims claims cloims All developing countries j 788,765 826,525 839,916 912,323 1,001,631 1,034,421 853,940 127,877 180,481 EastAsiaand Pacific 173,722 198,924 218,659 271,920 320,376 357,630 319,914 27,723 37,716 Europe and Central Asia 189,401 1 89,423 193,1 13 198,304 224,068 223,455 183,766 34,080 39,689 Latin America and the Caribbean 244,805 257,599 258,058 264,069 267,949 271,309 234,934 30,106 36,375 Middle East and North Africa 100,018 95,751 92,040 95,199 100,662 94,606 59,567 20,967 35,039 South Asia 21,566 25,083 23,265 26,322 28,233 27,976 23,198 6,873 4,778 Sub-SaharanAfrica 59,253 59,745 54,781 56,509 60,343 59,445 32,561 8,128 26,884 Severely indebted middle-income 301,776 304,386 30 757 306,410 312,824 309,767 246,806 36,353 62,961 Algeria 21,805 18,661 18,208 20,833 22,210 21,026 13,778 9,674 7,248 Angola 2,680 3,453 3,167 2,904 2,868 2,865 1,597 559 1,268 Argentina 36,356 39,640 35,671 38,942 41,097 41,748 35,033 3,406 6,715 Bolivia 534 604 691 681 746 734 407 35 327 Brazi / 71,931 74,069 76,872 70,897 74,775 78,166 68,867 3,261 9,299 Bulgaria 8,909 8,067 7,140 3,899 4,06i 3,728 2,892 424 836 Gabon 2,051 1,952 1,828 1,822 1,741 1,755 641 133 1,1 14 Ecuador 4,553 4,198 3,661 3,926 3,538 3,565 2,972 360 593 Jamaica 737 753 717 865 880 920 657 150 263 Jordan 3,297 2,869 2,700 2,575 2,629 2,769 1,587 700 1,182 Mexico 1 72,485 75,687 78,819 85,699 81,895 78,512. 71,091 13,817 7,42 Panama 22,926 22,725 23,955 26,235 26,845 25,626 25,407 164 219 Peru 1 6,143 6,423 5,972 6,357 7,334 7,891 4,61 1 233 3,280 Poland 27,099 25,569 23,734 20,929 21,104 20,824 8,262 1,877 12,562 Syrian Arab Republic 1 1,107 1,034 1,229 1,263 1,366 1,214 564 SI 650 Severely indebted low-income / 54,188 54,634 53,048 52,653 56,546 53,759 30,018 4,979 23,741 Moderately indebted low-income 37,266 39,003 35,387 37,616 40,092 39,784 27,013 8,107 12,771 Moderatelyindebted middle-income 216,913 228,835 225,201 234,246 256,349 258,906 216,034 46,203 42,872 Selected countriesa 38 1,356 410,694 430,990 492,367 544,825 578,481 497,605 74,986 80,876 Chile 9,149 1 1,188 1 1,293 13,674 13,791 15,687 14,396 829 1,291 China 41,381 48,566 56,299 66,736 72,367 77,690 67,471 11,324 10,219 Colombia 8,479 8,795 9,244 10,330 1 1,196 12,014 10,825 1,517 1,189 C6te d'lvoire 4,042 3,986 3,625 3,532 3,684 * 3,521 2,052 296 1,469 Egypt 1 3,569 11,886 10,448 10,049 10,520 10,774 3,194 1,252 7,580 Hungary 1 1,151 9,289 8,004 8,761 9,511 8,889 8,108 806 781 India 15,383 18,601 16,460 18,308 19,351 18,990 16,135 4,178 2,855 Indonesia 39,773 46,967 44,730 50,126 56,726 60,549 51,065 7,016 9,484 Korea, Rep. of 41,820 44,598 47,078 63,454 79,182 86,262 83,272 2,039 2,990 Malaysia 10,062 12,886 17,937 16,853 18,865 19,886 17,762 1,818 2,124 Morocco i 8,053 7,994 7,410 7,747 8,180 7,501 5,068 2,678 2,433 Nigeria 1 2,896 13,386 12,348 12,421 13,999 13,174 3,164 1,605 10,010 Philippines I 1 ,839 1 1,063 10,715 1 1,370 12,486 12,907 8,155 2,315 4,752 Thailand 24,953 30,552 37,872 59,58 1 76,729 96,118 90,165 2,919 5,953 Turkey I 23,094 24,425 29,238 24,442 26,445 27,725 23,792 8,538 3,933 Uruguay ! 1,991 2,581 2,776 2,483 2,415 2,962 2,847 161 II5 Venezuela 19,475 20,158 18,672 16.198 5,868 14,757 13,180 5,043 1,577 Offshore banking centers i 119,142 135,967 147.872 154,194 178,079 1 86,673 179,3 16 6,073 7,357 Oil exporters 185.856 187,950 133,775 135,689 141,671 133,158 86,81 1 28,132 46,347 DRS reporters 139,563 142,242 87,385 82,219 85,891 82,081 51,127 24,519 30,954 DRS reporters 673,182 708,689 781,915 851,9 1I 933,903 964,685 812,416 119 ,902 152,269 Note: See country c assifications at the end of this statistical appendix. a. Most of these countries are also included in the indebted country groups. Source: OECD; Bank 'or International Settlements, Statistics on External Indebtedness. L* FinancialFlows and the Developing Countries Statistical appendix TAP\ F A Commercial bank claims on developing countries US$ millions Clowms Liobilities Country group or country 1994 1 995Q3 1 995Q4 1996QI 1995Q2 1995Q3 1995Q4 1996QI All developing countries j 752,893 842,437 878,195 891,916 688,718 71 1,030 727,826 739,465 EastAsiaand Pacific | 236,176 297,3 7 320,270 335,309 120,356 125,832 128,766 132,275 