QUARTERLY REVIEW FINANCIAL FLOWS TrO DEVELOPING COUNTRIES CURRENT DEVELOPMENTS June 1992 ~~~~~~~~. ... .... ., .... . .... ... ... ... . . FILE COPY THE WORLD BANK DEBT AND INTERNATIONAL FINANCE DIVISION Quarterly Review Financial Flows to Developinr Counties Table of Contents Page SUMMZARY ....................................................... I I ... i INTERNATIONAL LENDING AND CAPITAL MARKET ACTITITIES .................... 1 Borrowing on International Capital Markets .............................. 1 Commercial Bank Claims ......................................... 3 Country Creditworthiness ......................................... 4 NON-DEBT FLOWS AND FOREIGN DIRECT RNVESTMENT .......................... 5 Emerging Stock Market Activities ....................................5 New Equities, Quasi-Equities, and Derivatives ............................ 7 Foreign Direct Investment and Privatization .............................. 8 SECONDARY MARKETS FOR DEVELOPING COUNTRY DEBT ....................... 10 Price Trends and Trading Activities .................................. 10 New Developments in Debt Conversions ............................... 11 OFFICIAL AND MULTILATERAL FLOWS ..................................... 12 Lending and New Initiatives by IFIs .................................. 12 Bilateral ODA and Export Credits ................................... 14 COMMERCIAL BANK PROVISIONING AND CAPfIAL ADEQUACY ................... 15 Provisioning and Reserves ........................................ 15 Capital Adequacy ............................................. 16 DEBT RELIEF AGREEMENTS UPDATE ....................................... 16 Official Creditors ............................................. 16 Commercial Creditors ........................................... 19 FEATURE ARTICLE: Short-Term Conmnercial Bank Lending to Developing Countries .... ..... 21 STATISTICAL APPENDIX ................................................. 24 Debt and International Finance Division June 1992 Quarterly Review SUMMARY Total volume of cross-border financing leaving the first six months' performance barely continued to expand through the first quarter of 1992, positive. By region, the largest drop was registered surpassing the previous record set in the fourth in Latin American markets (15 percent), triggered by quarter of 1991. New bond issues surged during the a 30 percent plunge in Brazil. A sharp downturn in first quarter as lower U.S. interest rates led to a India following the revelation of trading irregularities strong expansion of the straight fixed rate sector. in the Bombay Stock Exchange and continuing The volume of newly arranged syndicated loans sluggish performance in Korea led to a 5 percent further weakened because of continuing asset decline in the Asian index, more than offsetting consolidation at major commercial banks. significant gains in Pakistan and Indonesia. Performance in Eastern Europe and Middle East Funds raised by developing countries continued to be weak. rebounded in the first quarter, reaching almost $8 billion. The dominance of bond issuance in Despite the recent weakness in emerging international capital market activities was also markets, international equity issues by developing apparent in developing country financing: about 60 country corporations further expanded in the second percent of the total new funds was raised in the form quarter, particularly in the form of depositary of bond issues. And this trend accelerated in the receipts. Telecom Argentina launched an almost $1 second quarter, reaching more than twice the volume billion American Depositary Receipt (ADR) program, of the same period last year. The share of one of the largest ADR programs to date. The first developing country borrowers in total bond offerings international equity offerings by an Indian company rose to the highest level since 1985. The external were also placed in the second quarter. In view of a borrowing activities during the reporting period were large number of ADR prograrns in the pipeline, new led by Korea, followed by Brazil and Thailand. international equity issues by developing country firms are expected to rise in thle coming months. The receptive bond market saw new entrants in recent months: Uruguay was the latest Latin The price performance of the secondary American country to return to the voluntary capital market for developing country debt was generally markets; and Trinidad and Tobago is expected to strong in the second quarter, with the notable become the first sovereign borrower from the exception of Brazil whose sovereign debt price Caribbean to tap the Eurobond market. Many experienced a major setback. The price of developing country borrowers had recourse to a benchmark Argentine debt soared to above 50, for wider range of bond market segments, including the the first time, upon the release of a term sheet for the first French franc-denominated bond issue by a Latin Argentine debt reduction agree ment. in June. Strong American borrower. Recent developing country gains were recorded by debt instruments of Ecuador, bonds were issued with improved spreads and setting a new record high iiI the second quarter. extended maturities: Mexico's Nafinsa issued a 10- Trading of Brady bonds continued to be heavy with year bond at a spread below 200 basis points, the generally rising prices, supported by declining yields tightest spread since the country's return to in U.S. bond markets. The recent political upheaval international capital markets. resulted in a large drop in the price of Algerian debt. In May, Moody's Investors Service assigned a Baa3 rating to the Republic of Turkey. It was Turkey's first formal rating from rating agencies. During the second quarter, two Paris Club The country had previously been assigned by agreements were signed: Uganwda and Togo. These Standard & Poor's as "satisfactory. " The Baa3 rating severely indebted low-income countries received represents an investment grade. S&P assigned a new enhanced Toronto terms. On June 22, official BB + rating to Hungary in May. After placing creditors agreed to a deferral of principal payments Argentina's credit rating under review in May, on the debt of the former Soviet Union. Commercial Moody's upgraded the country's rating by two creditors reached an agreement on the terms of the notches from B3 to Bl on July 13. Argentine debt reduction (as noted above) on June 14. This covered a total of $31 billion debt including Most emerging stock markets retreated interest arrears. An agreenment in principle on considerably during the second quarter of 1992. The Brazilian debt reduction was completed on July 9, IFC's emerging market composite index declined which covered about $44 billion of debt to more than 9 percent during the second quarter, commercial banks. i Quwtrly Revew INTERNATIONAL LENDING AND CAPITAL Funds raised by developing country MARKET ACTIVITIES borrowers totaled $7.7 billior (excluding $2.9 billion in borrowing by Saudi Arabia) in the first quarter of 1992, up slightly from $7.4 billion in the previous Borrowing on International Capital Markets quarter. Roughly 60 percent of the total developing country borrowing in the fir;t quarter of 1992 was raised in the form of bond issues, compared with less The volume of funds raised on international than 50 percent in the fourth quarter of 1991. Korea capital markets continued to expand during the first led the developing country borrowing programs with quarter of 1992, to a total of $116 billion, surpassing $1.3 billion, followed by Brazil ($0.8 billion), the previous record of $114 billion set in the fourth Thailand ($0.7 billion), China ($0.6 billion), South quarter of 1991. A substantial increase in bond Africa ($0.6 billion), Indonesia ($0.6 billion), and issues by $23 billion to $92 billion during the first Venezuela ($0.6 billion). The most noteworthy three months of 1992 more than offset a $20 billion development was a large quarterly funding by South contractioninsyndicatedloans. Continuingbuoyancy Africa, which was twice as big as the total volume in bond markets was led by the record pace of new achieved in 1991. The first quarter borrowing by issues in the straight fixed rate sector, reflecting the developing countries was concentrated in fewer prevailing low level of U.S. dollar rates. Floating countries: a total of 21 developing countries tapped rate instruments represented only about 6 percent of the international capital markets in the first quarter of total bond issues in the first quarter. The U.S. 1992, reduced from 31 countries in the previous dollar-denominated bonds amounted to more than $27 quarter. billion or about 30 percent of the total, followed by Ecu ($14 billion) and Japanese yen ($12 billion). Developing country bond issues further The growth in the Ecu-sector was most noticeable: expanded through the second quarter of this year, the first quarter volume was about five-times larger reaching more than twice the volume of the same than the fourth quarter of 1991. Increased bond period last year to $5 billion f:)r the first five months issuing activities were also recorded in Deutsche in 1992. The share of developing country borrowers mark and Italian lire sectors, as well as in medium- in total bond offerings rose to 4 percent, the highest term Euro-notes for a widening range of international since 1985. Brazil is the most active developing borrowers. Syndicated credits further weakened as country in the international primary bond market asset consolidation continued at major commercial lately, with nearly $2 billion new issues so far this banks (see Table 1). year, already surpassing the last year's total. Banks Table 1: International Capital Maret Borrowing (USS billions) Jan. - May. Instrument 1987 1988 1989 1990 1991 1991 1992 Bonds 180.8 227.1 255.7 229.9 297.6 126.4 140.8 Equities 18.2 7.7 8.1 7.3 23.4 8.1 11.0 Syndicated Loans 91.7 125.6 121.1 121.5 115.9 38.4 30.9 NIF 1/ and other Back-Up Facilities 31.2 16.6 8.4 7.0 6.4 2.3 3.6 ECP 2/ and other non-Underwritten 71.0 76.6 73.2 66.2 79.3 24.9 36.6 Total 392.9 453.6 466.5 431.9 522.6 200.1 222.9 Flows to Developing Countries 3/ (percent) 7.6 6.0 5.7 7.0 8.8 7.2 7.0 ll Note Issuance Facilities. 2/ Euro-Commercial Paper. 3/ Based on OECD definition and including Eastern European countries. Source: OECD Financial Market Trends. 1 June 1992 and public enterprises were dominant Brazilian bond market segments. Pemex, Mexico's state oil borrowers. As has been the case with other Latin enterprise, raised FFr500 million in 10 3/4 percent American bond issues, most of the Brazilian papers two-year bonds in the Euro-French franc market. were floated with U.S. SEC rule 144a tranches. This marked the first Latin American bond issue in Bond issuing activity by Asian borrowers was also the French franc sector. The Paribas-managed deal buoyant, particularly those from Korea, Thailand, was priced to yield 172 basis points spreads over and China (see Table 2). two-year French government yields. Pemex has raised $150 million equivalent in the Euromarket to The receptive bond market saw new entrants date in 1992, and plans to issue Eurobonds and in recent months: Uruguay was the latest Latin Medium-Term Notes (MTNs) totalling over $1 billion American country to return to the voluntary capital by the end of this year. Hungary is reportedly markets. The $100 million three-year Eurobond tapping the U.S. capital markets for the first time in issue in May 1992, which was lead-managed by J.P. 50 years. The $250 million Yankee bond issue by Morgan, was priced at 276 basis points over the National Bank of Hungary with maturities of comparable Treasuries. The Uruguayan bond, seven-to-ten years, which is lead-managed by carrying 8.25 percent coupon, met strong investor Salomon Brothers, is the country's latest effort to demand as it was perceived to provide much-needed diversify its funding sources. So far this year, diversification for institutional investors in their Latin Hungary has made two international bond issues of American bond portfolios. Trinidad and Tobago is DM 600 million (a seven year issue managed by expected to become the first sovereign borrower from Deutsche Bank) and Y30 billion (a 10-year issue the Caribbean to tap the Eurodollar market with a managed by Daiwa Securities). Corfin, the largest launch of its fixed-rate Eurodollar bond of $50 private leasing company from the Czech and Slovak million. Credit Suisse is expected to lead-manage the Federal Republic (CFSR), became the country's first offering which has a maturity of five years. The last private sector entity to issue bonds on international Eurodollar issue by Trinidad and Tobago was a $50 capital markets. The three-year, DM25 million deal million floating rate note (FRN) in 1983, even though arranged through Daiwa Europe (Deutschland) in there have been domestic issues and private May was priced at 99 5/8 percent and carried a placements in other currencies. coupon of 11.5 percent. Placement was mainly with large German institutions with some additional During recent months, developing country demand from Japanese investors. Aside from borrowers have had recourse to a wider range of Hungary and CFSR, which were the only two Table 2: Intenational Borrowing by Selected Developing Countries, First Quarter 1992 1/ (US$ millions) 1990 1991 1991Q4 1992Q1 Total Bonds Total Bonds Total Bonds Total Bonds Chile 285.0 l- - China 1,513.6 . 2,579.1 263.0 811.8 117.4 624.7 149.9 India 1,242.2 523.0 239.6 150.4 - - 14.4 - Indonesia 5,461.5 825.0 5,718.5 294.1 695.1 34.1 600.4 33.6 Malaysia 730.0 200.0 348.2 190.2 50.0 - 166.0 - Mexico 2,350.0 769.9 3,054.1 2,129.7 623.4 623.4 398.6 298.6 Pakistan 350.0 - 130.5 - 36.0 - - - Korea 3,981.8 1,515.4 5,764.8 2,446.4 1,350.5 420.4 1,279.6 886.1 Thailand 1,465.5 50.0 1,871.2 31.4 345.9 31.4 707.3 300.0 Turkey 2,498.3 660.5 2,127.5 639.8 584.2 377.2 515.0 314.8 Venezuela 1,595.1 203.1 581.3 581.3 356.3 356.3 600.0 600.0 Zimbabwe 156.0 - 170.0 - 30.0 - - Czechoslovakia 437.5 437.5 278.3 278.3 278.3 278.3 - - Hungary 986.9 946.9 1,378.3 1,237.8 388.0 388.0 365.0 365.0 Poland - 4.7 - - - USSR (Former) 3,250.1 297.6 - - - - - l 1/ Bonds include both international issues (in Euro - markets) and traditional foreign issues. Source: OECD Financial Statistics (Monthly), June 1992. 2 Quatrly Review FigueSpredoIntmatlBank Lm $40 million two-year issue managed by Bankers (Bsre1:Sprntd ont teLnItioaR) Trust. The bond was priced at about 280 basis points, nearly 100 basis poinis lower than the spread on its first Eurobond issue launched last year. Conmmercial Bank Claims 70 During the fourth quarter of 1991, interbank lending activity picked up, following three 6t R consecutive quarters of contraction. Outstanding cross-border claims of BIS reporting banks grew by $112 billion in the last three months of 1991, so // \\ compared with a drop of $169 billion in the OEM // 011Dpreceding nine months, largel:y due to increased year- 40 \+ //end activities by European and Japanese banks. Interbank claims of reporting banks rose by $85 30 _ _ _ __/ billion following a cumulative decline of $230 billion aZ 1907 1998 9989 1990 1991 1992 V in the first nine months of the year. 1 Jaury - lay. Soure OED. Countries outside the BIS-reporting area borrowed up to $17 billion from the international banking sector, the largest borrowing volume since the second quarter of 1982. Hlowever, new deposits Eastern and Central European countries accessed by these countries amounted to only $3.1 billion international bond markets this year, Poland is compared to a $11.0 billion increase in the previous planning to issue government bonds to foreign quarter. Nearly one-fourth oF the increased lending investors for the first time. The debut bond issue was to Asian countries, of which China accounted for totalling over $500 million equivalent (7,000 billion $3.7 billion. China also added $4.4 billion to its Zloty) will have a three-year maturity and pay an outstanding deposits. New borrowings by Korea interest rate of 10 percent over the three-month ($1.1 billion), which recorded a sizable current Polish treasury bill rate. account deficit in 1991, were accompanied by a drawdown of deposits ($1.8 billion). Outstanding Recent developing country bond issues have claims on Latin American countries rose by $2 been brought to market with improved spreads and billion, after successive declines in the two previous extended maturities, which is in contrast with the quarters. Among the major borrowers, Mexico took generally rising spreads on syndicated loans (see up $1.4 billion in the syndicated loan market. Figure 1). Nafinsa, Mexico's national development Outstanding claims on Argenttina rose due to the bank, issued in June a 10-year $100 million bond at continued accumulation of debt arrears, while a spread below 200 basis points. This was the identified claims on Brazil corttinued to fall. tightest spread for a Mexican public sector borrower since the country's return to intemational capital Claims on OPEC countries continued to markets about two years ago. Nafmsa's most recent experience sizeable increases, particularly for Iran comparable spread was 205 basis points in March ($1.9 billion) and the United Arab Emirates ($1.1 1992, whereas last year it paid 280 basis points. billion), out of a total new claims of $3.2 billion. Banca Serfin issued a $34 million 12-year bond. Large declines in identified deposits were recorded This deal was the longest-dated bond issue from a for Saudi Arabia (-$2.7 billion) and Kuwait (-$2.3 Latin American borrower, public or private. A $208 billion), however. Among other OPEC countries, million 10-year bond issue by Mexico City-Toluca outstanding BIS bank claims on Indonesia rose by Toll Road (MCTTR) may be a forerunner of similar $1.2 billion to a total of $34 billion. Among the issues for infrastructure projects in Mexico. The Eastern and Central European nations, there was a spread of over 400 basis points, however, was new bank lending to the former Soviet Union ($2.8 considerably higher than those applied to Mexican billion), which was backed by official guarantees. public sector entities. Argentina's Banca Rio de la Increases in outstanding deposits were recorded by Plata tapped the international capital market with a CSFR ($0.8 billion), the former Soviet Union ($0.7 3 June 1992 billion) and Hungary ($0.6 billion). Poland, on the Japanese bank claims on developing other hand, drew down its deposits with BIS countries continued to decline in fiscal 1991 ending reporting banks (-$0.9 billion). in March 1992. A 7 percent drop in claims was led by large sell-off by long-term credit banks (see Table Tunisia is returning to the international loan 3, and also Commercial Bank Provisioning and markets after a six-year absence. Arab Banking Capital Adequacy section of this issue of Quarterly Corp., Banque Nationale de Paris, Citicorp Review for a further discussion). Investment Bank and Societe Generale were jointly mandated to launch a balance of payments loan of $100 million which will be split into two tranches of Country Creditworthiness $50 million each. The first tranche with a five-year maturity will be priced at 1 1/8 percent over LIBOR and the remaining will be structured as a three-year Moody's Investor Service assigned a Baa3 credit at 7/8 percent over Libor. rating to the Republic of Turkey in May 1992. The Table 3: Japanese Banks - Developing Countries Debt, Fiscal 1990-91 (Yen in Biions) 1990 1991 No. of Amount as % of No. of Amount as % of Yr.