Europe and Centra Asa 56,330 178,400 182,202 187,175 138,356 150,478 150,969 151,519 Latin America and the Caribbean 1 231,051 235,497 247,433 245,615 176,608 191,636 205,400 208,626 Middle Eastand NorthAfrica 1 73,837 71,920 67,102 63,912 156,610 149,486 147,470 148,738 South As a 23,852 26,75 27,777 27,816 60,068 57,515 59,378 63,165 Sub-Saharan Afrca 31,647 32,552 33,411 32,089 36,720 36,083 35,843 35,142 Severely indebted middle-income 249,582 251,906 259,090 259,331 181,671 195,915 203,778 206,143 Algera 14,278 13,053 12,261 11,837 3,485 3,319 2,982 3,059 Angola 1,599 1,497 1,528 1,819 731 61 1 694 939 Argentina 32,552 34,081 34,918 33,900 20,986 2 ,646 24,973 24,692 Bolivia 414 420 508 50 865 911 998 1,097 Brazil 1 61,794 68,353 73,153 75,496 47,727 58,540 60,271 59,579 Bulgaria 3,153 2,952 2,829 2,655 1,671 1,816 1,881 1,494 Gabon 763 596 638 59 757 731 695 757 Ecuador 1 3,253 2,943 2,846 2,972 3,487 3,196 2,303 2,641 Jamaica 1 604 602 554 543 988 1,096 954 959 Jordan 1 1,352 ,269 1,333 1,205 6,584 6,700 6,675 6,654 Mexico 1 76,833 70,697 73,324 71,871 25,641 27,531 33,525 33,879 Panama 33,264 34,427 33,344 32,132 42,306 42,390 39,465 39,500 Peru | 3,320 4,135 4,978 5,317 4,792 4,313 4,551 5,096 Po and I 7,489 8,022 7,834 9,454 12,050 13,181 13,546 15,396 Syrian Arab Republic | 575 586 557 543 6,756 7,046 7,533 7,721 Severely indebted low-income 30,097 29,512 29,754 29,225 36,643 35,605 36,105 35,602 Moderately indebted low-income 24,453 27,179 27,236 27,820 53,653 52,888 49,671 49,534 Moderately indebted middle-income 1 188,002 206,617 210,590 213,836 129,749 134,285 137,490 133,695 Selected countries' 1 409,438 467,471 493,443 505,970 260,491 269,122 274,932 279,691 Ch I| 12,284 1 2,768 13,900 13,223 12,303 11,428 11,999 11,618 China 56,464 61,564 67,077 70,185 57,288 57,803 57,428 55,023 Coombia i 9,005 10,279 10,53 10,751 7,568 7,522 7,436 7,414 C6te d'lvoire 2,040 1.994 1,959 1,847 2,11 1 2,149 2,075 2,278 Egypt ! 3,074 3.014 3,101 2,972 29,395 29.305 27,265 25,133 Hungary 7,928 8. 48 8,036 7,646 2,137 1,846 2,548 2,393 India 15,488 16.667 17,049 17,443 12,912 12,751 12,609 14,568 Indonesia 1 41,621 48.466 48,935 50,484 12,323 11,387 11,482 11,657 Korea. Rep. of 60,974 79,329 83,261 90,4 6 20,226 24,181 25,100 29,598 Malaysia 14,477 16.733 18,750 19,0 8 11,581 11,853 13,034 15,116 Morocco j 5,050 5,481 4,916 4,86 6,784 6,509 6,225 3,029 Nigeria 1 3,642 3,2 1 3,067 2,991 4,615 3,711 4,001 3,708 Phi ippines j 6,543 7,370 8,076 8,890 7,232 6,507 7,339 6,483 Thailand 1 54,442 82,196 92,160 94,31 1 9,366 1 1,547 1 1,807 1 1,700 Turkey ! 16,969 9,882 20,272 20,644 22,045 24.560 23,800 24,471 Uruguay j 2,380 2,359 2,989 3,151 5,837 5.558 6,272 6,292 Venezuela ! 13,376 12.100 11,684 1 441 20,263 21,722 20,502 21,593 Offshore banking centers 1,164,365 1,276.984 1,285,460 1,254,556 1,102,709 1,073,833 1,083,943 1.070,932 Oil exporters i 103,349 101.791 99,238 98,860 179,771 169,768 169,143 177,9 11 DRS reporters 50,944 49,224 47,895 46,852 44,521 45,135 44,506 44,527 DRS reporters 709,691 795,852 830,079 845,154 576,523 602,786 611,671 614,331 Note: See country class fications at the end of th s stat stica append x a. Most of these countr es are also included in the indebted country groups. Source: Bank for Intemat onal Settlements, lnternotonoi Banksng and Financial Morket Deveiopments. November 1996 m Statistical appendix TABL Commercial bank claims on developing countries, by country of origin US$ millions Conodo FronceY Country group or country 1 1993 1 994Q4 1 995Q I 1995Q2 1991 1992Q3 1 992Q4 1993QI All developing countries i 17,430 15,821 16,860 17,770 78,712 85,008 77,821 77,192 EastAsiaand Pacific 1,969 2,364 2,317 2,341 14,303 17,026 15,012 16,979 EuropeandCentralAsia 490 302 304 287 16,932 18,917 18,251 16,736 Latin America and the Caribbean 14,128 12,220 13,06 13,817 17,399 18,292 17,184 16,592 Middle East and North Africa 295 342 313 465 17,371 17,467 15,524 15,269 South Asia 438 433 570 564 1,939 2,523 2,169 2,142 Sub-Saharan Africa 10 160 294 296 10,769 10,782 9,681 9,474 Severely indebted middle-income 6,295 6,533 6,741 6,558 28,541 29,191 26,850 26,115 Algeria 2 34 24 17 5,775 5,287 4,613 4,656 Angola - - - - 730 744 745 628 