-Yr. % Countries Loan Countries Loan Change Long-Term Credit Banks Industrial Bank of Japan 14 139.3 0.6% 11 92.0 0.4% (34.0)% Long-Term Credit 16 161.0 0.8% 15 139.5 0.7% (13.4)% Nippon Credit 15 84.0 0.7% 14 88.5 0.8% 5.4% Long-Term Credit Bank Total 15 384.3 0.7% 13 320.0 0.6% (16.7)% City Bank Dai-lchi Kangyo 18 199.8 0.6% 14 197.4 0.6% (1.2)% Sakura 24 235.1 0.6% 15 237.4 0.6% 1.0% Sumitomo 17 258.0 0.8% 10 213.1 0.6% (17.4)% Fuji 18 195.9 0.6% 11 192.2 0.6% (1.9)% Mitsubishi 22 186.3 0.6% 15 88.1 0.6% 1.0% Sanwa 16 192.7 0.6% 12 195.5 0.6% 1.5% Tokai 20 178.2 0.9% 14 181.7 0.9% 2.0% Kyowa Saitama 21 101.5 0.5% 18 99.6 0.5% (1.9)% Bank of Tokyo 28 410.1 3.2% 25 348.6 2.8% (15.0)% Daiwa 12 54.8 0.6% 12 59.1 0.6% 7.8% HokkaidoTakushoku 16 57.2 0.8% 11 53.7 0.7% (6.1)% City Bank Total 19 2,069.6 0.8% 14 1,966.4 0.7% (5.0)% Trust Bank Mitsubishi 18 75.7 0.5% 16 60.7 0.4% (19.8)% Sumitomo 14 75.3 0.6% 14 74.6 0.5% (0.9)% Mitsui 20 89.8 0.7% 18 86.5 0.7% (3.7)% Yasuda 13 82.3 0.8% 12 73.1 0.7% (11.2)% Toyo 16 49.3 0.6% 10 44.9 0.5% (8.9)% Chuo 16 33.2 0.7% 15 33.8 0.7% 1.8% Nippon 12 4.7 0.3% 11 6.9 0.4% 46.8% Trust BankTotal 16 410.3 0.6% 14 380.5 0.6% (7.3%) Al Major Banks 17 2,864.2 0.7% 14 2,666.9 0.7% (6.9)% Source: Japanese Ministry of Finance . 4 Quanerly Review country's first credit rating from Moody's would be comparable rating assigned by Moody's. The implied applied the forthcoming $200 million sovereign bond senior rating represents the sovereign ceiling (or issue by Turkey. The Baa3 rating represents the upper limit) for ratings of specific external debt issues of entities domiciled in Turkey. The country lowest mnvestment grade. According to the ratingha prvosybe asied yteS& a had previously been assigned by the S&P a agency, the investment grade for the country reflects "satisfactory' sovereign assignment. Te formal the strength of Turkey's economic performance in rating was sought by the government to broaden its recent years, the long-term effect of economic a to market in parnment to brollar reforms in the 1980s, and the declining--albeit still access to markets, in particular the U.S. dollar sizable--external debt burden. Subsequently, market, and improve its iterms by lengthening Standard & Poor's assigned a long-term senior maturities. external debt rating of BBBi (where Yi represents an implied rating) to Turkey in June. The BBB rating After placing Argentina's credit rating under given by the S&P is one notch higher than the review in May, Moody's upgraded the country's long-term bond by two notches to BI from B3 in July. The upgrade reflected. the rating agency's Table 4: Sovereign Foreign Currency Debt assessment of improved economic fundamentals in Long-Term Rating 1/ Argentina. Moody's took note of the country's fiscal Rating reform, better monetary discipline, and deregulation Iof the economy. Argentina B3 a/ Brazil B2 l China Baat S&P assigned a new EBB + rating to Hungary Czech & Slovak Federal Republic Bal in May 1992. The rating agency noted that the rating Greece Baals balanced Hungary's accomplislhments in managing the Hungary Bal transition to a market economy and a democratic India Ba2 ""/ system of government with many challenges inherent Korea Al in the process of fundamental political and economic Malaysia A3 reforms; the rating was also constrained by a heavy, Mexico Ba2 although declining, external dtbt burden. The rating Singapore Aal *1 agency also issued a positive outlook for Hungary's Thailand A2 *1 rating, supported by the current government's track Turkey Baa3 record and structural reform program, which enhance Venezuela Bal the prospects for a successful transformation to a market economy. 1/ Rating by Moody's Investors Service as of June 24, 1992. / Short-termn debt rated at P-1. **/ Short-tern debt rated at NP. Short-term debt of other NON-DEBT FLOWS AND FOREIGN DIRECT developing countries unrated. INVESTMENT a/ Under review for possible upgrade. Note: Rating systems for investment grade bonds are as follows Emerging Stock Market Activities Moodys S &P's 2/ Aaa AAA After a strong rally in the first quarter this Aal AA+ year, emerging stock markets retreated markedly in Aa2 AA the second quarter, following the revelation of trading Aa3 AA- irregularities in the Bombay St,ck Exchange and the Al A+ political uncertainty in Brazil. The IFC's emerging A2 A market composite index declined more than 9 percent A3 A- (on a U.S. dollar basis) durirg the second quarter Eaal BBB+ Baa2 BBB ending in June 1992, leaving the first six months' Baa3 BBB- performance barely positive (just over 1 percent). The Latin American index fell sharply (15 percent) in 2/ Same rating system used by most other rating agencies, the second quarter, triggered by a 30 percent plunge including, IBCA, Fitch, Duff & Phelps, and Japanese in Brazil. The Asia regional index lost 5 percent of rating agencies. its value during the same pe,riod, but individual country performance varied widely. June 1992 in April resulted in a 20 percent drop in the country's Following the spectacular performance in the composite stock index through May, but about half of first quarter (more than doubling of the market the loss was recovered in June. index), the Indian stock market staged a sharp downturn in April and the bearish trend continued The Philippine market advanced strongly throughout the second quarter of 1992 (see Figure 2). after the peaceful outcome of the presidential election The continuing market uncertainty caused by the in May. The 37 percent second quarter advance large-scale fraud in stock trades on the Bombay Stock pushed this year's gain to 46 percent. The market Exchange and the suspension of trading in most of was buoyed by investor optimism for economic June pulled its index down by almost 33 percent in recovery (despite the serious electric power shortage) very thin trading for the second quarter. The and anticipation of an improved business climate scandal's impact was reflected in the pricing of the under the new administration. The discount on the India Fund. The fund's discount (compared with the First Philippine Fund widened to 21 percent at the Net Asset Value--NAV) widened to 39 percent at end of June 1992. Significant gains were registered end-June, about 10 percent increase during the second in the stock markets of Pakistan (23 percent) and quarter. Indonesia (12 percent) in the second quarter, with a heavy trading volume: the heaviest monthly trading in The Korea stock market continued its two years was recorded in the Indonesian market. decline, falling another 11 percent in the second quarter and almost 24 percent for the year. The The Brazilian stock market experienced a Korean Stock Exchange (KSE) composite index fell sharp turnaround, especially since mid-May, and the below 550 level in June for the first time in almost 5 dollar-based IFC index plummeted almost 31 percent years. The prevailing bearish sentiment in the KSE in the second quarter. This contrasts with a 36 may be attributed to generally poor prospects for percent gain recorded in the first quarter of 1992, and economic performance, and high interest rates and appears to reflect several factors: the delay in inflation rates ahead of the presidential election late congressional approval of a reform package; poor this year. The Korea Fund remains the only country prospects for corporate profits (after a huge increase fund targeted at Korean equity securities and has been in workers' salary in May); and continuing high selling at premium (5 percent at end-June). Another inflation. The bearish sentiment prevailed in other emerging market in Asia whose index fell during the major Latin American markets. The Mexican market second quarter was Thailand. The civil disturbances suffered a 16 percent loss in the second quarter, Figure 2: Emerging Stock Market Performance, Through Second Quarter 1992 1/ 40 - 30 20 1 00 - ~-l -1 -20 -30 -40- Arg Bra Chi Indi Indo Kor Mex PaLk Phi Tha Tur Ven I Zn Through End-June _ Second Quarter only I / Percentage price change . Source Emerging Market Data Base, IFEC 6 Quanerly Review largely on account of market concerns over the fate New Equities, Quasi-Equities, and Derivatives of the North American Free Trade Agreement (NAFTA). After a strong rally in April through May, prices of Argentine equities plunged nearly 23 International equity issues by developing percent in June. For the second quarter as a whole, country corporations from LIatin America and Asia Argentine stock market index fell 9 percent, and the continued to expand, particutlarly in the form of premium on the Argentina Fund declined more than overseas depositary shares. The $930 million 5 percentage points to 6 percent at end-June. Chilean Telecom Argentina issue became one of the largest stock prices remained strong and made a modest gain American Depositary Receipt (ADR) deals brought to (3 percent) in the second quarter, reflecting the market in recent months. Like many other Latin improved inflationary outlook. American equity issues, the Argentine equity deal was linked to the government's privatization Despite a strong rebound registered in June, program. The second glob;9 equity offering of the Turkish stock market lost another 17 percent of Telefonos de Mexico (Telmex), following the its value in the second quarter. The June rally was successful $2 billion offering last year, was sparked by the reports on strong first quarter GNP completed in May 1992. Thea international tranche and lower inflation. The New York Stock Exchange- represented 8.65 million shares of American listed Turkish Investment Fund was traded at a Depositary Share (ADS) or almost $500 million. premium of 7 percent over the NAV at the end of Banacci, one of the largest financial services holding June, compared with 9 percent at end-March. In companies in Mexico, is expec,ted soon to launch a Eastern Europe, a sluggish performance continued on $1.5 billion global offering, consisting of a $450 the Warsaw Stock Exchange, whose index (for 11 million international tranche, an $800 million U.S. listed stocks) lost almost 22 percent for the first six tranche, and a $200 million doniestic offering. CCU, months of 1992, despite a 20 percent rally towards Chile's largest producer and bottler of beer, filed in the end of June. The Budapest Stock Exchange June with the U.S. Securities and Exchange (BSE) Index (for 23 listed stocks, as compiled by Commission (SEC) for an international equity Creditanstalt, Austrian bank) slipped marginally in offering later this summer. The offering, which is the second quarter, but gained almost 7 percent for expected to raise more than $70 million, is the the first half of the year. In late June, Hungary second ADR program for Chilean companies, launched a third tier to its stock market with the following the Telefonos de Chile in 1990. intention of increasing interest in the Budapest Stock Exchange (BSE) and draw over-the-counter trading The first international equity offerings by onto the market floor. The new rule is expected to Indian companies were male through private increase substantially the number of shares and bonds placements in Euromarket ui the form Global to be traded on the BSE. Depositary Receipts (GDRs) (see March 1992 issue of Quarterly Reuew that featured an article on ADRs Stock prices skyrocketed on the Shenzhen and GDRs). The $150 million issue of Global exchange in southern China, jumping almost 200 Depositary Shares (GDSs) was offered by Reliance percent during the second quarter of this year, Industries in May, followed by Grasim Industries' accompanied by a doubling of the number of listed $90 million issue in June. The two issuers, large stocks. It was reported that shares listed on the private sector companies in India, are two of four Shenzhen stock exchange could be made available for companies authorized by the hidian government to trading on the Hong Kong stock exchange through a borrow on international capital markets. Despite dual listing arrangement. Starting this year, continued volatility in the Indian stock market in the foreigners were permitted to invest in 'B" shares on wake of the recent Bombay stock market scandal, the the Shenzhen exchange, and so far five country funds two deals were successfully launched and were have been set up to invest in "B" shares for an oversubscribed. Market sources indicate that about estimated total of more than $200 million this year $1 billion of Indian equity-linked paper will be issued (see a related story in the following section of this on Euromarkets during the curr-nt year. Review). Market activities were also frantic in the Shanghai exchange, the other of the two exchanges in Despite the recent wealness in its domestic China, and showed extreme volatilities: the index stock market, the flood of Mexican equity issuance in rose more than 100 percent in one day when the international markets continmes unabated, with a restrictions on the daily price change were lifted in further two offerings set to add to more than $3 mid-May, but in two trading days the following week billion new equities that have been issued abroad this it fell 20 percent when authorities outlawed year. Mexico's TMM, the country's leading investment syndicates. maritime shipping company, raised roughly $80 7 June 1992 million through the sale of a 16 percent stake. The Industrial Company. Of the total share on offer, 15 global offering was split between a U.S. tranche million were placed with foreign investors and the (about 50 percent of the total offering), an remaining offered for subscription. Earlier in the international tranche (15 percent) and a local offering year, Shanghai Vacuum became the first Shanghai- (35 percent). A total of $110 million was raised in listed company to offer stock to foreign investors an international primary offering by one of Mexico's with a $70 million issue which was lead-managed by leading retailing firms (El Puerto de Liverpool) in SBCI Finance Asia. June, with the international tranche taking the form of GDSs. Market sources indicate, however, that there are limits how far investor demand will stretch for Foreign Direct Investment and Privatization Mexican equities. The Polish Private Equity Fund was The latest OECD data, released in June, established, in June 1992, jointly by the European show that total foreign direct investment (FDI) in Bank for Reconstruction and Development (EBRD) developing countries amounted to $28.4 billion in and the Polish-American Enterprise Fund (PAEF), 1991, an increase of 5 percent over 1990. But the with each contributing up to $50 million to the fund. figure includes FDI flows to offshore financial An additional $10 million investment will be provided centers: over the last several years roughly one third by Creditanstalt Bankverein. The new country fund of the total FDI in developing countries was flowing will target direct equity investments in small- and through offshore centers. FDI accounted for slightly medium-scale private sector companies in Poland. more than half of all private flows to developing The fund is targeted at international institutional economies. The OECD preliminary data suggest a investors, particularly in Europe and North America, total of $55.4 billion net private flows, including $5 interested in long-term equity investments in Poland. billion of grants by non-governmental organizations (NGOs). A total of five country funds have been According to a report published by Salomon launched in China since this year's opening up of Brothers in April, Latin America privatization deals foreign investment in that country. The two most have netted the governments of Argentina ($1.9 recent country funds were established in June by billion), Brazil ($1.7 billion), Mexico ($9.4 billion) leading Hong Kong-based securities' firms: the $90 and Venezuela ($2.3 billion) a combined total of million Wardley China Fund, managed by Wardley nearly $15.3 billion in revenues in 1991. On a Investment Services, will target international sectoral basis, telecommunications accounted for institutions and invest in listed and unlisted Chinese nearly one-third of the total, a trend that is continuing equities; and the $25 million China Fund under the in 1992. Salomon's survey also predicts that the management of Sun Hung Kai is aimed at the retail revenue generated through privatization programs will investment community. Also in June 1992, Jardine reach between $10-12 billion in 1992. Brazil is Fleming has filed a registration with the U.S. SEC expected to be most active as Mexico and Argentina for a proposed global offering of shares in a new wind down their programs. fund to invest in China region. The 6.6 million shares of initial public offering at a projected $15 Privatization efforts in the former Eastern each would raise about $100 million. The Jardine Bloc countries appear to be gaining momentum. In Fleming China Region Fund is a closed-end fund Hungary, the sale of the Grand Hotel Royal will which will make equity investments primarily in initiate the first hotel privatization under 'The First China, Hong Kong, and Taiwan. Privatization Program" (FPP). Together with $21.5 million each provided by the two buyers of the hotel, The first public offering of shares to foreign the IFC will provide $50 million in direct and investors since the internationalization of the syndicated loans and a $10 million subordinated Shenzhen stock market in 1992 was made with a 20 convertible loan, while the EBRD will provide an million 'B' share offering for Victor Onward Textiles additional $35 million, for its renovation and 8 Quarterly Revew upgrading. So far only two of the 20 companies coming months. Recently, 65 percent of Companhia targeted under the FPP have been sold, significantly Petroquimic do Sul (Copesul) was auctioned raising behind the original schedule envisaged in 1990. A $805 million, which was 30 percent over the simplified scheme has been introduced recently to minimum price. expedite the implementation of privatizationprograms by encouraging each state company to prepare its