Argentina 680 709 793 917 2.335 2,298 2,350 2,099 Bolivia - - 3 8 18 19 18 Brazil 2,736 2,383 2,422 2,388 7,885 8,292 7,693 7,447 Bulgaria - - - - 654 664 621 542 Gabon - - - - 825 884 751 744 Ecuador - - - - 164 152 167 125 Jamaica I - - - - 14 12 0 7 Jordan 1,020 1,095 746 740 Mexico 2,312 2,926 3,004 2,714 2,357 2,849 2,610 2,669 Panama 234 225 240 276 2,530 2,596 2,623 2,627 Peru 73 87 87 90 640 629 571 508 Poland 259 171 172 154 321 1,425 1,308 1,288 Syrian Arab Republic - - - - 271 285 271 241 Severely indebted low-income - - - 16 8,380 8,795 7,832 7,446 Moderately indebted low-income 224 264 335 250 4,895 5,437 4,577 4.536 Moderately indebted middle-income 1,441 1,522 1,635 1,484 18,763 19,436 19,0 6 17.022 Selected countriesb 5,671 6,803 6,985 6,579 33,827 36,943 33,002 34. 63 Chile 476 540 598 607 437 539 543 5 3 China 255 473 4 0 491 3,769 4,645 4,512 5,716 Colombia __ -_ 512 575 589 624 C6te d'lvoire - - - - 1,936 2,065 1,793 1,4 2 Egypt - - 2,437 2,364 1,972 1,851 Hungary - - - 217 175 153 44 India 224 264 335 250 1,362 1,783 1,451 1,328 Indonesia __2,537 2,692 2,431 2,541 Korea, Rep. of 843 885 969 940 4,573 5,904 4,664 5.205 Malaysia 381 297 234 248 455 712 659 694 Morocco - - - - 2,199 2,296 2,157 1,986 Nigeria __ _ 1,500 1,295 1,129 1.008 Philippines 266 297 322 223 1,389 894 811 731 Thailand 224 412 382 440 1,276 1,70i 1,668 1,850 Turkey - - - - 1,928 2,077 2,093 2,072 Uruguay - - 130 186 162 190 Venezuela 688 675 709 649 1,367 1,386 1.309 1,150 Offshore banking centers 0,602 1 1.610 12,046 13,486 35,166 42,766 40.286 38,450 Oil exporters 1,088 1.383 1,420 1,432 21,848 22,67 21.364 19,901 DRSreporters 1,037 1,247 1,297 1,272 17,114 17,633 16,221 4,136 DRS reporters 2,255 1 1,908 12.802 13,226 68,657 74,763 68.084 68,609 * Financial Flows and the Developing Countries * Statistical appendix TABLE A 6 Commercial bank claims on developing countries, by country of origin (continued) US$ mrndons Germany' ltoiy Country group or country 995Q3 1 995Q4 1996QI 1996Q2 1994 i 995Q I 1995Q2 1995Q3 All developing countries 81,841 189,294 93,656 190,199 27,346 27,800 28,386 27,491 East Asia and Pachfc 28,502 32,765 35,266 34,737 52 5 46 43 Europe and Central Asia 72,386 72,533 73,534 69,901 7.954 8,485 8,683 7,956 Latin America and the Caribbean 34,597 34,766 34,900 35,329 9,234 9,602 9,451 9,274 Middle Eastand NorthAfrica 17,070 16,985 16,537 16, 70 619 669 633 597 South Asia 0,439 1 I102 1 I172 0,914 3,067 3,212 3,349 3,367 Sub-Saharan Africa 7,861 8063 8,384 8,285 1,136 1. 32 [,038 1,000 Severely indebted middle-income 39,297 39 696 40,076 40,422 8,184 8,541 8,399 8,003 Ageria 1,387 1.437 309 1,145 - - Angola - - - _ _ Argentina 8,495 7.897 7.698 7,970 3,469 3,926 3,912 3,174 Bolivia 433 431 4 6 434 8 8 4 2 Brazi 11,070 0,934 11,62 1 1 2,333 1,675 1,800 1,757 2,130 Bugara 1,200 150 , 26 1,077 341 363 373 346 Gabon 56 58 54 49 - - Ecuador 246 207 201 208 164 107 107 154 Jamaica _- - _ _ Jordan 530 534 517 525 - - - Mexico 4,815 5,369 5,160 4,99 1,622 1,529 1,462 1,490 Panama 2,426 2,908 2,694 2,779 - - Peru 982 975 942 92 16 166 187 212 Po and 2,0 9 2,041 2,251 2,028 744 642 598 495 Syran Arab Republc 645 645 691 683 - Severely indebted low-income 5,330 6,429 6,673 6,130 722 673 644 598 Moderately indebted low-income 13 270 13,587 13,402 13.2 0 102 110 59 74 Moderately indebted middle-income 66 414 65,766 66,329 65. 3 8,051 8,518 8,627 8,240 Selected countriesb 63,338 68,194 69,968 68.785 4,085 3,846 3,767 3,830 Ch e ,752 1,910 1,832 1,950 355 355 338 349 China 6,261 7,021 7,915 5,339 - - Colombia 716 1,902 1,866 1,841 412 385 368 388 C6ted'lvoire 358 379 369 354 12 12 13 17 Egypt 2,876 2,902 2,822 2,804 - - Hungary 4,224 4,340 3,997 3,619 2 3 224 281 256 India 7,892 8,139 8,195 8,1 is - Indonesia 7,058 7,497 8,164 8,303 - Korea, Rep. of 7,717 8 732 9,462 0,130 Malaysia 1,233 1 326 291 1,479 - - Morocco 1,276 1K257 178 1,214 298 279 272 269 N geria 569 553 497 478 710 661 631 581 Philippines 760 805 797 854 52 51 46 43 Tha land 5,222 6,318 6.649 7,579 - - Turkey 8,245 8,277 8.442 8,633 - - Uruguay 263 30 288 274 Venezuela 1,252 1 286 203 1,174 709 629 627 706 Offshore banking centers 06,256 122,347 13 402 126,849 21,483 20,32 19,565 20,869 Oil exporters 15,987 16,840 17 259 16,086 12,716 12,534 13,138 12,769 DRS reporters 8,656 8,499 7,829 7,474 7,431 7,884 7,953 7,515 DRS reporters 154,452 58,778 161, 62 157,147 1 1,734 12,099 1 1,864 1 1,518 (table cantinues oen etext page) November 1996 Statistical appendix Ts lb D Commercial bank claims on developing countries, by country of origin (continued) US$ millions i Netherlondsa Switzerland Country group or country 1993 1994 1 995Q2 1995Q4 1992 1993 1994 1995 All developing countries 22,902 26,904 29,751 30,238 23,769 25,453 28,698 29,451 East Asia and Pacific 4,197 6,023 7,552 7,701 2,604 3,593 3,951 5,627 Europe and Central Asia 4,372 4,576 5,675 4,200 5,569 5,549 5,145 5,076 LatinAmericaandthe Caribbean 10,334 11,678 11,939 14,145 9,498 10,231 12,817 12,041 Middle East and North Africa 2,027 1,841 1,976 1,555 3,164 3,136 3,293 3,323 SouthAsia 486 1,353 1,000 1,247 718 975 l,019 1,485 Sub-Saharan Africa 1,106 1,213 1,322 1,198 2,215 1,969 2,474 1,899 Severelyindebted middle-income 7,872 9,264 9,867 11,434 11,897 12,144 14,406 13,001 Algeria 742 567 450 376 298 289 287 234 Angola ! - - - - 106 76 48 26 Argentna 1,425 1,622 1,732 1,797 1,604 1,365 1,821 2,970 Bolivia - - - - 16 25 43 47 Brazil 2,772 3,139 3,376 4,166 2,821 3,023 2,232 2,088 Bulgaria - - - 248 264 75 40 Gabon - - - - 8 7 10 10 Ecuador 360 391 264 319 132 145 163 116 Jamaica - - - 8 2 2 18 Jordan - - - 106 82 96 110 Mexico 1,704 2,058 2,584 3,6 1 7 2,369 2,860 5,2I 1 3, 1 99 Panama 1 465 779 909 573 3,295 3,222 3,749 3,252 Peru - 220 - - 172 151 203 535 Poland 404 488 551 585 443 390 188 76 Syrian Arab Republic - - I19 21 33 34 Severely indebted low-income - _ - - 1,870 1,651 1,687 525 Moderately indebted low-income 1,270 907 1,048 305 1,492 1,436 1.900 Moderately indebted middle-income 7,419 8,126 9,898 9,032 5,663 6,041 6,390 7,1 13 Selected countriesb 10,019 13,195 15,139 14,967 9,692 11,323 14,088 14,188 Chile 625 667 653 810 624 690 1,066 1,073 China 582 1,221 1,147 138 495 537 680 1,060 Colombia 613 749 765 706 291 374 561 625 Cote d Ivoire - - - - 100 99 IIS 84 Egypt - - 383 339 287 317 Hungary _ - 354 457 63 77 88 78 Inda - 971 472 537 417 631 538 971 Indonesia 1,768 2,353 3,265 3,584 317 593 742 1,128 Korea, Rep. of 1 670 863 1,229 ,592 775 662 904 1,264 Malaysa 282 475 474 476 150 509 295 313 Morocco - - - - 131 117 141 192 Nigeria - - - - 200 109 68 55 Philippines 315 439 532 846 121 165 158 403 Thailand 580 671 907 1,065 633 1,010 1,164 1,447 Turkey 1,308 1,373 1,537 1,617 1,534 1,295 1,295 Uruguay 659 757 697 699 106 218 242 180 Venezuela 831 787 771 762 839 844 629 641 Offshorebankingcenters I 11,289 14,706 17,492 20,202 18,826 21,244 21,138 24,376 Oil exporters 3,237 2,357 2,588 2,447 5,29 1 4,398 4,586 4,826 DRS reporters 1 2,834 2,052 1,997 1,929 2,942 2,157 1,970 2,002 DRS reporters 16,605 21,204 23,721 24,433 23,264 26,189 29,295 30,825 Financial Flows and the Developing Countries Statistical appendix TABLE A.6 Commercial bank claims on developing countries, by country of origin US$ millions United lingdom' United Stotes4 Country group or country 1991 1992 1 993Q4 1994Q4 1995Q3 1995Q4 1996Q I 1996Q2 AJ developing countries 46,495 45,689 53,300 58,214 96,548 98,498 101,881 107,877 East Asia and Pacific 5,956 6,066 10,100 13,075 19,583 21,627 22,816 26,273 Europe and Central Asia 9,736 9,355 10,043 10,845 8,552 8,626 9,266 10,239 Latin America and the Caribbean 17,527 18,061 2 1,365 21,302 61,145 60,920 62,086 63,2 11 Middle East and North Afrca 4,203 3,425 4,205 5,209 3,450 2,782 3,030 3,327 South Asia 1,698 1,814 1,775 2,297 1,978 2,277 2,363 2,336 Sub-Saharan Africa 6,766 6,832 5,766 5,486 1,840 2.266 2,320 2,491 Severely indebted middle-income 17,764 17,487 20,168 20,487 48,345 48,31 1 49,562 50,527 Algera 921 685 412 430 662 732 774 768 Angola 22 30 64 61 - - - - Argentina 2,738 2,797 3,088 3,883 1 1,101 1 1,31 1 1 1,309 1 1,893 Boivia 6 17 49 59 121 140 156 178 Brazil 4,104 4,274 5,572 5,100 14,278 14,802 16,283 16,380 Bulgaria 233 191 231 89 27 73 118 82 Gabon 71 47 30 - 6 6 5 5 Ecuador 514 471 474 483 767 770 903 940 Jamaica 71 76 68 95 139 137 148 146 Jordan 357 270 302 282 62 60 34 54 Mexico 5,611 5,943 7,012 6,895 19,076 18,374 17,503 1 7,363 Panama 