In June, the Venezuelan government opened own individual restructuring plan. the door to private investment in the country's oil industry for the first time since the petroleum sector Foreign investment in support of Romania's was nationalized in 1976. Five oil companies, extensive privatization plan, which covers more than including Royal Dutch Shell, won bids to develop 6,000 publicly-ownedcompanies, has been increasing five groups of inactive oil fields and plan to invest in recent months, rising to $118 million during the $480 million by 1996. Other international companies first six months of 1992, twice the pace in the same participating in the project were Teikoku Oil of Japan period a year ago. The Romanian Development and Benton Oil & Gas of the LUnited States. Agency also reported that total volume of foreign investment in Romania between January 1990 and the The privatization of YPF, Argentina's end of June 1992 amounted to $387 million, with national oil company, is expected to be launched Western Europe accounting for two-thirds of the early next year, subject to parliamentary approval. total. The United States with 12 percent and Middle The program is reportedly to be implemented with Eastern countries with 8.5 percent were also the sale of ADRs in New York and London in significant contributors. The trade and tourism January 1993, along with straight equity issues in sectors have been the main recipients of foreign Buenos Aires. These trancles, amounting to 51 direct investment so far. percent of YPF, are projected to raise around $4 billion in aggregate. The tender for the largest foreign investment deal in Czechoslovakia was awarded to Philip Morris, Activity on the Teheran stock exchange is the world's largest cigarette manufacturer and food gaining momentum paricicularly with the conglomerate. This also was the largest single U.S. announcement of the govemment's privatization direct investment in Eastern Europe to date. The program. At present, there are 129 companies listed, U.S. company will pay almost $400 million to the mostly newly-privatized firms in the chemical, textile Czech National Property Fund and make cash and other industrial sectors. The planned sales of investments for the partial privatization of Tabak, the shares in state-owned enterprises will be open to fastest growing Czech cigarette manufacturer. foreign investors, up to a maximum of 25 percent of their total capital, while domriestic investors will be Mexico privatized its eighteenth and last allowed to hold 34 percent of the equity. bank by selling 66 percent of the shares in Banco del Centro in early July 1992. The privatization will Indonesia took another significant step have raised a total of $12.9 billion when all payments toward deregulating its economy by permitting are made, more than originally expected. The banks foreign investors to hold 100 percent equity in new were sold for more than 3 times book value on companies. Full foreign ownership had been average and almost 15 times historical earnings, restricted to export-oriented industries. This policy significantly above the comparable rates in the United change applies to investments which have a paid-up States and Europe. capital exceeding $50 million. The first joint venture to qualify under the new rule would be a $1.6 billion Brazil's Sao Paulo state has announced its petrochemical plant to be constructed under full own privatization program directed at its public foreign ownership. services, and foreign participation in this program will be allowed. Projects coming under the Vietnam has instituted perhaps the most privatization program are mainly in the infrastructure liberal foreign investment guidelines in Asia in and energy sectors. Though the Government of recognition of the special incentives needed to attract Brazil's overall privatization program has had a difficult start the process is expected to accelerate in prvate foreign investment. Foreign companies will 9 June 1992 be allowed 100 percent equity ownership in domestic FSgure 3: Secondary Market Prces firms and complete repatriation of profits. Foreign (In percent of face value) investors also receive highly favorable tax benefits for investments in most sectors of the economy. 6s India's first privatization project gets 60 underway with Suzuki Motors Co. of Japan increasing its share in Maruti Udyog Ltd. from 40 to ss WY (%unt y 50 percent. Suzuki's holdings will be further s0 enhanced by the 20 percent increase in Maruti's total outstanding equities to $46.7 million (Rsl.32 billion). 45\ 40 SECONDARY MARKETS FOR DEVELOPING 35 - COUNTRY DEBT 30 26 Price Trends and Trading Activities 20 l969 1990 1991 1992 Following the bullish trend apparent in the first quarter this year, the price performance of the Smn hes werk. secondary market for developing country debt was generally strong in the second quarter, except for Brazil whose sovereign debt experienced a major setbck. hiswas he scon mciencein boutsixpnvatization programs has also spuffed demand and setback. This was the second incidence in about SIX cnrbtdt h eetpierly months of highly volatile prices for Brazilian debt. Unlike the previous case where the crash in Brazilian A substantial percentage gain was registered debt prices had contagious effect, prices of other by the Ecuador MYRA, setting a new record high in countries' debt instruments stayed firm and mostly the second quarter. The MYRA price closed at advanced throughout the second quarter. above 30, for the first time, compared with 22 at the The price of Brazil's benchmark MYDFA end of March 1992. The surge in the Ecuadorian (see Appendix Table 16 for the definition of debt price was triggered by the Central Bank's 100 benchtinstruments quoted in this section) percent payment of interest due for the period Feb- beunchmarkdely between almost May 1992, making the country current on its interest June. The MYDFA closed at 32 at the end of June, payments for the year and rasing the prospects for a compared with 38 at the end of March 1992 The Brady-type restructuring. Trading activities, dcmpeared with 38 latilitheyed o Mattrchb19. th however, were light. Peruvian restructured debt decline and high volatility were attributed to' perceived political instability. The price of Brazilian staged a strong comeback in the second quarter, reaching 18, representing more than 20 percent above deby at re announcemost of its secound tery' lomesnt the level at the end of the first quarter. The strong July at the announcement of the country's agreement performnance of Peruvian debt was attributed in part in principle with its commercial bank advisory tormarket Petan for iasinuse of debt committee o a Brady-syle deal,.to market expectations for mcreasmg use of debt conversion schemes in the country's privatization The secondary market for Argentine GRAs programs. was buoyant with trading at over 50 for the first time Secondary market traders report a continuing upon the release in late June of the basic terms for heavy trading of Brady bonds with generally rising the 1992 financing plan for the country's external debt (see Debt Relief section of the current issue of prcsithseodqae.TepieofMxos Par Bond managed a 2 percentage point gain and the Quarterly Review for a detailed discussion of the reached almost 65 (on the basis of bid) at the end of debt reduction agreement). After reaching a high of June. Venezuela's Par Bond posted an impressive 52.5, the GRA price closed the second quarter at 50, gain of more than 5 percentage points in the same about 7 points higher than the end-March figure. periof more t S per stag performane of The Argntine overnmnt's acive imlementtion o period, closing at 63. The strong performance of Brady bonds was supported by declining yields in the 10 Quarterly Reiew U.S. bond markets. Spreads of Mexican Brady inactive and their prices are largely indicative. bonds over U. S Treasuries continued to decline: yield on Par Bonds stood at just over 200 basis points at Among other less actively traded debt the end of the second quarter, compared with around instruments, Algerian debt suffered a large drop in 250 basis points at the end of March and 300 basis price, following a domestic upheaval in late June. points at the start of 1992. Despite the more than 50 The country's floating rate debt obligations were basis point improvement in the second quarter, mostly quoted at around 80 peIrcent of the face value, spreads on Venezuelan Par Bonds remain above 300 down from 87 before the incidence. Negative basis points. The price of the Philippine New Money sentiment was felt in Moroccan debt because of fears Bond surged at the peaceful outcome of presidential of political instability. Moroccan debt was traded at election. During the second quarter the New Money around 43 towards the end of the second quarter, Bond price rose 10 percentage points to 73. The about 5 percentage points below the level before the price of Nigerian Par Bonds changed little around 40 upheaval in Algeria. during the second quarter with an over 400 basis point spread over Treasuries. The trading volume of Since May 1992, OM Stockholm and OM Nigerian bonds continued to be very low. London began clearing optioIIs and futures contracts on the price index of developing country debt (called The second quarter of 1992 saw a reversal of LDCx index). The index which is used to track the the Polish debt (DDRA) price that has been in a secondary market for LDC bank debt is calculated downward trend since the middle of 1991. The three times a day based on price quotes from a DDRA price surpassed 27, a 8-month high, in early selected number of U.S. and European trading banks. June. The strong market activity was driven by Currently, the index is coniposed of 10 separate traders as they perceived the fall of the minority instruments from Argentinia, Brazil, Mexico, government would improve the likelihoodof a budget Morocco, Nigeria, the Philippines, Poland and resolution, possibly leading to the approval of the Venezuela. The derivative instruments on the index IMF lending package. The price of Yugoslav debt will be cash settled, and is the first time that a (NBY) suffered another major decline in the second standard contract based on the developing country quarter as domestic strife continued and sanctions debt market will be centrally cleared. remained imposed. The price declined to 15, roughly 10 percentage points lower than the previous quarter. A similar setback was experienced by the former New Developments in Debt Conversions Soviet Union (FSU) debt (1992-94 Direct Loans), the price of which lost another 10 points to just over a level of 20 at the end of the second quarter. Trading A series of new derivative securities for of Yugoslav and FSU debt instruments is extremely Argentina were launched recently, helping improve Table 5: Discounted Bank Debt Reduction and Trading Volume (Uss millions) 1985 1986 1987 1988 1989 1990 1991 A. Total Debt Reduction 742 1,601 7,633 18,177 13,329 28,811 5,342 Debt Equity Swaps 497 822 3,296 6,869 4,508 10,100 2,381 Local Currency Conversion 156 438 796 1,673 2,428 2,195 1,284 Debt BuybackIExchange 0 0 0 1,862 1,011 10,699 1,247 Local Currency Payments 0 63 87 3,431 2,269 5,482 300 Private Sector Restructuring 89 279 3,454 4,341 3,113 336 129 Source: Institute of International Finance. B. Secondary Market Trading 4,000 7,000 12,000 50,000 60,000 65,000 100,000 Source: IECDI volume estimates are based on interviews with traders. Because of the lack of a standard reporting system, these figures are rough orders of magnitude on trades which may reflect multiple accounting for underlying transactions. 11 June1 992 the liquidity of Argentine GRAs in the secondary debt converted at 24 percent of par, about twice its market. The first issue of one-year call warrants secondary market price. The donation is expected to worth $150 million of GRAs without interest was generate $2.8 million in funds and is likely to be the made by J.P. Morgan. Originally planned for $100 largest debt-for-nature swap arranged for any single million, the issue was increased due to high demand. These warrants mature on April 30, 1993 and carry country. So far, more than $70 million ($121 million an exercise price of 41.5. The second issue by in face value debt) of environmental funds has been Merrill Lynch for $200 million have a strike price of channeled through debt-for-nature conversion 43.12 and maturities of 9 and 18 months. The programs since such swaps were initiated in 1987. Merrill warrants are also backed by GRA bonds, while the Morgan issue is unbacked and will be settled for cash. In addition, Manufacturers Hanover OFFICIAL AND MULTILATERAL FLOWS Ltd. (London) has offered one-year call warrants on $100 million of Argentine GRA debt. The issue of 400 European-style warrants each represent $250,000 Lending and New Initiatives by IFls face value debt without interest have an expiration date of June 2, 1993, and carry a strike price of 42 percent of par. The World Bank and the IMF received a number of new members during the second quarter of Paribas Capital Markets launched its first 1992. Among the newly created republics of the issue of call warrants on Brazilian MYDFAs. The former Soviet Union, Russia joined IBRD and IDA European-style options have a strike price of 40, on June 16. With 2.99 percent of the total share, which was the secondary market price of MYDFAs Russia became the seventh largest shareholder of the when the issue was launched. The instrument could World Bank. Earlier on May 29, Switzerland has be appealing to both investors who wish to hedge officially joined the World Bank group as a full price risk inherent in the MYDFA portfolios and member of IBRD, IDA, and IFC. Prior to the speculators who seek to leverage investment returns formal membership, Switzerland had been a member from a price appreciation in the event of a Brady-type in observer status for a long time. deal being approved before the MYDFAs expire. If such a debt conversion were to take place, the During the fiscal year ending in June 1992, warrants will become a call on collateralized par IBRD committed a total of $15.2 billion loans to bonds issued in exchange for the MYDFAs. member countries and disbursed $11.7 billion. Out of the total committed, Latin America region was the Brazil's National Monetary Council has largest recipient with $5.3 billion, followed by East given its approval for private sector interest rate Asia and Pacific ($4.4 billion), Europe and Central swaps, and the first such deal was arranged by Chase Asia ($2.1 billion), South Asia ($1.3 billion), Middle Manhattan for a $22 million swap for Bayer do East and North Africa ($1.3 billion), and Sub- Brasil, a subsidiary of Bayer AG, Germany. Brazil Saharan Africa ($0.7 billion). Loan commitments also approved its first debt-for-nature swap worth and disbursements by IDA reached $6.6 billion and $2.2 million, the proceeds of which will be used to $4.8 billion, respectively, in the latest fiscal year. provide funding for Fundacao Pro-Natura (Funatura), Sub-Saharan Africa ($3.2 billion) represented almost a private conservation group. Brazilian bank debt half of the IDA commitments, followed by South will be converted at par into long-term dollar-indexed Asia ($1.6 billion) and East Asia and Pacific ($1.1 bonds with a 6 percent coupon rate. To minimize the billion). inflationary impact of swaps, the Government of Brazil has also set a ceiling of $100 million in face The IMF has agreed to release a $1 billion value debt which can be converted under such swap credit for Russia in the near future in support of the programs. country's economic reform. The agreement on the first tranche would be part of the IMF's $4 billion J.P. Morgan has donated $11.5 million of assistance package for Russia. The World Bank is Bolivian debt for conservation and environmental also planning to lend up to $5 billion to Russia in the programs in Bolivia. The Bolivian debt will be next two years. The first half of this package would 12 Quairterly Review involve loans to finance essential imports, followed be used by the National Bankc of Public Works and by funding of structural reforms in the oil and Services to purchase $120 mnillion of debt bonds, agriculture and transport sectors. which will be sold to the Mexican government at agriculture and transport sectors.their nominal peso value. Tlhe $200 million cost of the environmental program will be met by an The European Investment Bank (EIB) is additional $80 million to be provided by the considering a proposal to lend to Latin America and go nt. to countries which have agreements with European g Community members. A maximum of Ecu25O The Asian Developiment Bank (AsDB) is million (about $330 million equivalent) annually will reportedly seeking its fourth general capital increase be available under this proposal for a 3-4 year period in the range of $25-$30 billion. A shareholder for specific projects in the Latin American region, consensus on the size and timing of the capital which has so far been excluded from EIB lending. A increase has not yet emerged. The combined net guarantee scheme for these loans is yet to be worked flows from the AsDB and the Asian Development out and a decision will be made shortly to determine Fund reached an estimated $2.3 billion in 1991. if these guarantees will be made from the EC's own budget. The Global Environment Facility (GEF) received a strong endorsement from the Earth The Inter-American Development Bank Summit in June. Industrial countries pledged to (IDB) announced in late June that it will lend Mexico substantially increase their contributions to the GEF $100 million to support a debt-for-nature swap aimed with fresh financing. The projected level of its at reforestation and pollution control. The funds will replenishment could go up to a range of $2 billion to Table 6: Multilateral Development Banks: Comparison of Loan Charges 1/ (Percent) Structure of Loan Charges MDB ADB AFDB IBRD A: Lending Rate a/ Old: 7.94 b/ Old: 7.58 New: 7.92 6.51 8.03 New: 7.60 (variable) (variable) (variable) (variable) B. Spread on cost base 0.50 0.40 0.50 0.50 c/ (variable) (variable) (fixed) (fixed) C. Comnniitment Fee 0.25 d/ 0.75 e/ 1.00 0.25 f/ D. Other Service Charges none g/ none none none g/ 1/ As of July 1, 1992 (IDB and AFDB rates are as of January 1, 1992). a/ The variable lending rates are set serni-annually. The rate differential reflects, among other factors, the diff rence in currency composition of the borrowing pool. For example the ADB's pool is comprised mostly of low- nominal- rate currencies such as Japanese Yen, whereas the IBRD's pool is more balanced in terms of major currencies. b/ The lending rate is fixed at the time of the disbursement. c/ For those borrowers eligible for interest rate waiver, the spread could be effectively reduced to .25 percent for fiscal year 1992. d/ A one-semester reduction of the cornmitment fee to .25 percent was approved for the second half of 1991. el A .75 percent commnitment fee is applicable to the following proportions of the loan amount less the cumulative disbursement: 15 percent in the first year; 45 percent in the second year; 85 percent in the third year and 100 percent in the fourli year and beyond. fl A one-year reduction in the commitment fee to .25 was approved by the Board for fiscal year 1992. While contractually the commitment fee remains at .75 percent, the fee can be reduced to a minimum of .25 percent on an annual basis by Board decision. g/ This fee is currently set at zero. Note: The IMF's interest charge for ordinary resources (such as stand-by credits or compensatory and contingency financing facilities) was 6.32 percent at the end of June 1992, including 1.08 percent of refundable rate. The charge (net of the refitndable rate ) is derived from 97.9 percent of prevailing SDR rate. IMF's concessional rate for SAF or ESAF credits was 0.5 percent as of end - June 1992. Source: FRS and IECDI updates. 