1,061 148 1,419 1,671 737 573 541 631 Peru 342 226 302 277 605 604 640 934 Poland I,188 1,000 879 973 716 681 1,100 1,015 Syrian Arab Republic 58 42 31 - I - - 90 Severely indebted low-income 2,909 2,417 2.296 2,405 889 950 1,058 999 Moderately indebted low-income 2,770 2,592 2,652 3,136 1,869 2,095 2,135 2,120 Moderately indebted middle-income 12,517 2,870 4,548 14,833 22,195 22,861 23,069 24,136 Selected countriesb 19,988 19,877 25,679 28,072 53,885 55,297 55,709 58,744 Chile 704 582 729 920 3,831 4,307 4,051 3,958 Ch na 1,031 942 2,369 3,223 1,475 1,732 1,973 2,269 Colomb a 6 13 647 810 1,028 3,087 3, 73 3,117 3,090 C6te d Ivoire 155 162 123 172 31 29 24 43 Egypt 594 430 726 796 1 10 17 129 177 Hungary 299 268 226 365 381 41 1 533 486 India 1,164 1,207 1,162 1K507 1,467 1,615 1,542 1,425 Indonesia 1,231 1,253 2,031 2,467 2,887 2,909 3,316 3,693 Korea, Rep. of 1,842 1,827 2,281 3,357 7,554 8,120 8,863 10,231 Malays[a 605 689 1,094 KI I I 1,196 1,536 1,395 1,903 Morocco 351 368 263 272 469 471 502 440 Nigeria 702 477 375 239 212 287 299 258 Philippines 717 761 885 702 2,787 3,018 2,633 3,423 Thailand 424 485 1,310 2,014 3,684 4,312 4,636 4,754 Turkey 1,134 1,053 1,658 1,100 .817 1,504 1,539 1,848 Uruguay 185 227 251 333 13 15 1,211 1,297 1,403 Venezuela 2,241 2,466 2,476 1,746 3,628 3,121 3,382 3,055 Offshore banking centers 25,943 24,063 47,343 51,506 27,736 31,485 28,848 30,736 Oil exporters 0,096 9,793 10,16 9,563 8,132 7,708 8,134 8,161 DRS reporters 7,861 7,705 6,9 9 4,902 5,243 5,405 5,718 5,350 DRS reporters 36, 83 35,850 43,765 48,532 87,969 89,750 92,709 97,241 -Not available. Note. This tab e shows the latest avai able data from each major creditor country. Recent data are not available for Japan. See country classificatons at the end of this statistical appendix. a. Consolidated claims of banks and their worldwide operations. b. Most of these countries are a so inc uded n the indebted country groups. c. Party consolidated aggregate claims of banks and their worldwide operations. Source: Banque de France, Bulletin Trimestriel: Deutsche Bundesbank, ZohlUngsbilonzstotistek; Banca d'Italia, Bolletno Economico; De Nederandsche Bank, Quortery Buletin; Banque Nationale Suisse, Les Banques Suisses: Bank of England, Statistical Abstract Port 1; Federal Financial Institutions Examination Council. U.S. Country Exposure Lending Survey. November 1996 Statistical appendix TABLE A.7 Maturities of bank claims on developing countries US$ millions 1995Q4 More than Less than I yeor and less More than Estimated Short term Country group or country 1 994 Total I year than 2 years 2 years Unallocated short term (% of total) All developing countries 643,351 898,139 413,272 50,553 239,774 194,540 371,891 41 EastAsiaand Pacific 196,488 260,773 162,274 4,455 64,986 19,058 149,936 57 Europe and Central Asia 145,746 175,55 1 8 1,105 1 5,7 11 65,8 1 8 1 2,9 1 7 69,0 11 39 Latin America and the Caribbean 198,267 213,558 11 2,057 1 2,348 71,880 1 7,273 104,180 49 Middle East and North Africa 54,02 1 52,245 25,821 4,666 20,924 834 20,789 40 South Asia 8,994 22,074 11,993 1,343 7,394 1,344 10,506 48 Sub-Saharan Africa 29,835 173,938 20,022 2,030 8,772 143,1 14 17,469 10 Severely indebted middle-income 2 13,455 226,688 1 13,63 1 1 3,393 8 1,304 1 8,360 1 03,886 46 Algeria 14,364 13,247 5,191 1,638 6,232 186 3,261 25 Angola 1,568 1,695 863 161 526 145 704 42 Argentina 34,343 39,181 22,417 2,218 11,145 3,401 20,730 53 Bolivia 356 399 280 5 50 64 279 70 Brazil 47,588 57.39 1 32,1 I5 3,416 1 6,187 5,673 30,693 53 Bulgaria 3,010 3,007 563 262 1,655 527 340 1 1 Gabon 733 640 308 75 245 12 229 36 Ecuador 3,050 2,780 1,398 77 1,159 146 1,207 43 Jamaica 657 644 387 50 164 43 357 55 Jordan 1,081 1,138 726 57 215 140 66i 58 Mexico 61,731 57,331 26,019 3,403 22,859 5,050 23,933 42 Panama 26,051 27,723 13,077 1,407 11,852 ,387 1,777 42 Peru 3,064 5,617 4,306 194 1,096 21 4,257 76 Poland 6,546 6,870 2,004 291 3,188 1,387 1,684 25 Syrian Arab Republic 467 471 304 3 153 11 296 63 Severely indebted low-income 25,125 25,500 12,31 1 1,830 0,137 1,222 9,580 38 Moderately indebted low-income 22,605 25,800 14,679 1,691 8,255 J, 75 12,786 50 Moderately indebted middle-income 179,452 209,388 