13 June 1992 $4 billion. The GEF was established in 1990 as a and other Japanese financial institutions for financing three-year pilot program with a $1.3 billion fund to investments in environmental protection by Brazilian help developing countries cope with environmental companies. This loan represents the first Japanese problems that transcend national boundaries. The Eximbank loan to Brazil in seven years. GEF is co-sponsored by UNDP, UNEP, and the World Bank. The Kingdom of Bhutan became one of The U.S. Eximbank provided a $650 million the latest GEF recipients with a $10 million grant from the GEF in May. The grant will be used to set up a trust fund that will provide long-term financial Table 7 : Stance of Export Credit Cover 1/ support for Bhutan's environmental protection programs. To date more than 80 percent of the GEF Score Score funds that have been allocated are for projects dealing Country MLT 2 ST 3/ with global warming and biodiversity. China 94 85 Czechoslovakia 94 84 Hungary 79 76 Bilateral ODA and Export Credits India 74 90 Indonesia 71 69 Korea * 79 85 Aggregate official development assistance Romania 74 77 (ODA) from DAC members in 1991 amounted to Tunisia 71 85 $58.2 billion, compared with $55.1 billion in 1990. Algeria 68 58 The preliminary OECD data show a 2 percent cihile 56 80 increase in 1991 ODA in real terms. Most donors, Colombia 56 80 except for Italy and Belgium, increased their aid to Ghana 47 59 developing countries. The United States was the Irn 63 85 largest ODA source country in 1991 with $11.5 Kenya 46 59 billion (including about $1.8 billion military debt Mexico 56 73 cancellation), followed by Japan ($11.0 billion), Morocco 57 71 Germany ($6.8 billion), and France ($6.7 billion, Pakistan 56 75 excluding DOMITOM). The ODA/GNP ratio Philippinea 60 79 remained unchanged at 0.34, and Nordic countries SouthAfrica 43° 61 continued to represent the highest ODA/GNP ratios. Turkey 62 56 Non-OECD aid appears to have declined Venezuela 67 80 substantially, and is estimated at $4.2 billion, the Zimbabwe 65 73 lowest level ever recorded. Argentina 40 70 Total net export credits extended by OECD Brazil 31 55 members amounted to $3.2 billion in 1991. While Ecuador 23 67 the 1991 figure was considerably lower than in 1989 Egypt 29 95 ($9.1 billion) and 1990 ($4.6 billion), it was the third USSR (Foa r) 30 332 consecutive year of positive net export credit flows to developing countries. The increase in export credits Angola 13 41 over the last few years may be attributed to several Bulgaria 9 21 factors, including: many export credit agencies Cote d'lvoire 4 63 (ECAs) have moved to a system of risk-based fees, Iraq 0 0 so that export credit cover is now available, albeit at Peru 0 36 higher cost, to countries perceived as risky; and Syria 0 4 ECAs are providing a larger share of guarantees for Yugoslavia (Former) 3 9 loans to private sector borrowers but without debtor Zambia * 0 0 country government guarantee, reflecting the growing 1/ As of end - March 1992. role of private sector in many developing countries. 2/ Medium to long-term . 3t Short-erm . */ As of end - December 1990. Brazil's Banco Nacional de Desenvolvimento Economico e Social (BNDES) received $300 million Sources: Berne Union and IECDI . in untied loans from Japanese Export-Import Bank 14 Quarterly Review guarantee facility for aircraft financing to Air India. to developing country debt declined by 7 percent to The deal arranged by ANZ Bank and Citibank is Yen 2.7 trillion for fiscal year 1991 ending in March considered to be particularly significant because of 1992, representing 0.7 percent of total loans India's lengthy absence from the medium-term loan market. The two-part deal consists of a 12-year outstanding posi re as due inr parthto portion carrying a margin of LIBOR plus 87.5 basis rsales of outstanding positions and the strengthened points and a commercial facility with a maturity of 5 currency, which resulted in a marginal increase (by years and a margin of one percentage point over Yen 8 billion) in reserves. City banks accounted for LIBOR. the largest declines in exposure to developing countries. The Former Soviet Union has been added to the list of countries whose outstanding debt is COMMERCIAL BANK PROVISIONING AND CAP1TAL ADEQUACY Table 8: Capal Adequacy and Reserves 1/ Risk ciatscd LDC capta Ratios Coawro Provisioning and Reserves Ticr I Tot Ausdrlia ANZ Banking GKs 6.0 9.9 63 Cwtmamwcalth Bank 6.3 8.7 NA Developing country exposure in bank Naticeal Alia 7.6 11.4 NA Wspesc Ranki 6.6 10.4 NA portfolios continued to decline in 1991, and reached Br&inl a level that is considerably below the level recorded Abbey Nationl 11.0 12.6 NA Barclays Bank 5.9 8.7 68 at the start of the debt crisis. Total developing Lul Bank 6.2 9.7 73 MWIndlaa Bank ..5 10.3 53 country loan as a share of equity for US banks was N Batw Wnktmimte 55 9.6 65 76 percent (compared with 280 percent in 1982), for Cad. Bank of MosartsI 6.3 8.8 64 UK banks 74 percent (275 percent in 1982), for CadiaM hrasi 6.0 9.0 100 Canadian banks 45 percent (195 percent in 1982). National Bank 5.3 8.9 58 Rcyl Bank 6.1 9.4 70 The lower exposure ratios combined with larger loan Scor;abak 5.7 8.6 64 loss provisions have reduced the risk of once feared Toronto Dfnin 7.2 8.7 NA large-scale bank failures. Nevertheless, international BNP NA 8.0 60 Panbu ~~~~~~7.0 8.1 78 bank lending in general has been affected by c..it Lyo NA 8.4 60 increasing constraints on bank capital imposed by Soci GWersie 4.4 8.0 65 capital adequacy guidelines. While some banks C n1zrk 4.6 8.0 60 appear to be resuming the developing country Dusdr Bank 8.0 10.7 76 Deoodwr Bnik 5.5 10.0 70 fmancing busmess, they are increasingly doing so in Hng IC l highly selective way: in terms of both type of HSBC Holdin4 6.5 NA so borrowers and type of financing. The attractiveness at-l,I Kno Bank 5.0 8.8 30 to banks of syndicated loans to developing countries Bank of Tolo 4.1 8.1 30 Sakur Bank 3.7 7.4 30 has been reduced by factors such as: a desire to avoid Mituldislli BOW 4.4 8.7 30 F4i Bank ~~~~~5.1 9.1 30 a repeat of their experience of the debt crisis in the Ftyi B .ak 5.6 8.9 30 last decade; and, provisioning requirements for loans Sawn Bak 5.1 8.5 30 bid. Bank of Jap NA NA 30 to borrowing countries with past debt-servicimg SpWl difficulties. For these reasons, banks are shifting to Bao Bibow Vjzcya 10.3 11.8 75 short-term trade and project financing and fee-based Baso San&r 9.4 13.3 100 transactions, where they have a direct link to a Bano Cedtralip NA NA S0 Switlabd customer, a better debt servicing record and security, cs Holdig NA 2.0 65 Swim Ba&kCorp NA 11.5 65 and these are likely to be the main forms of new S NA 12.0 70 commercial bank lending to developing countries. Untd Stats MsO Banlirer Trtust NY 6.1 10.9 43 Against this background, the current issue of CitikOrp 3.7 7.5 14 Quarterly Review features an article on short-term J. P. Morgan A Co. 6.9 10.7 57 commercial bank lending to developing countries. 1/ In percentage as of December 31, 1991. Source: Salomon Brothers. The total exposure of major Japanese banks 15 June 1992 reserved at the special rate of 30 percent, but the interest rates enabled banks to widen their interest total number of countries being provisioned against rate margins, which more than offset large loan has declined to 14 from 17 in the previous year. losses (particularly for commercial real estate). Standard Chartered Bank made an additional provision of $90 million (equivalent) to cover potential losses from securities deals made by its DEBT RELIEF AGREEMENT UPDATE Bombay branch in the wake of the Indian stock market scandal. The other foreign bank involved and likely to face similar large losses is Australian-owned Official Creditors ANZ Grindlays. Only two Paris Club agreements were signed during this quarter: Uganda (June 17) and Togo (June Capital Adequacy 19). These countries, identified as severely indebted low-income countries, received enhanced Toronto terms. On June 22, official creditors agreed to defer Japanese city banks' Tier 1 ratio improved principal payments, pending rescheduling, on the debt to 4.57 percent in March 1992, from 4.47 percent six of the former Soviet Union (FSU) that fall due months ago. Nevertheless, total capital adequacy through September 30, 1992. ratio fell 30 basis points to 8.21 percent in March 1992: large drop in Tier II capital ratio in the second Debt servicing arrangements for the former half of the fiscal 1991, due to the precipitous stock Soviet Union are now governed by four agreements. market fall which reduced gains on securities, was not fully offset by the new subordinated debt issues (a) Memorandun of Understanding on the amounting to Yen 1.47 trillion. As of March 1992, Debt to Foreign Creditors of the Union of Soviet Sakura bank was the only city bank whose total Socialist Republics and its Successors, October 28, capital ratios fell below the required minimum of 8 1991 (The Memorandum of Understanding). Here, percent. Despite the continuing weakness in the the signatory FSU countries agreed with G-7 Tokyo stock market and lower operating profits governments that (a) the signatory countries would be anticipated for this, Japanese banks are generally 'jointly and severally' responsible for FSU debt, (b) expected to meet their 1993 risk-based capital ratio that the signatory countries would appoint the requirements. However, asset growth is likely to be Vneshekonombank of the USSR (VEB) as the "debt restrained, particularly given the earnings impact of manager' with respect to FSU debt, and (c) that VEB their large non-performing domestic portfolios. would inventory and negotiate this debt on behalf of the signatory countries. The rationale for the Total capital as a percentage of U.S. banks' Memorandum of Understanding is that the foundation risk-weighted assets continued to climb, reflecting for restructuring arrangements should be the record earnings during the first quarter of 1992. The acceptance of collective responsibility for FSU debt BIS total capital adequacy ratio of money center and a single agent to represent all countries. banks increased to over 12 percent, about 140 basis However, only ten of the fifteen FSU countries points higher than six months ago. Tier I ratio also signed the Memorandum of Understanding. Initially, continued to be well above the minimum 4 percent, there were just eight: Armenia, Belarus, Moldova, reaching 7.29 percent in March 1992. Citicorp Kazakhstan, Kirgizstan, Russia, Tajikistan and remains the only major U.S. bank whose capital Turkmenistan. Ukraine signed on March 18th, and ratios are close to the minimum requirements: its this gave the Memorandum more strength. On May total and Tier 1 ratios were 8.12 percent and 4.06 28th the Memorandum was signed by Georgia. percent, respectively, as of the end of the first quarter. The total first quarter earnings of U.S. (b) Treaty on the Assignment ofForeign Debt commercial banks reached $7.6 billion, a 36 percent and Assets of the USSR, December 4, 1991 (The increase from the previous quarter. The lower Debt Allocation Treaty). This Treaty fixed the 16 Quafedy Rew- percentage shares of each Republic with respect to external debt." Together, Estonia, Latvia and paying FSU debt service obligations. The Treaty Lithuania had been allocated 3.2% of FSU debt by assigned 61.3% of FSU debt to the Russian the Debt Allocation Treaty. The position of Federation and 16.4% to the Ukraine. (See Table 9 Azerbaijan, Moldova and Uzbekistan is ambiguous: for details). The Treaty also created an Inter-State they have neither signed the I)ebt Allocation Treaty Council for the Supervision of External Debt nor, like the Baltic countries, disclaimed liability. Servicing and the Utilization of Assets (ISC) to Uzbekistan has objected to its share as excessive. manage FSU debt. The Treaty further required the Together, they account for 6.2 % of the allocation. In Republics to set up special accounts in VEB to make another shift, Armenia, whicji had signed both the advance payments according to an agreed schedule. Memorandum of Understanding and the Debt It was signed only by Armenia, Belarus, Georgia, Allocation Treaty, has asked ]Russia to take over its Kazakhstan, Kirgizstan, Russia, Ukraine and liability for FSU debt in exchange for its claims on Tajikistan. However, the signatory countries FSU assets. Turkmenistan and Kirgizstan are accounted for about 85 percent of FSU debt. negotiating a similar arrangement with Russia. The three Baltic Republics, in a joint (c) Inter-Republican Debt Management statement by their heads of state on March 16th, Agreement, March 13, 1992. The Prime Ministers of announced that "The Baltic States are not legal nine FSU republics, including the Ukraine, agreed successors of the former USSR and therefore cannot that the ISC will have three co-chairmen. Two seats take the responsibility for servicing and paying off its will be permanent (Russia and the Ukraine), and the Table 9: Siares of FSU Republks in FSU Debt (U.S. Dollars, billions) Share Debt as of Debt as of (Percent) 1/1/91 5/31/92 Armenia 0.86% 0.5 0.6 Azerbaijan 1.64% 0.9 1.2 Belarus 4.13% 2.3 2.9 Estonia 0.62% 0.3 0.5 Georgia 1.62% 0.9 1.1 Kazakhzstan 3.86% 2.2 2.7 Kirgizstan 0.95% 0.5 0.7 Latvia 1.14% 0.6 0.8 Lithuania 1.41% 0.8 1.0 Moldova 1.29% 0.7 0.9 Russia 61.34% 34.2 43.4 Tajikistan 0.82% 0.5 0.6 Turkmenistan 0.70% 0.4 0.5 Ukraine 16.37% 9.1 11.6 Uzbekistan 3.27% 1.8 2.3 Total 100.00% 55.7 70.7 Not included: Lend-lease debt in convertible currencies $700 Liabilities to ex-Comecon countries (in transfer rubles) $17,300 Net liabilities on clearing and bater accounts Cm transfer rubles) $2,700 Note: Shares of FSU republics in debt as of January 1, 1991 and as of May 31, 1992 are calculated on the basis of Debt Allocation Treaty coefficients. Debt outstanding is based on commitments through October 31, 1991. Source: Percentage shares: Debt Allocation Treaty of December 4, 1991. Debt outstanding: 1/1/9 1, Debt Allocation Treaty; 5/31/92,VEB, Presentation to the External Creditors of the Former USSR, June 18, 1992. 17 June 1992 third rotating. This position is currently held by with the Creditor countries or with commercial Kazakhstan. Voting powers are proportional to the banks. At the same time arrears on debt excluded members' shares in FSU debt. Policy decisions from both agreements (mainly overdue import require a majority of 80 percent. payments) stood at $4.9 billion at December 31, 1991. From January 1 through May 20, VEB had received only $500 million in payments for debt The locus of the FSU debt rnanagement w'ill service and these came exclusively from the Russian be in the Debt and Assets Management Directorate of Federation. VEB paid a net total of $674.1 million VEB (the 'Debt Manager' in the Memorandum of in respect of the FSU net debt obligations, meeting Understanding). Assets and liabilities of this only 5.4 percent of total obligations due during this Directorate will be maintained separately from the period. As a result arrears accumulated rapidly and other operations of VEB. The Head of this as of June 1st stood at $8.5 billion. Directorate was appointed by the ISC on May 28, 1992. He reports directly to the ISC, and he is Debt service payments were directed mostly independent of the VEB Board of Directors. to service grain credits signed since the cut-off date on deferred debt. Very little was paid on debt In the March 13th Agreement, the ISC also service towards the arrears to official creditors or to created the Supervisory Council headed by the commercial banks. In the creditors' view, available sums for debt service payment should have been Expecuivesecretary asul ecits plosermantrol bod. the allocated to all creditors in proportion to amounts Supervisory Council exercises close control over the due. operations of the Debt Manager. All signatories of the Debt Allocation Treaty should be represented in The creditors met with VEB representatives the Supervisory Council. The Council reports to the on March 31st and again on June 22nd. In the ISC on the monthly basis. On May 28,1992 the March 31st meeting, the creditors agreed to extend Agreement was signed also by Georgia. the deferral agreement for three months (instead of for the balance of the year, as had been contemplated (d) Agreement on the Deferral of the Debt by the Deferral Agreement). In the June 22nd meeting, the deferral was extended through of the Union of Soviet Socialist Republics and its September 30th. However, they expressed their Successors to Foreign Creditors, January 4, 1992 disappointment that arrears continued to build up. In (The Debt Deferral Agreement). Applying the new the press release of this meeting, the creditors stated institutional arrangements described above, official ". . . that addressing this problem was critical for creditors arranged for a debt deferral. The facilitating new money from Creditor Countries." agreement was between VEB, acting in its capacity as The creditors also objected to the continued selective Debt Manager under the terms of the October 1991 payment of creditors, stressing that ". . . the Memorandum of Understanding, and seventeen principle of equality of treatment was crucial for a confident relationship with the Debtors." The creditor country governments, called "The Group of representativeshof the d ebtor s pe e Creditor Countries of the Former USSR and its representathves of the debtor countses pledged to Successors". The Agreement, as signed in January, rectify both problems. deferred principal payments falling due during the The Togo and Uganda agreements (June 19 year 1992 on long-term officially guaranteed private and June 17, respectively) continued the enhanced export credits and loans from creditor country Toronto Terms Agreements that had been introduced governments contracted prior to January 1, 1991. in December 1991 (see March 1992 issue of the Arrears on short-term debt as of December 4, 1991 Quarterly Review for details of this arrangement). were to be paid in two installments (June 30, 1992 Both agreements consolidated debt service payments and November 30, 1992), and arrears on all other falling due between July 1, 1992 through the end of debt were to be repaid by March 31, 1992. the respective IMF ESAF programs (November 1992 Implementation of the deferral agreement beyond for Uganda and November 1993 for Togo). March 31, 1992 was conditional upon a review of However, each agreement will be extended performance through that date. automatically for one year if the IMF approves a continuation of the existing ESAF programs. Performance under this arrangement has been unsatisfactory from the creditors' point of view. Like previous enhanced Toronto Terms On December 31, 1991 there were no arrears on agreements, the creditors will reschedule official medium and long-term debt covered by agreements development assistance on highly concessional terms 18 Quarterly Revew and for restructuring non-concessional debt will On June 14, an agreement was reached on choose between 50 percent debt reduction (in present the terms of the Argentine debt reduction agreement. value terms) and equivalent non-concessional The agreement dealt with past due interest obligations rescheduling. Both agreements call for the review of of about $7.9 billion and lorg-term debt of about the outstanding stock of debt after a passage of three $23.1 billion. Regarding the past-due interest, $0.4 years. But there will be one more Paris Club billion would be paid by Argentina on the closing agreement before this time, covering the years date for the agreement. At the same time, there following the expiration of the current consolidation would be an exchange of $0.3 billion of arrears for periods. zero-coupon notes with a 4 to 6 year maturity. The remainder would be exchanged for 12-year bonds, paying LIBOR plus 13/16 percent. The notes would Commercial Creditors be collateralized, but not the b-onds. The terms are somewhat simpler than as The major recent developments were the shown in the proposal published in the Quarterly preparation of a Terms Sheet for Argentina (June 24) Review of March 1992. Creditors would choose and completion of an Agreement in Principle for from only two options for the long-term debt. (See Brazil (July 9). Table 10). There would be par bonds (of the front- loaded interest rate reduction type). Interest rates Table 10: Argentina, DDSR Agreement (Term 9Seet) - June 23, 1992 Maturity Interest Instrument I (years) (Percent) Comments A. Debt and Debt Service Reductions - Front 30-yr bullet Yr.1: 4.00% 12-month rolling interest Loaded Interest Rate Reduction bonds (FLIRB) Yr.2: 4.25 % guarantee, collateralized with U.S. Par Exchange Yr.3: 5.00% Treasury zero-coupon securities. Yr.4: 5.25% Non dollar. costs: equivalent Yr.5: 5.50% interest rates and collateral. Yr.6: 5.75 % Yr.7 to maturity: 6 % Discount Bonds (15 % discount on face value at 30-yr bullet LIBOR + Principal collateralized with zero- eligible debt) 13/16% coupon U.S. Treasury Securities; also 12-month rolling interest guarantee. Eligible for tender on privatization program. B. Past Due Interest (PDI estimated at $7.9 billion) - Cash payment 4-6 yrs. bullet Payment on closing date. ($0.4 billion) - ($ 0.3 billion) PDI Note exchange - (remainder) PDI Note Exchange 12 years LIBOR + No collateral. Rising amortization Maturity. 3 13/16 % schedule: Instalments 1-7 = 1%; years grace. instalment 8 = 5 %; Instalments 9 -19 = 8%. Note: The discount and par bonds are both available in DM. Interest on DM par bonds will be 5.87%. Source: Republic of Argentina, 1992 Financing Plan, June 23, 1992. 19 June 1992 would start at 4 percent and build-up to 6 percent Deposit Facility Agreement Debt," resulting from after six years. Another option will be discount previous reschedulings. Creditors may choose from bonds (35 percent discount), yielding a market six options, which are shown in Table 11. This is interest rate. Both bonds would be repayable in a 30- the most complex menu of all the debt reduction year bullet matunty. The discount bond would have a principal guarantee (but not the par bond); both agreements to date. bonds would have a rolling 12-month interest guarantee. The final agreement is expected to be two oons represet exchag for signed in September and an exchange of instruments collateralized bonds, both with a 30-year bullet is aniiae. yn-eebr maturity. The first provides debt reduction with a 35 percent discount bond. The second provides debt The agreement with Brazil covers reduction with a step-down/step-up interest rates, approximately $44 billion of debt to commercial fixed at 6 percent per annum from the 7th year to banks. The bulk of this sum represents 'Multiyear maturity. Collateralization arrangements are the Table 11: Brazil: Agreenent in Principle - July 9, 1992 Instrument Maturity (years) Interest (percent) Comments A. CoUateralized discount bond 30 year bullet LIBOR + 13/16% Principal collateral: (35 % discount on full value of 30-year zero coupon Treasury obligations. eligible debt) Interest collateral: 12-month rolling interest guarantee Collateral payments may be phased over a 2-year period B. Collateralized par bond on the 30-year bullet Yr I : 4.00% Same collateralization arrangements reduced interest rates Yr 2 : 4.25% as in-A' above. Yr 3 : 5.00% Yr 4 : 5.25% YrS : 5.50% Yr 6 : 5.75% Yr 7-30: 6.00% C. Front-loaded interest reduction 15-year maturity; Yrs 1-2: 4.00% Principal collateral: bond (FLIRB) with temporary 9-years grace Yrs 3-4: 4.50% None interest relief Yrs 5-6: 5.00% Interest collateral: Yrs 7-15: LIBOR 12-month rolling interest guarantee + 13/16% for six years D. New Money with conversion bonds (1:5.5 ratio) Conversion bonds 18-year maturity; LIBOR + 7/8% 10 years grace New money bonds 15-year maturity; LIBOR + 7/8% 7-years grace E. Restructuring with temporary 20-year maturity; Yrs 1-2: 4.00% Difference between LIBOR + 13/16% interest relief 10 years grace, with Yrs 34: 4.50% on the reduced rates from years 1-6 increasing principal Yrs 5-6: 5.00% wiUl be capitalized. instalments Yrs 7-20: LIBOR This option will be in loan form. - 13/16% F. Front-loaded interest reduction 20-year maturity: Yrs 1-2: 4.00% Difference between 8% and the reduced bond (FLIRB) with 10 years grace Yrs 3-4: 4.50% rates from years 1-6 will be capitalized. capitalization of temnporary Yrs 5-6: 5.00% interest relief Yrs 7-20: 8.00% Source: Bank Advisory Committee for Brazil Press Release, July 9, 1982. 20 Quarterly Reiew same for both bonds: principal will be collateralized raise its cash interest payments from 30 percent to 50 with 30-year US Treasury obligations; there will be percent of amounts falling due, retroactive to July 9 a rolling 12-month interest guarantee. Collateral will following Brazilian Senate appxoval of the agreement. be phased in over a 2-year period depending upon The Brazilian Senate must ratify this agreement; availability; in earlier Brady deals, it has been paid-in debate is planned for August. IMF and World Bank at settlement. financing of collateral has been requested; Brazil must perform satisfactorily under its economic A third option is a front-loaded temporary program to be eligible for this financing. interest-reduction bond, which will have a 15-year maturity including 9-years grace. From years 7-15, interest will be LIBOR plus 13/16. There will be a Regarding debt of the FSU to commercial 12-month rolling interest-guarantee covering the first byuanks, the banks have rolled-over FSU debt quarter- six years of this bond, the period when interest rates by-quarter. The first arrangements deferred principal will be reduced by 4 to 5 percent. There is no due in December 1991 and in the first quarter of principal collateral. 1992. An arrangement agreed upon at the end of March similarly deferred second quarter 1992 The fourth option is new money combined principal payments. A meeting is expected in with conversion bonds. Brazil will exchange 5.5 September to discuss third quarter principal. dollars of debt for conversion bonds for every dollar However, no interest has beerL received by banks on of new money. The maturity of the conversion bonds the deferred obligations. Likle the official creditors, is 18 years (including 10 years of grace); the maturity the commercial banks wish to see the matter of of the new money bonds is 15 years (including 7 interest payment arrears addressed, to have an audit years of grace). Interest on both bonds will be of VEB and to see progress in FSU governents LIBOR plus 7/8 percent. allocating a significant portion of foreign exchange earnings for debt service paymlents. The final two options offer temporary interest rate reduction but require that the difference Implementation of the Philippine's Brady between the final rates of interest and the reduced deal has been postponed until after the election and interest rates of the first six years be capitalized. the formation of a new government. However, an The first option (item E in Table 11) does not involve a loans for bond exchange, but restructures loans, agmmen is ctd to ybe completed These loans will continue to bear interest at market summer. On May 14, a cash buyback was completed rates: LIBOR plus 13/16 percent. The other option of $1.3 billion of previously rescheduled debt under is to exchange debt for front-loaded interest rate the terms of the 1989 debt reduction agreement, reduction bonds which will bear interest at a fixed which granted the necessary waivers for further rate of 8 percent after the sixth year of maturity. buybacks. The discount was 48 percent. The restructuring agreement also provides FEATURE ARTICLE: Short-Term Commercial for converting into bonds the new money facilities Bank Lending to Developing Countries and the investment features of the 1988 accord. The bonds resulting from the trade deposit facility and the investment features will have a 15-year maturity Developing countries; rely on short-term including 7-years of grace. The bonds resulting from trade credits for several essential consumer goods the parallel financing agreement and the cofinancing imports, such as medicines and basic food supplies. agreement will have an 18-year maturity including 10 They are also vital in facilitating transactions related years of grace. Interest will be LIBOR plus 7/8 to the country's exports. The mechanisms adopted in percent. the provision of trade credits from commercial banks to developing countries are often very complex and Past due interest that has accrued during costly for borrowers in developing countries. A 1991-92 will be consolidated into arrears bonds with break in the flow of short term trade lines, even a a 12-year matunty including 3-years of grace. temporary one, could have severe adverse Intes wimplications on the business of trade in the Interest will be LIBOR plus 13/16 percent. developing countries. Given that short-term trade Regarding curntiteetamnt,Bcredits can easily be structured such that they involve 21 June 1992 few risks for the banks while being extremely costly instruments have been developed to finance to the debtor, they are generally the last forms of developing country trade, such as countertrade and credit to be cut and the first to be re-established in forfaiting.' Moreover, the bundling and debt-distressed developing countries. securitization of short-term loans has allowed banks to stay in the trade financing business without Maybe the most cumbersome obstacle to a considerably increasing their exposure (or their thorough understanding of short-term finance is administrative costs).2 As a result of the increasing collecting reliable and detailed data. The focus of this dynamism and sophistication of the market for article is on credits extended by commercial banks to short-term finance, commercial banks' short-term entities in developing countries with an original claims on major developing country borrowers have maturity of one year or less. Because of the nature of increased from about $75 billion at the end of 1978 trade financing from commercial banks to developing to about $185 billion at the end of 1990. Table 6 in countries it is almost impossible to keep an accurate the Statistical Appendix provides estimates of short record of the flow of short-term credits to these term commercial bank lending to developing countries. Most transactions involve only banks and countries as of end-June 1991 (the latest available exporters and/or importers in the trading nations and, data on this category of debt from the BIS). Short- usually, unless the recipient country enforces term trade financing from official sources (e.g. exchange controls, little or no disclosure is required export credit agencies) has not been enough to fulfill by the governments of these countries. In particular the needs of LDCs due to their limited resources. In for the period before 1982, when the rapidly addition the financin available from these agencies escalating debt stocks were not considered a problem iten tie financing gfilhe frountry ancis by th deeopn conris alos no cosstn dat is often tied to exports of the donor country and is by the developing countries, almost no consistent data not as flexible in its use as is warranted by the needs can be found. Literature on this subject as well as othe blerr reliable data for developing countries is scarce, partly of the borrower. due to the fact that countries were not required to report detailed information on their short term Short-term credits are particularly crucial to obligations to commercial banks by the reporting international trading activities. For example, primary agencies (such as the World Bank's Debtor Reporting goods producers in LDCs often require short-term System). However, some data is available from a financing during the short production cycle involved number of international organizations which are m making the exportable goods available for sale in standard sources for medium and long-term external the international market. Also, spare parts or indebtedness statistics. These include the BIS, IMF, intermediate goods manufacturers in developing OECD and the Debtor Reporting System of the countries often require short-term credits to meet World Bank. However, these sources contribute only working capital requirements prior to the export of partially to explain short-term trade financing. In their goods to a foreign buyer who, in turn, would most cases, the data reported as short-term debt use these goods to produce the finished product that include not only short-term trade lines from is sometimes imported into the same developing commercial banks but also bridge loans, accumulated country. The need for short term financing becomes arrears and inter-bank lines. Until recently, available more and more important with growing international information was sketchy and often too aggregate to trade-related transactions in developing countries, allow for any meaningful analysis. The BIS data on especially when longer term private source financing short term debt reported in the 'Maturity and is not readily forthcoming. Sectoral Distribution" bulletins has been published Commercial bankshave themselves preferred since 1979. Most other creditors' sources began Commercreditvthevelopreferred reporting their estimates for short-term debt after to extend short-term credit to developing countries 1982. instead of medium and long-term loans in order to make it easier for them to conform to the Basle The role of short-term trade credit continues Capital Adequacy Guidelines since they carry a lower to be important to developing countries, even though risk-weighting than the longer term loans. The short- the volume of medium and long-term financing from term exposure also allows them to pull out of a private creditors is on the decline. There are a developing country if its creditworthiness deteriorates variety of instruments, with varying degrees of significantly (e.g. short-term lines of credit are not complexity, that are being used by banks to provide renewed, or the collateral requirements and fees are short-term credits to less developed countries. Apart significantly increased). from the traditional letters of credit, creative new 22 Quarterly Rewew Discussions with market participants have credits are usually intended to finance countries with revealed that short-term lending by commercial banks significant trade deficits was cDnfirmed in the study. to developing countries has been an important and Results also indicated that higher levels of external profitable area of their business activities. From the indebtedness (in terms of the ratio of total debt point of view of developing country debtors, short outstanding to GNP) will bt coupled with higher term trade lines have provided, and will continue to levels of short-term external indebtedness from be, the life-line for essential consumer goods, such as commercial banks (i.e. the ratio of short-term debt to medicines and food supplies. Short-term credits from GNP will be high). Finally, but not least important, private sources will continue to be necessary, given it was shown that there are country specific elements that the official sources do not provide enough to which affect the volume of short-term lending developing countries for them to be able to meet all available to a country. That is, even if all other their trade related short term credit needs. In things remain the same, some countries (e.g. Kenya) addition, the continued availability of short term will find it more difficult to get easy access to short credits, even if they are extremely costly for the term financing from commemial banks than others country, is an important consideration before any (such as Mexico). Factors such as the track record formal debt renegotiations are envisaged. in the implementation of World Bank/IMF structural In a recent study of the determinants of short adjustment programs, the existence of domestic financial markets and orderly resolution of the term commercial bank lending to LDCs, it was found that countries with higher growth prospects, country's exteral debt burden in conformity with a represented by higher investment to GNP ratios, will well thought out overall external debt management receive greater amounts of short-term credits3. At the strategy will go a long way in explaining these same time, the conventional notion that short-term observed differences. 