99,495 18,986 78,858 12,049 83,264 40 Selected countries' 353,271 417,265 233,478 26,505 126,744 30,538 2 0,627 50 Chile 12,219 13,616 7,446 1,060 4,856 254 6,661 49 China 41,005 48,399 23,060 3,601 7,342 4,396 20,206 42 Colombia 9,980 10,940 5,810 756 4,053 321 5,046 46 C6te d'lvoire 2,034 1,993 1,751 45 160 37 1,690 85 Egypt 3,194 3,487 2,463 343 651 30 2, 16 61 Hungary 8,693 9,104 3,150 754 3,841 1.359 2, 78 24 India 14,202 15,446 7,714 1,094 5,593 1.045 6,442 42 Indonesia 34,198 44,843 27,900 3,157 12,332 1,454 24,560 55 Korea, Rep, of 6,459 77,392 54,130 2,553 12,058 8,651 51,240 66 Malaysia 13,460 16,759 7,882 1,147 5,711 2,019 7,043 42 Morocco 4,725 4,654 2,109 340 2,204 1 1,748 38 Nigena 3,276 2,826 1,190 363 1,181 92 816 29 Philippines 6,498 8,325 4,070 345 3,441 469 3,831 46 Thailand 43,386 62,994 43,817 3,536 13,600 2,041 41,769 66 Turkey 15,472 18,623 8,965 1,961 6,279 1,418 7,340 39 Uruguay 3,491 3,748 2,457 71 1,159 61 2,405 64 Venezuela 13,100 11,940 2,920 749 6,555 1,7 16 2,495 21 Offshore banking centers 599,962 658,672 530,634 16,232 82,092 29,714 515,701 78 Oil exporters 125,383 129,669 57,673 1 1,340 57,025 3,631 46,338 36 DRS reporters 97,124 102,506 40,239 10,684 48,292 3,291 29,795 29 DRS reporters 563,091 662,234 366,600 40,762 206,909 47,963 332,275 50 Note: See country classifications at the end of this statistical appendix. a. Most of these countries are also included in the indebted country groups. Source: Bank for Intemational Settlements, The Maturity and Sectoral Distribution of Intemotionol Bank Lending. E Financial Flows and the Developing Countries * Statistical appendix TABLEA 8 Funds raised on international capital markets US$ milDons Country group or country 992 1993 1994 1995 1994Q4 1995QI 1 995Q2 1995Q3 1 995Q4 1 996Q I Al developing countries 41,562 78,257 76,144 96,177 20,072 16,920 22,832 30,760 25,665 39,258 Bonds 22,335 57,020 49,2 0 53,472 14,361 5,461 12.794 19,097 16,121 32,806 International 14,362 40,265 37,068 34,827 11 271 3,797 9.251 1 1,773 10,006 26,533 Foreign 7,974 16,756 12,142 8,646 3.090 1,664 3.543 7,324 6,1 5 6,273 Loans 19,226 21,237 26,935 42,705 5,7 1 1 459 10,038 11,663 9,544 6,452 International 18,98 21,040 26.840 42,705 5,711 11,459 10,038 11,663 9,544 6,424 Foreign 245 197 95 - - - - 28 East Asia and Pacific 15,897 26,612 35,098 39,985 6,597 8,153 7,440 13,428 10,964 10,161 Europe and Central Asia 9,642 20,264 3,632 19,008 4,081 4,718 6,097 4,079 4, 15 16.577 Latin America ard the Caribbean 9,5 8 27,338 20,438 24,788 7,196 995 6,189 8,985 8,619 10.995 M dd e East and North Afica 3,070 337 1, 02 1,51 18 272 284 268 202 758 South Asia 20 567 1,656 2,954 318 1,053 488 1.063 350 413 Sub-Saharan Africa ,273 102 1,864 3,674 1,007 906 948 1,2 4 606 811 Severely indebted middle-income 8.247 22.686 18,366 21,507 6,049 700 6,151 8,288 6,369 9,408 Algeria _ _ _ _ _ Angola 325 12 124 24 310 Argentina 1,529 6,473 5,716 6,983 2,572 405 1,5 2 2,190 2,876 3,443 Bolva - 10 Brazil 3010 6,449 4,0 1 6.635 2,128 158 3,114 1,437 1,927 2,325 Bulgaria Ecuador - 10 - -- 10 Gabon jama ca - - Jordan - 50 - 50 - Mexico 3,374 9,75 8.526 6,957 1,346 137 1,077 4,187 1,556 3.330 Panama - - 150 - 150 - - Peru - 100 50 - - 50 - Poland 9 - 3 549 3 - 299 250 - Syrian Arab Repub ic Severely indebted low-income 116 72 557 439 - 10 235 34 160 250 Moderately indebted low-income 316 657 1,674 3,012 318 1,053 488 1.063 408 413 Moderately indebted middle-income 13. 06 24.942 18,835 26,046 6,171 3,483 7, 33 6,768 8,662 9,861 Selected countries' 26.863 5 .999 49,917 60,344 10,257 9,482 1 1,898 22,051 16,9 4 1 6,536 Chile 350 775 80 448 245 377 451 375 1,132 China 4,043 6,756 8,097 6.258 1,378 1,582 553 2,265 1,858 1,200 Colombia 621 1,172 2.082 647 50 110 393 1,529 745 Cdte d'lvo re - - Egypt - 18 58 - - - 58 - Hungary 1,446 5,071 2.541 3,771 1,099 252 1,788 1,036 695 145 India 201 475 1.461 2,263 168 644 303 966 350 413 ndonesia 2,64 3,726 6. 