1. See Brun, Richard and Gooptu, Sudarshan. "The Role and Cost of Short-Term Trade Credits" in John D. Shiling (ed.) Beyond Syndicated Loans, World Bank Technical Paper No. 163, 1992, for details on the different types of instruments used in the provision of short term commercial bank credits to LDCs. 2. In March 1990, the US Eximbank introduced the "Bundling" program for insured export credits provided by commercial banks to LDCs. Under this program, a commercial bank is permitted to bundle many small and dverse loans to the private sector in LDCs into one large transaction which, in turn, the Eximbank guarantees. "Securitization" , which has been prevalent in the context of medium and long-term debt restructu rings for several years, is now being used more actively as a way of restructuring the short term external debt of developing countries. 3. See Gooptu, Sudarshan and Maria Soledad Martinez Peria, "Factors That Affect Short-Term Commercial Bank Lending to Developing Countries", World Bank Policy Research Working Paper No. WPS 886, April 1992. 23 Ouarterlv Review Financial Flows to Developing Countries STATISTICAL APPENDIX Table 1 . External Debt ................................................... 25 Table 2 . Financial Flows (Long-Term) to Low and Middle Income Countries .................. 26 Table 3 . Debt Owed to Multilateral Institutions .................................... 27 Table 4 . Bank and Trade-Related Non-Bank Claims .................................. 28 Table 5 . Commercial Bank Claims on Developing Countries ............................ 29 Table 6 . Maturity Distribution of Bank Claims on Developing Countries ..................... 30 Table 7a . U.S. Commercial Bank Claims on Developing Countries ......................... 31 Table 7b . Claims on Developing Countries of Banks in The United States .................... 32 Table 8a . U.K. Commercial Bank Claims on Developing Countries ........................ 33 Table 8b . Developing Country Claims of Banks in The United Kingdom ..................... 34 Table 9a . German Commercial Bank Claims on Developing Countries ....................... 35 Table 9b . Developing Country Claims of Banks in Germany ............................. 36 Table 10a. French Commercial Bank Claims on Developing Countries ....................... 37 Table 10b. Developing Country Claims of Banks in France .. 38 Table 11 . Swiss Commercial Bank Claims on Developing Countries ........................ 39 Table 12 . Italian Commercial Bank Claims on Developing Countries ........................ 40 Table 13 . Japanese Commercial Bank Claims on Developing Countries ...................... 41 Table 14a. Dutch Commercial Bank Claims on Developing Countries ......... .. ............. 42 Table 14b. Claims on Developing Countries of Banks in The Netherlands ....... .. ............ 43 Table 15a. Funds Raised on International Capital Markets ............................... 44 Table 15b. Loans Raised on International Capital Markets ............ .. ................. 45 Table 16. Secondary Loan Prices . ............................................. 46 Quarterly Review Groups . ........................................... 47 Debt and International Finance Division 24 June 1992 Table I EXTERNAL DEBT (In millions of USS) 1985 1986 1987 19S8 1989 1990 199 1p/ DRS Reportng Countries 965,833 1,062,230 1,194,199 1,182,107 1,199,400 1,280,509 1,280,830 Lon -erm 789,116 893,440 1,012,555 996,246 999,687 1,047,041 1,050,186 OMfcial 304,136 368 608 449,242 452,547 474,243 524,638 534,104 Private 484,980 524,832 563,312 543,698 525,444 522,403 516,082 Short-term 136,463 126,254 138,869 150,815 167,774 198,965 194,291 IMF Credit 40,254 42,536 42,775 35,046 31,939 34,503 41,103 AfcGae,Southoftgeahara 98,695 116,083 143,531 145,916 154,751 173,737 175,836 East Asia & Pacific 169 075 186,404 205,219 206,369 207,411 234,684 245,020 Europe & the Mediterranean 129,355 144,203 166,386 162 128 164,063 184,102 172,833 Latin Anerica & the Caribbean 390,892 410,946 446,120 428,150 422,761 431,091 429 174 North Africa & the Middle East 109,310 124,417 140,257 142,745 146,188 141,544 135,607 South Asia 68,505 80,176 92,686 96,799 104,226 115,351 122,360 Memo Item! Eastern Europe 62,900 71,371 82,514 80,776 82,050 90,228 81,263 Severely Indebted Middle Income Countries 418,459 449,364 498,400 485,134 486,718 505,576 486,536 Algeria 18,374 22,796 24,748 25,074 26,063 26,806 25,655 Argentina 50,944 52,451 58,458 58,735 64,776 61,144 56,273 Bolivia 4,805 5,575 5,836 4,901 4,135 4,276 4,037 Brazil 105,966 113,550 123,668 115,666 111,311 116,173 116,803 Bulgaria 3,994 5,244 7,072 9,128 10,213 10,927 12,391 Congo 3,031 3,482 4,351 4,161 4,326 5,118 5,053 Cote d'lvoire 9,745 11,087 13,554 13,993 15,613 17,956 18,455 Ln Ecuador 8,703 9,334 10,473 10,745 11,315 12,105 12,292 Mexico 96,867 100,881 109,460 100,781 95,416 96,809 97,823 Morocco 16,527 18,152 20,973 20,969 21,660 23,524 19,373 Nicarmgua 5,736 6,730 7,864 8,587 9,568 10,497 10,676 Peru 14,279 16,154 18,644 8,S99S 19,920 21,105 20,031 Poland 33,336 36,670 42,620 42,146 43,029 49,386 36,325 S ria 10,819 12 918 15,997 16 383 16 ,81 16,446 15,352 Venezuela 35,334 34,340 34,680 34,865 32,491 33,305 35,998 Severely lnebted Low-income Countries 116 738 133,730 157,787 160 908 164,460 165 013 162,157 Moderately Indebted Low-lcome Countries 105,476 123,373 145,157 149,706 159,238 183,7899 195,440 Moderaely Indebted Middl-Income Countries 138,620 156,311 177,383 175,057 177,960 193,701 194,841 Other Selected Countries 332,725 370,312 412,989 414,409 418,268 440,570 446,426 Chile I/ 20,384 21,144 21,471 19 580 18 017 19,114 19,312 China 16 722 23,746 35,303 42,406 44,847 52,555 57 999 Colornbis I/ 14,245 15,362 17,008 16,995 16,878 17 241 18,086 Egypt 3/ 41,836 46,041 50 783 52,027 51,159 39 885 35 944 Kunasy If 13,954 16,906 19,584 19,602 20,390 21,316 21,666 Indih 2 41,210 48,538 55,856 58,52 64,374 70,115 76,075 Jamaie I/ 4,068 4,187 4,696 4,532 4,537 4,598 4,399 Koea 47,133 46 724 39,808 35,716 32,796 34,014 32,164 Malaysia 20,835 22,709 24,202 21,036 19,166 19,502 19,737 Nigeria 3/ 19,550 23,580 30,893 31,540 32,769 36,068 35,828 Phil' inea 1/ 26,946 28,519 29,803 28,972 28,468 30,455 30,599 Thalnd 17,552 18,505 20,305 21,664 23,450 25,868 27,377 Turkey I/ 26,010 32,842 40,799 40,827 41,419 49,149 50,331 Yugo;a%via 22,278 21,507 22,476 20,987 19,998 20,690 16,907 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. p/ Projection. Source: World Bank Debtor Reporting System. Table 2 FINANCIAL FLOWS (LONG-TERM TO LOW-AND MIDDLE-INCOME COUNTRIES, 1982-91 (in bilions of US$) 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 Aggregate Net Resource Flows (Long-Tenii) 91.0 71.9 63.3 60.2 54.8 51.5 66.5 71.0 81.5 81.7 Official Developrent Finance 35.3 34.0 33.3 34.1 36.0 35.9 37.3 40.1 49.3 51.1 Official Granits 10.4 9.9 11.4 13.2 14.1 15.0 18.1 19.0 26.5 25.2 Official Loans (net) 24.9 24.1 21.9 20.9 21.9 21.0 19.2 21.1 22.8 26.1 Bilateral 13.4 13.1 9.5 8.7 8.4 8.3 7.9 9.3 8.0 10.2 Multilateral 11.5 11.0 12.4 12.2 13.5 12.7 11.4 11.8 14.8 15.4 Private Loans (net) 44.5 29.3 21.5 15.5 9.2 2.1 9.6 7.3 7.0 6.2 Commercial Banks 31.7 20.4 16.2 5.8 2.2 (1.4) 2.0 3.3 4.0 3.3 Other Private 12.8 8.9 5.3 9.7 7.0 3.5 7.6 4.0 3.0 2.9 Foreign Direct Investment (FDI) 11.2 8.6 8.4 10.6 9.6 13.5 19.6 23.6 25.2 24.7 Aggregate Net Transfers (Long-Term) 29.2 13.6 (0.2) (4.6) (7.3) (12.4) (5.8) 4.0 16.0 7.7 Memorandum Items: Private Grants 2.3 2.3 2.6 2.9 3.3 4.0 4.2 4.0 4.9 5.0 Net Use of lMF Credit 6.6 11.1 4.4 (0.2) (2.5) (5.8) (5.5) (2.3) 0.1 2.8 Real Aggregate Net Resource Flows (Long-Term) (Import Unit Value Index) 81.9 66.8 60.8 60.3 57.4 51.5 64.1 67.1 75.6 78.6 Import Unit Value Index 111.6 107.7 103.9 100.0 95.3 100.0 103.7 105.8 107.7 103.9 Notes & Sources: Country coverage: 114 low-and middle income countries; as covered in World Bank Debt Tables, 1991-92. Loans: DRS; excludes short-term flows. FDI: IMF, balance of payments figures, which include reinvested profits. Official and private grants; OECD. Aggregate net transfers equals aggregate net resource flows less interest payments (DRS basis) and reinvested and remitted profits (IMF). Aggregate net resource flows excludes use of IMF credit. Import unit value index from IMF, International Financial Statistics Yearbook 1990 and World Economic Outlook, Washington, D.C., October 1991. p/ Projection. Table 3 DEBT OWED TO MULTILATERAL INSTITTIMONS (In millions of US$) 1983 1984 1985 1986 1987 1988 1989 1990 Claims By Creditors IBRD 37,025 36,624 50,676 68,305 89,048 84,225 84,684 95,855 IDA 18,567 20,863 24,213 28,007 33,305 36,119 39,284 45,035 IMF 33,888 36,045 40,254 42,536 42 775 35,046 31,939 34 503 IDB 8,028 9,443 12,018 14,754 17,745 l8,042 19,103 21,512 ASDB 4,319 5,155 5,939 6,741 7,570 8,854 10,340 15,504 AFDB 746 821 1 213 1,627 2,330 2,754 3,545 4,797 Other 10,320 10,991 13,876 17,515 21,803 22,442 24,285 25,944 Total Debt Owed 112,892 119,941 148,189 179,485 214,577 207,482 213,180 243,150 Liabilities By Debtor Africa, South of the Sahara 18,000 19,106 23,352 28,448 35,528 35,925 37,736 43,518 East Asia & Pacific 18,860 19,224 23,677 29,222 35,020 33,298 34,303 39,259 Europe & the Mediterranean 13,830 13,949 17,432 21,028 24,374 20,362 18,545 20,991 Latin Arnerica & the Caribbean 30,664 35,015 45,426 57,085 69,442 66,955 67,654 77,980 North Africa & the Middle East 8,835 8,953 10,984 13,426 16,528 16,278 17,642 17,542 South Asia 22,702 23,693 27,319 30,277 33,685 34,665 37,300 43,860 Low Income Asia 23,161 24,334 28,719 33,254 37,804 39,557 43,170 50,693 Low Income Africa 13,787 14,782L 18,116 22,080 27,466 28,040 29,851 34,500 Oil Exporters 16,726 18,595 23,562 31,403 41,245 42,043 46,443 56,925 Middle Income Oil lmporters 59,353 62,527 78,375 93,991 109,668 99,313 95,517 103,284 Eastem Europe 3,377 3,578 4,431 5,427 5,777 4,240 3,062 4,184 Severely Indebted Middle-Icome Countries 25,193 28,665 37,341 47,514 58,478 56,422 57,497 68,526 Algeria 403 445 583 926 1,204 1,361 2,078 2,601 t'3 Argentina 2,729 2,660 4,324 5,416 7,836 7,726 7,451 7,966 Bolivia 805 783 806 1,134 1,290 1,500 1,692 1,849 Brazil 7,766 9,807 11,977 14,528 16,287 14,746 13,511 13,245 Bulgaria Congo 278 269 346 412 525 583 560 593 Cote d'lvoire 1,611 1,609 1,872 2,212 2,858 2,652 2,532 3,132 Ecuador 804 891 1,183 1,894 2,338 2,347 2,289 2,391 Mexico 5,463 6,753 8 986 12,237 15,543 15,137 15,843 20,854 Morocco 2,350 2,434 3,207 3,816 4,712 4,556 4,756 5,219 Nicaragua 663 677 742 786 863 918 928 976 Peru 1,682 1,725 2,045 2,395 2,982 2,853 2,790 2,947 Poland 52 87 635 932 924 749 496 1,032 Syrian Arab Republic 434 403 531 727 954 997 1,014 1,069 Venezuela 152 121 105 98 161 297 1,558 4,651 Severely Indebted Low-Income Countries 17,603 18,682 22,314 26,497 32,438 32,599 34,309 36,987 Moderately Indebted Low-Income Countries 26,770 28,154 32,956 37,786 44,719 46,686 50,412 59,310 Moderately Indebted Middle-Income Countries 19,592 20,541 26,707 33,032 39,894 38,571 38,778 43,057 Other Selected Countries 47,508 48,839 59,936 71,676 82,404 77,439 77,162 84,064 Chile 1/ 1,249 1,696 2,620 3,625 4,683 4,713 4,820 5,299 China 401 574 1,324 2,882 4,008 4,766 5,669 6,545 Colombia 1/ 2,155 2,334 3,409 4,561 5,773 5,613 5 651 6,103 Egypt 3/ 3,624 3,671 4,079 4,606 5,560 5,363 5,428 3,848 n4ingarv I/ 636 1,137 1,392 1,892 2,044 2,314 2,298 2,885 India 21 14,513 14,918 17,232 19,036 20,611 20,634 21,230 24 420 Jaamaica 1/ 1, 209 1,185 1,443 1,584 1,837 1,575 1,485 1,532 Korea 5'5205 5,385 6,099 6,862 6 406 4 572 3,851 3,794 Malaysia 1,428 1,297 1,312 1,344 1,576 1,472 1,461 1,812 Nigeria '3/ 883 955 1,431 2,234 3,059 2,844 3,168 3,726 Phili pines 1/ 3,928 3,712 4,647 5,453 6,268 5,865 6,158 7,185 Thailn 3,326 3,302 4,218 4,849 5,404 4,308 3,599 3,722 TurkgeYI/ 5,031 4,951 6,273 7,793 9,766 9,105 8,674 9,631 Yugoslavia 3,919 3,722 4,458 4,956 5,409 4,297 3,669 3,559 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: World Bank Debtor Reporting System. Table 4 BANK AND TRADE-RELATED NON-BANK CLAIMS (in millions of US$) 1991 Q22 Total Bank Guaran- Trade- 1985 1986 1987 1988 1989 1990 Claims teed Related Claims Non- Bank Claims Al Developing Countries 669,737 721,219 776,110 755,654 755,939 799,871 750,996 622,895 88,207 128,101 By Geographk Region Africa, South ofthe Sahara 45,402 48,862 55,383 54,432 52,857 60,221 53,467 37,248 7,555 16,219 East Asia & Pacific 121,728 129,053 139,524 138,190 136,439 165,202 167,743 149,134 8,686 18,609 Europe &theMediterranean 119,075 133,630 151,211 147,414 159,746 182,922 168,250 136,795 23,275 31,455 Latin America & the Caribbean 268,173 277,625 284,950 272,430 258,312 238,618 225,421 197,575 17,230 27,846 North Africa & the Middle East 102,603 117 303 126 621 123,176 126,789 128 452 113,962 83,162 26,976 30,800 South Asia 12,756 14,746 18,421 20,012 21,796 24,456 22,153 18,981 4,485 3,172 Severely Indebted Middle-Income Countries 282,437 299,967 315,361 301,166 290,570 276,430 260,398 217,095 27,245 43,303 Algeria 17 071 19,355 21,158 19,860 20,285 21,000 19,287 15,447 8,951 3,840 Argentina 31,419 35,482 39,092 38,693 35,787 34,470 32,289 29,090 1,274 3,199 Bolivia 786 840 813 716 453 463 408 264 52 144 I Brazil 83 223 88 827 88 802 83 978 77 887 76,155 69 522 61 121 3,968 8,401 Bulgaria 3,485 4,864 6,188 7,703 8,324 9,135 7,906 7,259 347 647 Congo 1,326 1,632 1,743 1,645 1,537 1,720 1,527 1,000 271 527 Cote d'lvoire 3,554 4,048 4,245 4,122 4,186 4,362 3,595 2,676 277 919 Ecuador 5,641 5,824 5,745 5,528 5 202 4,772 4,437 3,992 561 445 tOC g Mexico 79,133 79,289 82,244 75,036 75,507 62,676 64,027 57 554 6,606 6,473 Morocco 6,115 6,797 7,557 7,200 7,201 7,934 7,308 4,769 1,823 2,539 Nicaragua 934 726 731 694 624 1,193 1,119 922 22 197 Peru 6,655 6,366 6,412 6,486 5 967 6,179 5,504 3,619 409 1,885 Poland 14,936 18,556 23,076 20,789 21,044 25,934 23,949 11,252 1,012 12,697 Syrian Arab Republic 1,469 1 529 1 632 1,369 1,326 1,219 1 127 896 28 231 Venezuela 26,690 25,832 25,923 27,347 25,240 19,218 18,393 17,234 1,644 1,159 Severely Indebted Low-Income Countries 47,565 50,562 57,804 56,758 55,282 56,433 49,941 25,998 6,609 17,278 Moderately Indebted Low-Income Countries 33,534 37,076 43,384 44,174 47,413 59,548 57,050 48,806 6,819 8,244 Moderately Indebted Middle-lncome Countrites 72,062 77,677 85,226 81,172 77,401 83,994 76,366 62,934 12,410 12,829 Other Selected Countries 182,240 191,839 205,042 201,230 196,495 218,008 210,498 176,616 24,081 33,882 Chile 1/ 14,933 14,603 13,476 11,548 9,880 9,813 8,916 8,151 398 765 China 13,947 15,617 20,649 27,631 26 682 34,424 34,064 30,279 2,100 3,785 Colombia 1/ 7,857 8,466 8,965 9,255 8,841 8,886 8,169 6,305 1,243 1,864 Egypt 3/ 14,287 15 779 18,172 17 642 18 689 14 219 12,195 6 278 2,328 5,917 r ungary 1/ 9,142 10,445 12,807 11,815 12,219 12,132 10,343 9,869 802 474 India 2/ 8,041 9,672 12,849 14,342 15,950 17,359 15,724 14,077 2,717 1,647 Jamaica 1/ 870 750 791 807 983 974 866 553 151 313 Korea 40,138 38,873 33,259 31,480 31,503 36,199 39,205 35,322 2,385 3,883 Malaysia 12,719 13,349 12,340 10,037 9,141 9,225 8,349 7,576 391 773 NijgeH.a3! 1~ AtO 13,124 t4950 13.627 11.865 12.773 10.871 6.060 2,637 4,811 Philippines 1/ 15,787 16,306 16,471 14,507 11,914 11,965 11,161 8,848 665 2,313 Thailand 9,017 8,781 10,450 10,559 12,376 18,018 21,118 19,485 537 1,633 Turkey 1/ 11 138 13 596 17 114 16 630 16,705 22,214 21 525 18 045 6 073 3 480 Yugoslavia 12 354 12,578 12,749 11,350 9,747 9,807 7,992 5,768 1,654 2,224 Offshore Banking Centera 55,114 66,113 76,720 78,778 89,226 116,293 109,694 107,398 2,848 2,296 Oil Exportera 126365 145 607 156 798 158,082 167,377 174,867 159 846 127,564 301739 32 282 DRS reporters 67,410 79054 82 ,988 83 753 81,589 831404 759546 57,029 16,194 18,517 DRS Reporting Countries 592,963 629,777 674,510 652,555 640,880 677,985 644,129 536,504 66,324 107,625 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: OECD/BIS, Statistics on External Indebtedness. Table 5 COMMERCIAL BANKS CLAIMS ON DEVELOPING COUNTRIES (in millions of USS) Claims Liabilities Exchange-Rate Adjusted Flows 1989 1990 1991Q3 1991Q4 1990 1991Q3 1991Q4 1989 1990 1991Q3 1991Q4 All Developing Countries 623,791 658,672 636,697 671,235 680,243 653,997 668,705 1,706 5,857 7,677 18,329 By Geographic Region Africa, South of ihe Sahara 37,036 41,347 37,717 38,936 *41,820 39,108 39,654 (849) (185) (53 67 East Asia & Pacific 118,060 145,936 159,315 170,989, 138,603 133,254 139 594- (I,191) 10,878 7,24 9,253 Europe & the Mediterranean 129 793 151,991 142,172 152,889 * 81,262 75 512 80,253 * 2,070 (3,795) 2,000 3,453 Latin America & the Caribbean 234,220 210,298 204 117 208 832 146,352 144,112 143,863, (4,088) (4,423) 82 1,914 North Africa & the Middle East 83,580 85,516 73,242 79,054 * 228,897 217,711 219,216: 5,153 3,169 (1,754) 3,561 South Asia 21,102 23,584 20,134 20,535, 43,309 44,300 46,125 611 213 155 81 Severely Indebted Middle-Income Countries 248,965 227,738 219,507 225,263 126,169 124,431 126,141 (3,583) (5,667) 212 1,218 Algeria 13,572 14,912 13,682 14,341 2,510 2,368 3,359 185 (471) 240 (108) Argentina 32,369 30,766 29,347 30,930 20,630 21,207 21,032 (1,360 (576) (456) 1,024 341 284 259 260 * 943 873 865 (968 (5) 4 Brazil 70,849 66,997 60,833 61,048, 23,428 23,156 23 429 (2,384 (237) (I,488) (7 Bulgaria 7,755 8,765 7,470 7,890 579 966 1,023, (23) (150) (145) 12 Congo 1,085 1,034 963 1,063 315 269 305 (61) (49) (54) 65 Cote d'lvoire 3,259 3,266 2 663 2,745 2,426 2,028 1,920 (144) (104) (66) (95) Ecuador 4 582 4 081 4,049 3,901 2,507 2,692 2,767 (231j (202) (25) (197) Mexico 70147 55 944 60,469 62 264, 28 758 29 ,12 28 295 1,228 786 2,095 1,373 Morocco 5,170 5,310 4,776 5,081, 3,633 3,636 4,139 39 (5) (92) 134 Nicaragua 400 915 967 939 209 381 393 (3) l5J 34 (32) Peru 4,066 3,851 3,716 3,640 ; 3,424 3,561 3,675 (286 (1(47) (1 (155) Poland 10,286 12,756 11,965 12,579 * 7,816 5,798 5,136 31 237 162 (79) Svria 962 947 893 818, 4,521 5,026 5,152 1 (162) (23) (95) Veneczucla 24,122 17,910 17,455 17,764, 24,470 23,358 24,651 (477) (4,580) 46 92 Severely Indebted Low-Income Countries 31,926 35,578 31,714 32,377 48,753 48,783 50,703 (785) (410) (504) (279) Moderately Indebted Low-Income Countries 38,043 49,160 48,625 50,616, 25,554 26,699 27,957 729 3,056 1 014 1,223 Moderately Indebted Middle-Income Countries 61,050 65,913 60,297 61,670; 56,447 56,758 57,305, (1,387) (133) (912) (416) Other Selected Countries 152,803 176,879 178,689 187,969 142,379 141,136 149,165 157 5,572 4,706 5,255 Chile 1/ 9 061 8,867 7,764 8,011 9,775 7,203 6,674 (445) 327 (413) 135 China 22,660 30,989 32,681 37,019 40,457 42,176 46,838 1,506 3,451 1,984 3,658 Colombia 1/ 6 629 6 801 6 373 6,620 8,060 8,727 8,923 572 (16) 3 140 Egypt3/ 6,585 6,898 5,611 5,711 17,440 19,419 20,338 (113) (149) (352) (214) Hungary 1/ 11,884 11,946 10,053 10,429 . 1,784 2,946 3,723 74 (762) (260) (155) India 2/ 12,895 14,749 12,240 12,429 8,937 9,877 10,086 294 337 188 Jamaica 1/ 692 624 444 418 812 535 614 37 (37) (61) (27) Korea 27,406 32,219 37,469 39,140 10,374 11,961 10,487 (112) 855 1,750 1,129 Malaysia 8,517 8,444 8,041 9,131 * 9 790 7,028 9 432 . (47) 327 342 903 Nigeria 3/ 7,441 6,990 5,815 5,947 5,151 4 ,849 5,177, (700) (484) (319) (105) Philippines 1/ 9 641 9,559 8,996 8,730 4,709 5,028 4,878 (1,770) (184) 10 (404) Thailand 11,020 15,997 21,837 22,685 : 6,393 5,516 5,411 : 761 1,891 2,245 667 Turkey 1/ 10,784 15,515 15,696 16,153 ' 10,715 10,615 11 691 413 450 (202) (98) Yugoslavia 7,588 7,281 5,669 5,546 7,982 5 ,256 4,893 (313) (434) (209) (374) Offshore Banking Centers 765,148 1,065,000 1,022,250 1,072 63. 1056 110 989 108 1,014,4- 47,074 58,633 18,243 26,028 Oil1 Expottrs 136,474 139,982 129,346 141,l B 65B 194:463 148,737: 4:684 (3,037) 431 6,670 DIreporters 63,385 60,136 54,472 59,136 88,972 79,723 85,698 1,053 (2,026) (664) 3,005 DRS Reporting Countries 547,939 701,532 687,664 721,564 607,180 587,748 610,948, 8,491 8,899 11,996 20,532 1/ Also included in Moderately Indebted Middle-income Countries. 2/ Also included in Modertely Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Bank for Internatonal Settlements, Intemational Banking and Financial Market Develor,ments. Table 6 MATURIT DISTRIBUTION OF BANK CLAIMS ON DEVELOPING COUNTRIES (in millions of US$) 1991Q2- Un- Estimated Short- 1987 1988 1989 1990 > 1 yr & allocated Short- Term Total < I yr < 2 yra > 2 yra Tern (% of Total) All Developing Countries 569,500 544,644 543,069 564,321 527,845 229,231 35,762 240,691 22,161 194,806 37 By Geographic Regio Africa, South ofih Sahara 36,499 33,195 32,507 33,196 30,088 14,12.5 2,619 1 1,695 1,649 11,672 39 East Asia & Pacific 101,410 100,492 102,052 117,862 121,274 70,619 7,882 37,045 5,728 63,293 52 Europe & the Mediterranean 117,227 117,372 127,502 147,556 130,019 41,975 11,128 71,235 5,681 31,014 24 Latin America & the Caribbean 237,864 219,512 204,124 185,532 174,414 66,369 7,267 94,928 5,850 59,150 34 Nosth Africa & the Middle East 64,540 61 486 63,827 63,630 57 376 31 139 5 838 18,927 1,472 25,536 45 South Asia 11,960 12,587 13,057 16,545 14,674 5,004 1,028 6,861 1,781 4,141 28 Severely Indebted Middle-Income Countries 250,969 233,072 220,152 203,966 189,951 71,383 10,265 102,533 5,770 61,779 33 Algeria 14 662 14 031 14,168 15,183 13,252 4,495 2,776 5,607 374 2,285 17 Argentina 33,203 32,448 27,054 26,106 24,489 8,132 548 15,406 403 7,623 31 oivyia 583 341 284 230 230 149 21 58 2 134 58 Brazil 69 249 63 861 61 012 55 457 48,776 19,957 3,334 24 666 819 16,823 34 Bulgaria 5,254 6,780 7,803 8,704 7,382 3,1819 600 2,772 191 3,029 41 Congo 1,311 999 868 841 752 441 49 259 3 392 52 Cote d'lvoire 3,556 3 257 3 252 3,083 2,563 1 821 190 505 47 1,592 62 Ecuador 532 4,54 4064 3,586 3,497 1,604 271 1,504 118 1,414 *40 Mexico 69 930 62,760 59 747 50,396 52,151 20 392 1,208 27,720 2,831 19,195 37 O Morocco 5,229 4,592 4,596 4,851 4,317 1,092 330 2,863 32 803 19 Nicaragua 461 451 388 889 887 401 26 460 . 358 40 Peru 4,212 3,694 3,136 2,964 2,818 1,946 112 638 122 1,829 65 Poland 11,909 10,309 10,049 12,187 10,930 3,058 396 7,135 341 2,747 25 Syrian Arab Republic 914 . 637 506 512 361 18 121 12 336 66 venezuela 25,184 25,004 23,094 18,983 17,395 3,715 386 12,819 475 3,219 19 Severely Indebted Low-Income Countries 31,924 28,831 26,891 27,075 24,647 11,235 2,249 10,428 735 9,079 37 Moderately Indebted Low-Income Countries 28,724 30,110 31,828 39,798 38,963 19,257 3,328 14,342 2,036 16,251 42 Moderately Indebted Middle-Income Countries 67,556 60,815 60,353 63,966 56,304 21,894 4,402 27,309 2,699 17,066 30 Other Selected Countries 145,427 140,162 139,976 155,252 147,800 67,887 10,737 62,002 7,174 57,254 39 Chile I/ 12,843 11,038 9,329 8,901 8,203 3,124 341 4,583 155 2,764 34 China 11,987 16,652 17,983 22,273 20,021 6,030 1,883 10,991 1,117 4,186 21 Colombia 1/ 6,266 6,554 6,299 6,353 5,648 1,867 550 3 121 110 1,231 22 Egpt 3/ 6,813 6,138 6,087 5,967 533 2,842 630 1,870 21 2,132 40 Hungary 1/ 12,442 11,720 11,953 12,153 10,007 2,033 1,209 6,044 721 646 6 India 2/ 8,362 9,318 10,579 12,149 10,621 2,961 828 6,166 666 2,278 21 Jamaica 1/ 487 485 485 489 413 139 41 192 41 84 20 Korea 23,793 21,482 23,306 28,744 30,792 21,844 1,594 5 923 1,431 20 464 66 Malaysia 9,975 8,353 7,825 7,266 6,585 2,116 409 2,974 1,086 1,639 25 Nigeria 3i ;V0 Sw S 992 ,30' u,353 5 '2u 1,927 397 3,229 73 1,472 26 Philippines 1/ 13,105 11,573 9,645 9,337 8,134 2,708 303 4,644 479 2,321 29 Thailand 7,513 8,338 10,59~~~~ ~~~~1 1359 16,773 11,756 1,041 3,645 331 11,041 66 Turkey 1/ 11,146 10,690 10,918 14,731 14,030 7,212 1,215 4,686 917 5,987 43 Yugoslavia 9,889 8,829 7,669 6,967 5,584 1,328 296 3,934 26 1,009 18 Offshore Banking Centers 375,045 358,883 396,825 453,118 416,186 341,928 11,555 49,980 12,723 330,384 79 Oi xotrs 110,478 111,662 118,5803 121,349 108,089 36,150 9,230 60,473 2,236 26,964 25 Dil rExporters 62,224 58,874 56,679 52,866 47,473 17,710 4 ,326 24,341 1,096 13,784 29 DRS Reporting Countries 530,504 497,061 489,054 503,832 477,662 216,660 31,328 210,045 19,629 187,046 39 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Bank for International Settlements, The Maturity and Sectoral Distribution of International Bank Lending. Table 7a U.S. COMMERCIAL BANK CLAIMS ON DEVELOPING COUNTRIES * (in millions of US$) 1984 1985 1986 1987 1988 1989 1990 1991Q1 1991Q2 1991Q3 1991Q4 All Developing Countries 142,850 130,680 118,325 107,898 92,877 79,723 69,561 67,782 65,987 66,166 65,028 By Geographk Region Africa, South of he Sahara 5,671 4,467 2,896 2,826 2,212 2,203 1,524 1,346 1,396 1,273 1,202 East Asia & Pacific 26,432 22,782 18,565 16,532 13,584 12,949 12,642 12,837 12,985 13,264 12,744 Europe & the Mediterranean 10 889 10,212 8,410 7,656 6 634 5,799 5 893 4 997 5,087 5 202 5,103 Latin Aerica & the Caribbean 87,165 82,396 78,945 74,670 64,701 53,233 44,292 43,455 41,372 41,385 41,112 North Africa & the Middle East 10 820 8,682 7,235 4,723 4 509 4,264 4,212 4,179 4,392 4,341 4,101 South Asia 1,873 2,141 2,274 1,491 1,237 1,275 998 968 755 701 766 Severely Indebted Middle-Income Countries 77,359 73,021 70,098 65,895 57,390 47,036 38,969 38,428 36,426 36,439 36,136 Algeria 1,020 829 848 130 646 528 552 543 500 473 499 ArRentina 7,975 8,411 8,524 8,812 7,879 4,500 3,497 3,453 3,381 3,642 3,813 Bo nia 212 113 96 66 38 10 8 12 11 9 11 Brazil 23,869 22,796 22,404 21,275 19,391 16,284 11,444 10,980 8,790 7,801 6,897 Bulgaria 100 114 112 88 151 76 57 51 76 65 70 Congo Cote d'lvoire 471 358 365 363 311 213 76 75 73 65 35 Ecuador 2,144 2,143 2,170 1,919 1,519 1,029 689 699 650 568 500 Mexico 26,525 24,934 23,654 22,722 17,887 16,060 15,212 15,229 15,433 15,927 16,516 Morocco 911 905 892 820 727 618 575 570 529 538 549 Nicaragua 225 91 66 43 16 5 4 15 Peru 2,357 1,654 1,344 901 518 215 116 108 109 136 140 Poland 693 550 469 386 289 313 280 277 286 296 267 Svrian Arab Republic 44 32 42 50 33 41 23 20 19 18 18 Venezuel 10,813 10,091 9,112 8,320 8,001 7,149 6,440 6,395 6,564 6,897 6,806 Severely Indebted Low-Income Countries 5511 4,167 3,300 2,489 1,843 1,813 1,171 1,066 1 156 1,084 1,081 Moderately Indebted Low-Income Countries 4,373 3,946 3,508 2,736 2,111 2,106 2,084 2,215 2,098 2,008 2,101 Moderately Indebted Middle-Income Countries 21,230 20168 18,697 17,551 15182 12,574 11,740 11,388 11,167 11,156 10,962 Other Selected Countries 38,939 35,815 29,300 25,212 22,597 19,695 19,738 18,305 17,953 18,029 17,402 Chile 1/ 6,697 6,569 6,459 5,999 5,044 3,945 3,085 3,009 2,987 2,904 2,730 China 878 573 491 439 376 342 340 370 322 353 344 Colombia 1/ 2,967 2,625 2,148 2,068 2,117 1,921 1,882 1,753 1,636 1,654 1,742 Egypt 3/ 1,284 996 651 437 293 189 195 195 199 199 205 nungary 1/ 765 606 346 380 319 247 202 213 280 424 357 Inda 21 755 935 999 989 817 831 676 605 360 280 315 Jamaica 1/ 330 261 205 160 188 152 162 144 131 147 154 Korea 9,956 9,165 5,997 3,849 3,857 3,972 4,293 3,971 4,029 4,091 3,799 Malaysia 1,726 1,087 741 477 423 324 345 385 377 473 513 Nigeria 3/ 1,539 1,199 903 901 817 694 522 496 526 489 476 Philippines 1/ 5,454 5,418 5,107 4,674 3,993 3,233 3,197 3,123 3,092 3,045 3,005 Tlhailand 2,191 1 877 1,114 816 943 1,002 1,383 1,484 1,580 1,730 1,558 Turkey 1/ 2,018 2,106 2 074 2 108 1,539 1,188 1,528 1,560 1,454 1,398 1,331 Yugoslavia 2,379 2,398 2,065 1,915 1,871 1,655 1,928 997 980 842 873 Offshore Banking Centers 38,784 34,176 32,339 32,294 29,012 27,840 23,731 24,030 24,989 24,921 26,099 Oil Exnorers 17,560 15,268 13,215 11 059 11,396 10,460 9,252 9,420 9,978 10,175 10,010 DRS reporters 14,720 12,901 11,581 9,852 10,013 8,886 7,889 7,779 7,952 8,260 8,213 DRS Reportn Countries 141,131 129,954 116,650 105,011 90,598 77,217 68,108 66,346 64,184 64,384 64,945 * Consolidated claims of U.S. banks and their worldwide operations. 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Federal Financial Institutions Examinations Council, U.S. Country Exposure Lending Survey. Table 7b CLAIMS ON DEVELOPING COUNTRIES OF BANKS IN THE UNITED STATES * (in millions of US$) 1984 1985 1986 1987 1988 1989 1990 1991Q1 1991Q2 1991Q3 1991Q4 All Developing Countries 135,818 129,110 127,242 124,202 124,979 116,549 90,835 91,206 88,383 83,666 85,111 By GeographicR o Africa,South173,i5e90ahara , 1,320 1,306 1,516 1,579 1,720 1,820 1,755 1,806 1,665 East Asia & Pacific 17,983 16,1569 15,417 14,590 14,158 12,761 12,894 13,285 14,104 12,675 14,289 Europe & the Mediterranean 6,622 6,745 7 230 5,894 7,142 7 779 7,444 8 302 8,560 7,928 8,745 Latin America & the Caribbean 103,694 98,663 98,369 97,479 91,469 82,589 56,737 55,983 52,313 49,720 50,333 North Africa & the Middle East 4,969 4,744 4,238 4,098 9,285 9,672 9,628 9,265 9,378 9,071 7,958 South Asia c 817 799 668 835 1,409 2,169 2,412 2,551 2,273 2,466 2,121 Severely Indebted Middle-Income Countries 90,619 86,273 86,637 86,139 81,022 73,143 48,607 48,152 45,438 42,867 43,520 Agentina 11,225 11,634 12,495 12,520 12,322 9,790 7,506 7,114 6,612 6,199 6,291 Bivia 208 167 139 134 110 30 55 49 53 Brazil 26,745 25,653 26,086 26,447 26,348 24,256 18,956 19,199 16,174 12,786 12,746 Bulgaria 23 22 42 48 68 98 83 100 92 66 119 Congo Cote d'lvoire 170 165 110 134 178 113 60 59 48 Ecuador 2,469 2,438 2,536 2,410 2,210 1,768 1,479 1,427 1,433 1,203 1,156 Mexico 35,186 32,175 31,367 31,034 26,852 24,997 15,784 15,915 16,316 17,717 18,022 Morocco 604 591 624 560 525 730 735 754 805 793 832 Nicaragua 99 115 116 116 55 55 56 52 27 Peru 2,411 1,967 1,689 1,357 1,036 793 698 730 755 738 763 Poland 196 172 189 239 232 258 212 321 431 424 467 Sya 58 58 52 52 36 45 51 31 31 28 27 Senezuela 11,225 11,116 11,192 11,088 11,050 10,210 2,932 2,561 2,629 2,913 2,969 Severely Indebted Low-Income Countries 1,940 1,765 1,581 1,580 1,632 1,762 1,523 1,306 1,415 1,346 1,370 Moderately Indebted Low-Income Countries 1,672 1,581 1,430 1,466 1,806 2,577 3,081 2,971 2,797 2,599 2,1695 Moderately Indebted Middle-Income Countries 18,231 17,115 164,715 16,367 16,356 15,187 13,900 12,825 13,378 12,104 13,127 Other Selected Countries 30,991 29,451 26,518 23,856 23,631 22,985 22,582 23 203 22,873 21,485 22,002 Chile I/ 7,011 6,719 6,656 6,492 5,466 4,696 3,567 3,446 3,178 2,987 3,079 China 729 704 834 1,058 824 703 643 744 1,052 683 761 Colombia l/ 3,583 3,351 2,967 2,898 3,146 2,917 3,037 2,877 2,793 2,864 2,858 Egypt 3/ 775 757 598 546 527 508 395 320 329 331 305 Hungary I/ 895 663 515 472 377 384 190 199 174 165 125 India 2/ 465 490 388 574 600 669 711 632 528 573 522 Jamaica I/ 268 237 207 195 220 303 242 230 194 155 162 Korea 9,653 9,596 7,586 5,261 5,304 5,422 5,931 6,374 6,098 5,346 6,202 Malaysia 780 428 398 135 130 477 337 327 274 425 269 Nigeria 3/ Philippines I/ 2,589 2,242 2,234 2,088 1,897 1,347 1,279 1,478 1,536 1,726 2,004 _A I~~~~~~~~ iA*2 I IVVI 649 64 9~ 25 t 1 F2 I&)A I 511 Ol A 11 Ati I 7S6 L Turkey;i/ i:17 i:253 1,578 1,767 2,797 302i4 3,429 3,731 3,692 3,374 3,066 Yugoslavia 1,905 2,011 1,908 1,728 1,418 1,350 1,197 1,034 974 841 863 Offshore Bankcing Centers 122,975 124,279 136,845 147,781 156,573 192,361 227,994 229,970 245,519 244,124 237,384 Oil Eporters 12,800 12,449 12,741 12,997 14,295 13,501 5,521 5,265 5,497 5,782 5,480 DRSreporters 11,563 11,429 11,487 11,335 11,278 10,473 3,270 2,789 2,979 3,087 3,295 DRS Reporting Countries 197,274 190,987 187,949 188,154 182,890 185,502 160,319 158,049 159,327 155,885 164,306 * All resident banks. 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: U.S. Treasury Bulletin, Ouarterly series. Table 8a UK COMMERCUIL BANK CLAIMS ON DEVELOPING COUNTRES * (in millions of US$) 1984 1985 1986 1987 1988 1989Q2 1989Q4 1990Q2 1990Q4 1991Q2 All Developing Countries 62,735 64,706 65,441 64,952 60,310 56,531 52,551 46,564 44,958 41,204 By Geographic Regon Africa, South ofthe Sahara 5,748 6,058 6,052 6,352 5,809 5,039 4,539 4,633 4,140 3,594 East Asia & Pacific 9,123 8,840 8,269 7,360 6,331 6,194 5,267 5,218 5.501 5,739 Europe&theMediterranean 10,614 11953 12,074 11,710 11,770 10,996 11,210 11,150 10,780 9,574 Latin America & the Caribbean 30 083 30,101 30,880 30,714 27 304 26,266 23,623 18,046 16,856 16,271 North Africa & the Middle East 6,233 6.401 6 367 6,816 7,241 6 439 6,338 6,044 5 981 4 508 South Asia 934 1,353 1,799 2,000 1,855 1,597 1,574 1,473 1,700 1,518 Severely Indebted Middle-Income Countries 28,785 28,888 30,036 30,481 27,505 26,604 24,577 19,327 18,226 17,193 Algeria 658 633 823 832 812 747 784 750 760 655 Argentina 3,394 3,677 4,110 4,206 4,108 3,868 3,343 2,625 2,352 2,244 Bo~lvia 124 94 99 109 33 33 26 26 8 Brazil 9,344 9,140 9,515 9,673 7,585 7,345 6,890 5,173 4,694 4,226 Bulgaria 208 434 457 411 575 508 532 467 473 209 Congo 57 71 91 85 69 42 39 28 37 37 Cote d'lvoire 345 335 356 347 354 312 292 272 247 148 Ecuador 725 760 809 864 799 806 750 603 546 542 Mexico 8,746 8,669 8,674 8,773 8,291 8,036 7,500 5,146 4,909 5,270 Morocco 361 385 421 425 374 445 447 412 401 308 Nicaragua 108 98 88 83 71 37 35 54 35 34 Peru 708 649 663 670 588 533 464 429 276 295 Lo Poland 1,146 1,136 1,119 1,276 1,132 1,125 1,182 1,226 1,279 1,107 Syria 90 117 169 102 89 82 81 77 69 62 Vennaezuela 2,771 2,690 2,642 2,625 2,625 2,685 2,212 2,039 2,140 2,056 Severely Indebted Low-Income Countries 5,446 5,640 5,469 5,842 5,378 4,780 4,224 4,363 3,800 3,266 Moderately Indebted Low-lncome Countries 2,304 2,693 3,130 3,272 3,057 2,571 2,502 2,358 2,626 2,441 Moderately Indebted Middle-Income Countries 6,881 6,970 7,281 6,759 6,131 5,615 4,904 4,339 4,473 4,128 Other Selected Countries 16,207 16,691 16,741 15,678 13 549 12,233 10,780 10,082 10,306 9,579 Chile 1/ 2,095 2,178 2,089 1,725 1,289 1,150 626 530 567 524 China 210 457 267 411 756 947 938 945 1,025 843 Colombia 1/ 786 756 794 715 743 722 785 657 643 546 Egypt 3/ 750 727 637 730 729 670 629 644 650 582 Hungary 1/ 812 661 589 602 548 535 518 420 330 331 India 2/ 494 838 1,267 1,479 1,367 1,091 1,100 1,059 1,219 1,083 Jamaica 1/ 50 51 45 42 52 54 69 70 68 63 Korea 2,763 2,707 2,442 2,040 1,376 1,290 1,130 1,214 1,343 1,560 Malaysia 1 657 1,451 1,390 949 463 510 329 279 484 495 Nigeria 3/ 2,394 2,495 2,818 2,981 2,452 1,936 1,704 1,507 1,065 741 Philippines 1/ 1,676 1,531 1,623 1,500 1,446 1,237 956 795 797 736 Thailand 418 399 212 145 155 184 190 239 228 332 Turkey 1/ 406 636 887 944 826 S14 892 959 1,142 1,156 Yugoslavia 1,696 1,804 1,681 1,415 1,347 1,093 914 764 745 587 Offshore Banking Centers 20,629 21,528 25,627 29,703 27,225 26,509 27,622 29,075 28,509 25,393 Oil Exporters 11,159 12,165 12 901 13,103 13 208 12,118 11 547 11 152 10,341 8,712 DRSreporters 7,476 7,395 7,972 8,104 7,515 6,841 6,039 5,481 5,185 4 509 DRS Reporting Countries 58,916 59,677 60,430 60,061 54,027 50,416 47,004 40,411 39,380 37,031 Consolidated claims of UK banks and their worldwide operations I/ Also included in Moderately Indebted Middle-Income Countres. 2/ Also included in Moderately Indebted Low-lIcome Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Bank of England , Ouarterlv Bulletin. Table Sb DEVELOPING COUNTRY CLAIMS OF BANKS IN THE UNITED KINGDOM * (in millions of US$) 1984 1985 1986 1987 1988 1989 1990Q2 1990Q3 1990Q4 1991Q1 1991Q2 Ai Developing Countries 88,497 100,278 102,919 103,679 96,855 100,052 96,157 96,105 96,601 90,876 88,714 By Geographic Region Africa, South ofnte Sahara 11,032 11,640 11,322 10,386 10,096 8,599 8,794 8,796 8,347 7,554 7,146 East Asia & Pacific 9,840 11,433 11,144 11,931 10,294 9,501 11,114 11,117 11,492 11,927 11,747 Europe & the Mediterranean 22,978 28,863 31,345 33,495 33,127 34,311 33,378 33,322 32,568 29,431 27,836 Latin America & the Caribbean 37,360 39,872 40,117 38,350 34,346 30,901 25,274 25 274 26 431 26 540 27 690 North Africa & the Middle East 5 630 6,011 6,177 6,158 5 994 14,096 14,418 14,417 14,276 11,988 11,285 South Asia 1,657 2,459 2,814 3,359 2,998 2,644 3,179 3,179 3,487 3,436 3,010 Severely Indebted Middle-Income Countries 37,620 40,613 41,587 41,346 37,993 35,095 29,519 29,519 30,476 30,087 30,780 Algeria 1,428 1,636 2 109 2 254 2 225 2 076 1 977 1,977 1,912 1,723 1 592 Argentina 3,786 4,479 5,087 5,175 5,123 4,239 3,283 3,283 3,029 2,900 2,815 Bolivia 140 118 112 120 38 30 12 12 11 12 10 Brazil 13,161 13,311 13 123 12,588 10 186 9,330 7 392 7,392 7 202 7,124 6,739 Bulgaria 275 741 1,055 1,388 1,837 1,978 1,750 1,750 1,637 1,408 1,220 Congo 93 105 124 126 88 48 31 31 19 16 14 Cote d'lvoire 507 527 518 482 499 484 384 384 391 284 269 Mceudcor 12,002 12,976 13,012 12,739 11,831 11,225 9,491 9,491 10,584 11,722 12,990 Morocco Nicaragua 112 121 109 111 85 47 46 46 45 44 44 i Peru 532 642 630 631 548 466 322 322 323 304 291 X, Poland 2,167 2,338 2,366 2,511 2,210 2,211 2,289 2,289 2,250 2,051 1,928 Syria 127 159 199 145 109 98 85 85 83 68 74 Venezuela 3,290 3,460 3,143 3,076 3,214 2,863 2,457 2,457 2,990 2,431 2,794 Severely Indebted Low-Income Countries 8,684 9,167 8,349 8,770 8,627 6,969 7 272 7,274 6 839 6,716 5 908 Moderately Indebted Low-Income Countries 295 386 433 4,889 4,681 3,819 4,292 4,295 4,665 4,583 4,152 Moderately Indebted Middle-Income Countries 7,922 9,384 10,045 9,831 8,740 8,341 8,758 8,758 8,437 7,870 7,968 Other Selected Countries 21,980 25,878 25,855 25,990 23,633 21,012 22,609 22,609 22,510 21,828 20,983 Chile l/ 2,234 2,545 2,350 2,004 1,396 802 751 751 817 831 800 China 247 1,392 632 590 1,070 1,246 1,650 1,650 1,805 1,690 1,632 Colombia 1/ 736 703 744 607 731 757 632 632 591 530 494 Egypt 3/ 1,380 1,327 955 964 888 880 859 859 841 1,159 772 Hungary 1/ 1,793 2,359 2,589 3,003 2,684 2,647 2,150 2,150 2,004 1,839 1,823 India 2/ 839 1,348 1,757 2,271 2,023 1,692 2,004 2,004 2,258 2,234 1,862 Jamaica 1/ 84 68 65 56 48 57 93 93 57 61 53 Korea 2 981 3 438 3,518 3 554 3,001 2 988 3,702 3 702 3 960 3,832 4,131 Malaysia 2,233 2,265 2,345 1,913 1,522 1,179 1,321 1,321 1,309 1,241 1,239 Nigeria 3/ 3,465 3,850 4,113 4,587 4,036 3,079 2,694 2,694 2,347 2,125 1,859 P.i^i.s1/ !,625e !,48! I,2 A,42 I,2 95S J,242 I,4 ')),16A) I 7 I!,!!5 n!,05 Tairland- 667 668 -23 36 1593 63 794i 794 783924 96 Turkey 1/ 749 1,440 1 817 2,009 1,939 2,398 3,338 3,338 3 322 3 132 3 273 Yugoslavia 2,947 2,994 2,725 2,412 2,378 1,694 1,379 1,379 1,249 1 114 1,017 Offshore Banking Centers 89,363 89,554 104,843 120,176 112,896 119,231 131,506 131,506 131,203 123,430 116,467 Oil Exorters 12 543 16,281 19,074 20,323 21,027 26,520 23,704 23 703 23,338 20 642 20,292 DRS reporters 8,362 9,182 9,640 10,134 9,624 10,939 9,913 9,912 10,023 8,812 8,959 DRS Reportng Countries 101,980 108,548 110,621 109,914 101,534 97,325 95,652 95,656 96,997 92,591 89,866 * All resident banks. 