99 7,588 .144 1.440 2,135 1,895 2,1 19 2,401 Korea, Rep. of 5,204 7,719 7,972 4,533 1,413 3,296 2,908 4,402 3,927 4,188 Malaysia 1,271 1,61 1 3,526 3,205 400 250 2,252 703 300 Morocco 60 25 - 25 - - Nigeria - Philippines 1,250 1,164 1,272 364 340 333 599 147 Thailand 2,718 5,550 7,910 6,634 1,897 1,836 1,254 2,246 1,298 1,925 Turkey 4,580 5,763 851 3,929 - - 805 1.623 1,501 590 Uruguay 120 140 203 206 103 - 206 - - Venezuela 1,035 2,931 400 346 400 - _ - 346 20 Offshore banking centers 2.058 9,476 8,574 4,939 2,852 851 1,582 1, 53 1,354 1,622 Oil exporters 4.445 3.503 2,817 3,949 788 168 715 1,420 1,646 650 DRS reporters 1.460 3. 57 1,498 1,566 516 - 140 1,080 346 405 OECDcountries 392,920 5 0,550 498,21 1 723,203 139,944 153,078 195,135 176,669 198,321 184,190 Multilatera insttutions 20,874 20,711 12,373 17,674 4,569 2,257 5,291 5,870 4,257 5,802 Other 1,961 3,037 2,353 4,257 601 812 1,403 1,789 253 301 Totalb 458 275 619,986 598,005 844.596 167,961 173,106 225,130 214,952 231,409 231,481 Not avaiiable. Note. See country classifications at the end of this statistical append x. a. Most of these countries are a so nc uded In the indebted country groups. b. Inc udes all developing countries, offshore bank ng centers, OECD countr es. mulitlatera nstitut,ons, and the category "other Source OECD, Finoncio, Stotistics Monthly, Port I November 1996 m Statistical peni TABLE A.9 Secondary market debt (bid) prices Percentage of face value Comntry group or country 1994Q I 1994Q2 1994Q3 1 994Q4 1995Q I 1995Q2 1 995Q3 1995Q4 1996Q I 1996Q2 1996Q3 Se- rly d Mie4ncoe Angola 20 20 18 15 - - 17 16 19 18 22 Argentnaa 52 50 51 41 40 48 47 56 52 55 55 BrazilP - 41 44 40 36 45 48 52 S l 53 57 Bulgana 35 25 45 45 42 50 S l 53 50 52 5 1 Cameroon 23 16 17 10 - - 13 14 16 16 16 Congo 13 133 13 11 - - 13 12 15 16 18 Ecuador' 40 40 33 29 27 48 49 50 54 36 37 Jamaica 85 83 83 83 - 82 - - 76 74 77 Jordan 48 47 48 42 35 39 44 47 54 18 Morocco 64 72 72 66 58 58 63 67 69 24 Panama 54 49 59 53 - 53 59 - 45 48 48 Peru 46 48 60 56 51 61 68 71 - - - Poland 32 35 37 33 31 43 43 47 49 50 51 Uruguay _ _ _ _ _- - - - - Other Ited counti Albania 10 12 16 16 16 18 21 22 14 13 12 Algeria 48 43 46 30 28 28 - - 46 18 - Chile 94 95 95 95 - - __ - - - Costa Ricad 69 66 66 66 - 51 52 54 60 59 67 C6ted'lvoire 20 18 19 18 15 15 16 16 20 19 19 Egypt 46 46 47 48 48 48 48 48 49 16 - Hordlas 34 39 36 36 - 27 - - - 35 38 Mexico, 69 63 66 53 47 60 60 64 64 66 67 Naragu 9 8 8 6 - 5 - 8 9 7 10 Niefia 42 40 39 39 37 43 44 48 52 53 56 Phaippiesf 66 63 65 59 59 73 74 74 79 80 81 Pssin FederatiX - - 39 28 22 32 33 34 34 42 61 Vetezuelae 49 49 49 45 43 50 51 59 56 60 65 -Not available. a. Gurateed Rf.arcing Aireement (GRA). Pnices alter March 1993 refer to par bonds offered under the Brady initiative. b. Multi-Year Depese Facity Agreernent (MYDfA). Prices after Apnl 1994 refer to par bonds offered under the Brady initative. c. Multi-Year Refirwicingreeresf (PWRA). d. Prices refer to Series A par bonds ofered under the Brady initiative. e. Pnces refer to par bonds oaered under the Brady Kritiative. f. Public sector resudured debt, icn Cer" Ba* of the Phillipines. Prices refer to restructured loans offered under the Brady initiative. g.These are non-per-,anin bans of the RPassian Viesheconornbank. Source: Salomon Brothers: Euroweek Emnerrn Maiket Debt Report; lnternational Financing Review: and World Bank data. Financial Flows and the Developing Countries Staetcal TABLE A I C Emerging stock markets Market capitalization Value of stock traded Price-earnwngs ratio (US$ millions) (US$ millions) (percent) Economy 1996Q I 199602 1996Q3 1996Q/ 1996Q2 1996Q3 1996QI I996Q2 1996Q3 Argentina 37,480 44,108 40,574 1,158 1,183 896 16.7 20.4 28.7 Brazil 161,506 191,287 193,91 1 21,700 26,584 32,381 21.4 30.1 21.3 Chile 69,129 72,713 70,253 2,685 2,146 1,894 15.9 16.3 16.1 China 43,402 72,473 85,990 4,777 40,637 70.735 0 12.7 12.8 Colombia 14,579 14,981 15,660 272 366 392 11.7 9.5 10.2 Greece 18,154 23,717 24,733 2,065 1,498 1,902 10.8 9.4 9.9 Hungary 3,556 4,239 4,631 309 334 390 28.1 35.5 20.4 India 154,392 150,671 133,746 4,309 8,061 8,053 14.7 16.8 13.5 Indonesia 74,953 79,216 79,801 6,386 7,539 7,501 26.7 22.4 20.2 Jordan 4,295 4,209 4,383 63 64 72 14.6 12.9 14.0 Korea, Rep. of 178,695 164,940 161,397 35,475 62,913 36,723 20.7 14.9 13.8 Malaysiaa 259,292 271,290 281,269 43,387 42,137 37,727 28.9 27.7 26.4 Mexico 1 02,735 110,700 113,670 12,81 1 /3,617 8,628 16.8 10.0 I5.5 N geria 2,240 2,665 3,170 6 I 5 10 - - - Pakistan 9,792 10,608 1 1,538 1,813 1,738 1,069 14.2 I5.0 12.2 Peru 12,385 13,653 15,170 .240 844 1,020 15.6 17.4 19.5 Phil ppines 67,270 79,970 77,852 5,282 7,308 5,939 20.4 35.6 23.0 Po and 6,723 8,014 8,644 1,627 1.374 1,220 8.5 1 1.4 14.0 Portugal 18,842 20,653 21,359 1,584 1,374 1,490 15.1 15.37 15.9 SoithAfrca 278,435 270,903 252,514 7,121 .409 6,169 18.7 18.9 18.7 SriLanka 2,106 1,777 1,739 51 21 19 13.3 1 1.3 [ 1.7 Tawan(China) 185,541 232,878 235,069 58,704 167,171 103,278 21.6 26.9 26.6 Turkey 31,225 28,967 27,877 1 1,565 8,050 5,402 12.0 9.8 10.6 Venezuela 3,77 5,343 6,869 203 242 278 28.9 33.7 37.7 Zimbabwe 2,36 2,547 3,044 44 47 47 1 1.6 13.0 15.5 -Not availab e. a. Data for Malaysian- ncorportated compan es on y. Source International Finance Corporation, Emerging Stock Markets Frctbook. November 1996 m I Statistical appendix Country groups East Asia and Pacific Former Yugoslavia' Co ombia Iraq** Ethiopia* American Samoa Georga* Costa Rica* Jordan* Gabon* Cambodia* Gibraltar** Cuba** Libya** Gambia, The* China* Greece** Dominica* Morocco* Ghana* Fiji* Hungary* Dominican Republic* Oman* Guinea* Guam Isle of Man Ecuador* Saudi Arabia** Guinea-Bissau* Indonesia* Kazakstan* El Salvador* Syrian Arab Repub ic* Kenya4 Kiribati* Kyrgyz Republic4 French Gu ana Tunisia' Lesotho* Korea, D.P.R. of" Latvia* Grenada* Yemen* Madagascar* Korea, Rep. of' Lithuania* Guadeloupe Malawi* Lao P.D.R.* Macedonia FYR* Guatemala* South Asia Mali* Malaysia* Malta' Guyana* Afghanistan** Mauritania* Marshall Islands Modova* Haitil Bangladesh* Maurit us* Micronesia Poland* Honouras* Bhutan' Mayotte Mongolia* Portugal* Jamaica* Indias Mozambique' Myanmar* Romania* Martin que Maldives* Nam b a** New Caledonia** Russian Federation4 Mexico* Nepal* Niger* Papua New Guinea* Slovak Repubi c* Nicaragua* Pakistan* Nigera* Philippines* Slovenia* Paraguay' Sr4Lanka* Reunion Solomon Islands* Tajikistan* Peru* Sub-Saharan Africa Rwanda* Thai and* Turkey* Puerto R co Angola' Sao Tome and Principe* Tonga* Turkmen stan* St. Kitts and Nevis* Benin* Senegal' Vietnam* Ukraine* St. Lucia* Botswana* Seychelles* Western Samoa* Uzbekistan* St. Vincent' Burkina Faso* Sierra Leone* Suriname** Burundi* Somalia* Europe and Latin America and Trin dad and Tobago* Cameroon* South Africa** Central Asia the Caribbean Uruguay* Cape Verde* Sudan* Alban a* Antigua and Barbuda** Venezuela* Central African Republic* Swaz land4 Azerbaijan* Argentina* Belarus* Aruba Middle East Chad* Tanzania Bulgaria4 Belize' and North Africa Comoros* Togo* Croatia* Bolivia' Algeria* Congo Uganda' Czech Republ c* Brazil* Egypt, Arab Rep. of* C6te d'lvoire* Za re' Eston a* Chi e* Iran. Islam c Rep. of* Djibouti' Zambia' Equatoria Gu nea* Zimbabwe* Severely indebted Syrian Arab Republic Liberia Zambia Moderately indebted middle-income Madagascar middle-income countriesab Severely indebted low- Mali Moderately indebted countries4 Algeria income countries4 Mauritania low-income countries' Cape Verde Angola Afghan stan** Mozambique Albania Chile Argent na Burundi Myanmar Bang adesh Colombia Boliva Cambodia Nicaragua Benin Dominican Republic Brazil Cameroon Niger Chad Greece** Bulgaria Central African Republic Nigeria Comoros Hungary Cuba** Congo Rwanda Egypt, Arab Rep. of Indonesia Ecuador Cote d'lvoire Sao Tome and Principe Gambia, The Morocco Gabon Equatorial Guinea S erra Leone Hait Papua New Guinea Iraq** Ethiopia Somalia India Philippines Jamaica Ghana Sudan Lao P.D.R. Russian Federation Jordan Guinea Tanzania Malawi Tunisia Mexico Guinea-Bissau Uganda Nepa Turkey Panama Guyana Vietnam Pakistan Venezuela Peru Honduras Yemen Senegal Western Samoa Poland Kenya Za re Zimbabwe Offshore banking Cayman Islands S ngapore Brunei Nigera4 centers' Hong Kong Vanuatu' Congo* Oman* Bahamas Lebanon* Former Sov et Un on4 Qatar Bahrain** Liberia' Oil exporters Gabon* Saudi Arabia** Barbados4 Macao Algera* Iran, Islamic Rep. of4 Trin dad and Tobago' Bermuda Nether ands Ant lies Ango a* Iraq4* Un ted Arab Emirates Panama* Bahrain** Libya** Venezuela* DRS reporter. 1* Non-DRS economy. The rema ning countries snclude selected h gh-income and non-OECD middle-income countries. 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