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Bank of England, Quarterly Bulletin. Table 9a GERMAN COMMERCIAL BANK CLAIMS ON DEVELOPING COUNTRIES s (in millions of USS) 1985 1986 1987 1988 1989 1990Q3 1990Q4 1991Q1 1991Q2 1991Q3 1991Q4 All Developing Countries 56,673 68,018 81,782 78,387 85,622 112,865 119,444 114,196 110,511 119,838 132,692 By Geographic Region Africa, South of the Sahara 4,065 4,947 5,814 4,869 5,003 5,639 6,008 5,296 4,751 5,466 5,923 East Asia & Pacific 6,417 7,274 8,777 8,839 9,656 11,215 10,565 12,281 12,354 13,528 14,762 Europe & the Mediterranean 17,007 20,881 25 848 25,519 29,214 47,187 52,542 49,430 47,287 52,586 59,036 Latin America & the Caribbean 17,968 20,376 23,500 22,397 22,739 27,244 27,707 26,613 26,077 27,964 29,802 North Africa & the Middle East 7 507 9,524 11 579 10,959 12,128 13 985 14,028 12 344 12,698 12 859 14,559 South Asia 3,708 5,016 6,263 5,804 6,882 7,595 8,594 8,232 7,344 7,436 8,610 Severely Indebted Middle-Income Countries 21,531 24,958 29,065 27,851 28,503 32,692 33,565 32,683 32,207 34,611 37,352 Algeria 829 883 1,095 1,254 1,346 1,713 1,815 1,712 1,626 1,726 1,883 Argentina 3,056 3,682 4,476 4,716 4,767 5,743 6,099 5,559 5,648 5,925 6,422 Bolivia 98 124 145 136 163 205 218 198 205 231 270 Brazil 6,099 7 257 8 574 7,704 8 138 9,392 9 505 8,679 8 602 9 165 9 842 Bulgaria 646 1,010 1,340 1,681 1,892 1,983 2,185 2,549 2,367 2,503 2,685 Congo Cote d'lvoire 198 231 282 245 268 281 315 291 281 304 352 Ecuador 328 367 420 430 497 631 646 605 599 726 640 Mexico 3,818 3,909 4,145 3,725 3,256 3,324 3,353 3,233 3,270 3,587 3,882 Morocco 577 732 868 836 930 1,057 1,110 993 974 1,035 1,146 LI) Nicaragua 46 58 69 63 68 595 592 623 698 707 Peru 455 579 730 680 751 866 910 832 806 874 947 Poland 3,084 3,747 4,340 3,742 3,793 4,424 4,026 4,917 4,730 5,167 5,702 Syrian Arab Republic 181 256 327 321 371 591 600 542 522 543 555 Venezuela 2,117 2,123 2,254 2,318 2,262 2,484 2,188 1,981 1,956 2,127 2,319 Severely Indebted Low-Income Countries 4,590 5,657 6,750 5,752 6,113 5,869 6,612 5,891 5,217 5,706 6,179 Moderately Indebted Low-Income Countries 5,477 7,123 8,667 8,022 9,210 9,629 10,886 9,459 9,100 9,938 11402 Moderately Indebted Middle-Income Countries 6,513 7,819 10,756 10,749 11,860 13,177 14,942 14,090 13,189 14,118 15,176 Other Selected Countries 15 838 19 241 23,867 22,917 25,338 28,913 29,780 29,318 28,432 30,899 33,371 Chile 1/ 1,003 1,014 1,048 941 1,007 1,283 1,388 1,329 1,156 1,093 1,166 China 783 786 1,236 1,820 1,746 1,977 2,146 2,001 1,936 2,272 2,279 Colombia 1/ 444 624 764 844 899 1,004 1,035 915 873 958 1,001 Egypt 3/ 1,356 1 810 2,309 2 129 2,424 2 869 2,993 2,684 2,599 2 847 3 121 Hungary 1/ 1,375 1,633 2,592 2,450 3,059 3,073 3,635 3,397 3,227 3,410 3,827 India 2/ 2,190 2,972 3,684 3,409 4,306 4,715 5,120 4,737 4,508 4,931 5,292 Jamnaica I/ Korea 1,084 1,320 1,182 1,154 1,543 2,151 938 2,387 2,579 2,955 3,224 Malaysia 557 663 740 648 659 625 686 609 596 689 872 Nigena 3/ 1,582 1,785 1,803 1,273 1,068 1,253 1,283 1,197 1,046 1,057 1,059 Philippines 1/ 552 612 570 472 436 352 400 379 377 438 461 Thailand 524 616 771 761 945 1,228 1,103 1,563 1,768 1,939 2,184 Turkey 1/ 2 430 3,027 4,561 4 777 5 067 5,897 6 594 5,973 5 814 6,228 6,824 Yugoslavia 1,959 2,378 2,606 2,238 2,179 2,487 2,461 2,149 1,953 2,082 2,062 Offshore Banking Center 18,654 27,863 38,641 39,861 46,144 53,045 55,147 55,941 55,078 58,205 64,390 Oil Exportera 10,141 12,257 13,670 13,676 15 765 22 526 24 062 29,858 29,320 32,293 36 898 DRS reporter 4,989 5,340 5,889 5,638 5,706 6,681 7,010 6,594 6,170 6,522 7,520 DRS Reporting Countries 49,135 58,499 70,497 67,091 72,281 82,399 84,936 83,463 81,019 88,559 96,900 * Partly consolidated aggregate claims of German banks and their worldwide operations. 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Deutsche Bundesbank, Statistische Beihefte zu den Monatsberichten der Deutschen Bundesbank, Reihe 3. Table 9b DEVELOPING COUNTRIES CLAIMS ON BANKS IN GERMANY* (in millions of USS) 1985 1986 1987 1988 1989 1990Q3 1990Q4 1991Q1 1991Q2 1991Q3 1991Q4 All Developing Conmtries 35,206 45,408 56,922 54,318 61,834 87,397 94,286 90,013 86,353 94,209 106,357 By GeographicR ByAfrica,South or Sahara 3,599 4,497 5,192 4,293 4,470 4,881 5,282 4 519 4 274 4,757 5,203 East Asia & Pacific 3,728 4,785 6,050 5,675 6,442 7,534 6 800 7,635 7,741 8,629 9,758 Europe&theMediterranean 11,035 13,801 17,635 17,271 20,671 38,763 44,157 42,362 40,368 45,295 51,557 Latin America & the Caribbean 7,066 9,201 11,574 11,512 12,805 16,252 17,019 16,718 116,324 17,492 19,350 North Africa & the Middle East 6,140 8 198 10,324 9,941 11,033 12,860 12,965 11,245 10,916 11,256 12,520 SouthAsia 3,638 4,926 6,148 5,626 6,411 7,106 8,064 7,535 6,731 6,781 7,970 Severely Indebted Middle-lncome Countries 10,288 13,081 16,024 16,173 17,727 20,640 21,774 22,110 21,790 23,366 25,825 Algeria 708 750 917 1,089 1,213 1,580 1,671 1,578 1,451 1,532 1,693 Ar"entina 1,245 1,663 2,220 2,277 2,570 3,121 3,443 3,075 3,290 3,422 3,813 Bolivia 98 124 145 136 163 205 218 198 205 231 270 Brazil 2,940 3,925 4,792 4 599 4,893 5 459 5 658 5,130 4 979 5,279 5,738 Bulgaria 476 747 969 1,255 1,488 1,595 1,774 2,175 2,005 2,114 2,321 Congo Cote d'lvoire 198 231 282 245 268 281 315 250 244 274 317 Ecuador 98 122 137 148 217 297 311 292 309 415 338 Mexico 869 1,001 1,193 1,334 1,417 1,489 1,552 1,835 1,855 1,945 2,229 Morocco 449 616 765 738 861 956 1,009 897 873 945 1,054 Nicaragua 46 58 69 63 68 595 592 623 698 707 a' Peru 283 384 514 476 536 623 663 600 643 706 779 Poland 2,083 2,483 2,851 2,651 2,767 3,156 2,788 3,854 3,711 4,100 4,553 Syrian Arab Republic 181 256 327 321 371 591 600 542 522 543 555 venezuela 614 722 842 841 895 1,288 1,177 1,091 1,079 1,163 1,458 Severely Indebted Low-Income Countries 4,117 5,192 6,116 5,163 5,580 5,112 5 886 5,092 4 720 4,968 5,413 Moderately Indebted Low-Income Countries 4 939 6,602 8,145 7 435 8,270 8,510 9,691 8,019 7,781 8,500 10,003 Moderately Indebted Middle-Income Countries 3,758 4,934 7,652 7,855 9,019 10,615 12,100 11,609 10,653 11,544 12,832 OtherSelectedCountries 10,776 13,976 18,245 17,086 19,593 22,814 23,513 23,058 22,249 24,231 26,609 Chile 1/ 238 283 343 318 505 709 781 771 649 670 743 China 502 620 979 1,177 1,427 1,678 1,850 1,687 1,640 1,761 1,947 Colombia 1/ 251 416 572 589 663 814 868 761 728 780 828 Egypt 3/ 1,350 1,795 2,297 2,117 2,424 2,869 2,993 2,623 2,542 2,788 3,041 Hungary 1/ 505 655 1,428 1,345 1,762 2,121 2,471 2,738 2,450 2,641 3,016 India 2/ 2,120 2,882 3,569 3,231 3,835 4,225 4,590 4,098 3,959 4,343 4,720 Jamaica 1/ 382 560 705 577 877 1,182 0 1,474 1,675 1998 2,211 Malaysia 271 369 446 375 338 264 221 182 179 210 264 Nigeria 3/ 1,265 1,447 1,368 908 763 845 872 786 741 753 772 Philinnines 1/ 147 216 314 276 298 277 324 298 341 361 390 M Taifind 403 489 563 491 605 703 756 718 739 830 1,002 Turkey /l 2 028 2,589 3 905 4,170 4 451 5,190 5,782 5,171 5,033 5,404 6,012 Yugoslavia 1,316 1,655 1,755 1,510 1,644 1,936 2,006 1,750 1,574 1,691 1,665 Offshore Banking Centers 7,408 11,715 16,152 14,637 18,726 19,759 19,956 18,194 16,736 17,679 19,873 Oil Exporters 6,786 8,429 9 564 9 014 10,838 17,998 19,771 26,311 25,377 28,391 32,829 DRS reporters 2,935 3,350 3,743 3,523 3,642 4,635 5,032 4,713 4,449 4,890 5,724 DRS Reporting Countries 29,811 38,132 48,146 46,117 52,047 59,902 62,660 62,020 59,973 65,693 73,666 * All resident banks. 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Deutsche Bundesbank, Statistische Beihefte zu den Monatsberichten der Deutschen Bundesbank. Reihe 3. Table 10a FRENCH COMMERCIAL BANK CLAIMS ON DEVELOPING COUNTRIES * (in millions of US$) 1985 1986 1987 1988 1989 1990Q2 1990Q3 1990Q4 1991Q1 1991Q2 Al Developing Countries 70,448 81,442 87,687 95,390 89,973 83,182 86,289 84,237 80,799 77,543 By Geographk Re ion Africa, Southofr te Sahara 9,755 11,145 12,890 15,537 11,740 11,579 11,813 12,107 11,123 10,630 East Asia & Pacific 6,832 9,829 8,179 9,907 13,601 12,895 14,366 15,019 15,727 15,546 Europe & the Mediterranean 13 659 16,909 18,915 21,129 21,774 19 662 19,109 16,745 17,054 15 308 Latin America & the Caribbean 21,306 22,614 23 463 24,863 21,764 18,165 19,423 18,559 17,993 17,295 North Africa & the Middle East 15 381 17,253 19,712 19,554 19,215 19 055 19,634 19,813 16,973 17 018 South Asia 3,516 3,692 4,528 4,400 1,880 1,826 1,944 1,994 1,928 1,746 Severely Indebted Middle-Income Countries 28,854 30,984 33,409 31,569 32,345 28,927 30,728 29,660 27,418 26,432 Algeria 3,730 4,806 5,856 5,077 5,335 6,022 6 403 6,530 5 539 5 202 Arfentina 1,877 2,005 2,136 2,299 2,265 2,087 2,158 2,169 2,383 2,255 _oSlvia . . . 36 27 21 21 21 20 21 Brazil 8,081 8,655 8,917 8,579 8,463 7,962 8,552 8,466 8,018 7,704 Bulgaria . . . 731 936 839 866 755 623 628 Congo 934 1,102 1,204 898 809 711 751 751 645 674 Cote d'Ivoire 1,651 1,961 2,283 1,991 2,045 1,956 1,997 2,036 1,850 1,750 Ecuador 150 161 161 173 188 209 216 Mexico 5 346 5 528 5 535 4,559 4 995 2,202 2 307 2 400 2 247 2 367 Morocco 2,165 2,286 2,495 2,004 2,081 2,164 2,306 2,321 2,125 1,969 Nicaragua 6 69 56 53 54 54 49 45 Peru 666 625 659 660 864 690 669 703 Poland 1,742 1,680 1,790 1,419 1,383 1,342 1,458 1,375 1,254 1,139 VSyriaArab Republic 275 359 386 352 319 311 288 259 310 301 Vnzea 2,387 2,602 2,806 2,779 2,810 2,436 2,530 1,644 1,478 1,458 Severely Indebted Low-Income Countries 4,961 5,421 5,98 7,740 7,564 7,600 7,817 8,026 7,303 7,268 Moderately Indebted Low-Income Countries 2,799 2,997 3,431 3,977 3,898 3,732 4 104 4,276 4,289 3 952 Moderately Indebted Middle-Income Conutres 2,224 4,239 5,144 7,954 8,551 8,731 9,068 9,247 8,405 8,669 Other Selected Countries 12,658 17,049 14,665 16,952 19,298 18,870 19,895 20,474 19,712 19,304 Chile 1/ 395 563 528 499 608 586 461 China 1,374 2,125 2,362 2,592 2,656 2,507 2,521 Colombia 1/ 432 414 419 533 503 518 504 Egypt 3/ 2,431 2,629 2,985 2,670 2,782 2,705 2,696 2,787 2,410 2,491 hungary 1/ 699 736 634 590 469 325 269 India 2/ 947 1,115 1,313 1,347 1,378 1,395 1,394 1,462 1,418 1,244 Janaica 1/ 40 34 40 31 30 26 22 Korea 2,683 5,517 3,289 3,522 4,309 3,528 4,058 4,537 4,587 4,522 Malaysia 951 870 609 449 398 440 432 458 386 Nigeria 3/ 2,530 2,793 3,013 2,498 2,037 1,924 1,893 1,837 1,735 1,626 Philippines 1/ 1,347 1,560 1,319 867 1,141 1,239 1,171 1,176 1,149 1,579 Thailand 773 897 1,009 1,086 1,361 996 Turkey 1/ 863 1,041 1,274 1,379 1,695 1,849 1,894 1,730 1,968 Yugoslavia 1,770 1,703 1,704 1,223 1,178 1,107 1,141 997 904 718 Offshore Banking Centers 26 595 26,012 36,579 27,745 30,482 33,563 37,249 39,617 43,818 43,532 Oil Exporters 18,001 21,306 24,207 24,921 27,810 25,283 24,618 23,034 19,847 18,777 DRS reporters 9,581 12,206 13,938 13,869 14,344 14,260 14,478 13,737 11,826 11,291 DRS Reporting Countries 59,308 69,627 71,529 76,767 76,064 71,173 75,546 75,481 71,859 69,455 * Consolidated claims of French banks and their worldwide operations. 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Banque de France, Bulletin Trimestriel. Table 10b DEVELOPING COUNTRIES CLAIMS OF BANKS IN FRANCE * (in millions of US$) 1985 1986 1987 1988 1989 1990Q2 1990Q3 1990Q4 1991Q1 1991Q2 All Developing Coumtries 63,119 65,095 72,730 67,383 69,740 65,642 66,812 66,793 61,510 58,021 By Geographic Region Africa, South of theSahara 12,157 10,070 11,611 10,537 10,447 10,242 10,505 10,601 9,587 9,087 East Asia & Pacific 5,192 5,624 4,772 6,607 6,591 6,822 7,580 8,031 7,758 7,217 Europe & the Mediterranean 14,173 14,494 15,868 15,864 17,603 16,264 15,618 15,014 13,868 12,255 Latin America & the Caribbean 17,827 19,378 20,608 18,627 18821 15 112 15,739 15,271 14,829 14,135 North Africa & the Middle East 12,809 14 458 16,460 14 594 15 154 16 091 16 155 16 588 14 307 14,203 South Asia 961 1,071 3,411 1,155 1,123 1,112 1,215 1,286 1,161 1,124 Severely Indebted Middle-Income Countries 25,022 28,010 30,731 28,489 28,872 25,132 26,370 25,570 23,687 22,784 Algeria 3 587 4,616 5,536 4,799 4,919 5 398 5,812 5 757 5 029 4 732 Argentina 1,634 1,772 1,937 2,093 1,988 1,847 1,884 1,879 1,920 1,865 Bolivia . . . 35 27 21 21 21 20 21 Brazil 7,750 8,291 8,548 7,824 7,745 7,242 7,443 7,416 7,021 6,739 Bulgaria 668 806 720 743 687 556 563 Congo 908 1,066 1,145 847 789 704 759 723 617 639 Cote d'lvoire 1,595 1,902 2,181 1,895 1,972 1,790 1,920 1,887 1,716 1,612 Ecuador 137 150 108 112 128 133 144 Mexico 3,638 4,192 4,634 3,665 3,891 1,248 1,329 1,438 1,404 1,471 Morocco 2,105 2,190 2,394 1,926 2,006 2,022 2,106 2,116 1,888 1,786 Lo Nicaragua 65 52 49 49 50 45 41 X0 Peru 548 655 639 661 664 625 616 Poland 1,707 1,640 1,740 1,316 1,251 1,219 1,329 1,260 1,172 1,069 Synran Arab Republic 260 346 367 333 298 302 281 253 303 290 Venezuela 1,838 1,996 2,251 2,337 2,322 1,823 1,920 1,294 1,239 1,195 Severely Indebted Low-Income Countries 4,332 4,772 ., 5,251 6,735 6,419 6,563 6,715 6,948 6,158 5,915 Moderately Indebted Low-Income Countries 2,232 2,560 1,801 2,777 2,722 2,692 3,031 3,049 2,881 2,741 Moderately Indebted Middle-Income Countries 1,739 2,593 3,484 7,034 7,106 7,589 7,543 7,673 6,851 6,464 Other Selected Countries . 10,168 10,822 9,855 12,996 12,762 13,170 13,777 14,069 12,768 12,068 Chile It 335 435 409 401 457 441 348 China 376 247 724 1,329 1,611 1,903 2,053 1,941 1,979 Colombia 1/ 313 296 295 389 361 367 388 Eypt 3/ 2,263 2,422 2,761 2,485 2,502 2,518 2,509 2,643 2,267 2,205 Hungary 1/ 597 611 573 518 416 268 206 India 2/ 639 772 735 735 733 741 802 726 713 Jamaica 1/ 48 40 31 34 24 23 19 16 Korea 1,602 1,754 1,996 1,921 1,697 1,695 1,834 1,841 1,780 1,562 Malaysia 678 669 491 364 315 327 354 283 180 Nigeria 3/ 2,036 2,307 2,490 2,012 1,613 1,453 1,446 1,438 1,273 1,243 Philippines 1/ 742 853 975 1,022 842 968 987 1,013 930 907 Thailand III h n. 116 IS7 14R 167 17 241 229 Turkey 1/ 1,054 1,048 1,380 1,448 1,528 1,371 1,413 Yugoslavia 1,681 1,600 1,633 1,148 1,102 1,038 1,083 953 861 680 Offshore Banking Centers 12,040 12,504 20,288 21,772 27,233 29,251 31,740 35,028 30,071 30,385 Oil Exporters 15 398 19,165 21,291 20,991 22,351 20,863 20,240 19 421 17,078 15,914 DRS reporters 8,538 11,125 12,629 12,126 12,122 11,934 12,211 11,715 10,309 9,902 DRS Reportin Countries 53,846 54,593 57,056 60,463 62,333 58,369 60,583 61,921 55,869 53,927 All resident banks. 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Banque de France, Bulletin Trimestriel. Table 11 SWISS COMMERCIAL BANK CLAIMS ON DEVELOPING COUNTRIES (in millions of USS) 19S4 19S5 1986 1987 1988 1989 1990 All Developing Countries 13,484 16,835 19,713 24,609 21,948 21,810 25,473 By Geographic Region Africa, Southofthe Sahara 1,212 1,388 1,649 1,815 1,771 1,S82 7,178 East Asia & Pacific 903 1 163 1,618 1,835 1,589 1,796 2,130 Europe & the Mediterranean 2,897 4,236 5,390 7,247 7,152 7,567 8,411 Latin America & the Caribbean 6,022 6,804 6,896 7,442 6,763 6 412 7,901 North Africa & the Middle East 2,287 2,847 3,619 5,446 4,213 3,753 4,279 South Asia 163 396 541 823 461 401 573 Severely Indebted Middle-Income Countries 5,882 6,833 7,305 8,131 7,316 6,947 8,466 Algeria 171 209 226 392 296 301 338 Bolivitjna 1,120 1,276 1,329 1,512 1,428 1,207 1,414 11~~~~~~~~~ia ~~~~~~~~22 15 17 20 30 10 12 Brazil 1,630 1,707 1,900 2,402 2,127 2,197 2,862 Bulgaria 126 222 368 450 483 444 482 Congo 7 9 3 2 3 2 2 Cote d'lvoire 90 88 131 121 95 111 104 Ecuador 85 85 49 45 41 72 107 Mexico 1,427 1,744 1,746 1,629 1,403 1,322 1,716 Morocco 80 85 114 130 123 103 151 Nicaragua 14 83 94 92 96 103 110 '.0 Peru 130 205 93 88 191 84 108 Poland 330 407 477 502 372 379 449 Syrian Arab Republic 38 43 41 33 32 35 23 Venezuela 612 655 718 713 597 579 587 Severely Indebted Low-Income Countries 1,379 1,644 2,016 2,106 1,946 1,892 2,066 Moderately Indebted Low-Income Countries 339 547 742 996 644 625 893 Moderately Indebted Middle-Income Countries 2,144 2,538 2,619 3,374 2,947 2,578 3,413 Other Selected Countries 3,501 4,514 4,947 6,018 4,772 4,319 5,791 Chile I/ 583 544 330 255 249 193 304 China 7 78 20 81 196 276 363 Colombia 1/ 152 148 203 158 190 194 181 Egypt 3/ 444 535 694 690 564 454 504 nungary 1/ 169 251 249 389 315 297 294 India 2/ 116 327 449 699 336 250 379 Jamaica 1/ 4 22 16 38 4 13 21 Korea 299 368 473 398 247 336 584 Malaysia 156 212 230 174 65 58 79 Nigeria 3/ 271 279 325 466 364 311 320 Philippines 1/ 166 199 185 270 185 199 178 Thail and 72 111 128 206 246 267 401 Turkey 1/ 778 1,075 1,277 1,780 1,479 1,202 1,865 Yugoslavia 283 364 368 415 332 269 317 Offshore anking Centers 10,310 13,300 19,091 21,028 19,620 18,116 21,133 Oil Exporters 2,123 2,942 3,949 6,270 5,472 5 992 6,380 DRSporters 1,559 1,696 1,901 2,376 2,017 1,994 2,291 DRS Reporting Countries 15,319 18,201 20,925 24,606 21,431 20,971 25,007 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Banque Nationale Suisse, Les Banques Suisses. Table 12 ITALIAN COMMERCIAL BANK CLAIMS ON DEVELOPING COUNTRES (in millions of US$) 1987 1988 1989 1990 1991Q1 1991Q2 1991Q3 All Devdoping Countries 13,448 13,642 14,656 16,444 16,316 15,903 16,034 By Geogrphk Region Africa, South of the Sahara 1821 602 680 641 890 808 805 East Asia & Pacific ill 99 58 142 89 114 107 Europe & the Mediterranean 5,666 6,377 7,066 7,396 6,718 6,506 7,117 Latin Anmerica & the Caribbean 4,915 4,650 4,560 5,637 5,479 5,362 5,237l North Africa & the Middle East 1,014 881 962 858 976 1,039 740 South Asia 921 1,033 1,329 1,770 2,163 2,074 2,028 Severely Indebted Middle-Income Countries 6,360 6,091 S,940 7,612 7,469 7,338 7,142 Algeria 1,311 1,249 1,054 1,710 1,598 1,694 1,472 Bolainia 1 5 5 6 7 9 Brazil 956 932 845 941 972 875 922 Bulgaria 222 234 323 431 448 458 495 Congo 4 2 2 4 3 1 20 Cote d'Ivoire 42 28 22 43 30 19 20 Ecuador 142 98 135 156 155 142 137 Mexico 1,454 1,415 1,442 1,728 1,677 1,620 1,697 Morocco 362 361 354 327 444 429 308 Nicaragua Peru 213 155 139 118 112 112 102 Poland 1,197 1,150 1,089 1,548 1,454 1,429 1,410 Svrian Arab Republic Venezuela 460 469 533 605 572 552 570 Severely Indebted Low-Income Coumtries 130 113 202 446 860 789 785 Moderately Indebted Low-Income Countries Moderately Indebted Middle-Income Countries 876 989 937 881 785 815 785 Other Selected Countries 1,354 1,412 1,493 1,613 1,904 1,840 1,812 Chile 1/ 169 176 209 219 234 188 173 China Colombia 1/ 186 122 160 97 95 103 102 EBypt 3/ Hungary 1/ 387 558 471 365 310 342 349 India 2/ Jamaica 1/ Korea Malaysia Nigeria 3/ 130 113 202 446 860 789 785 Philippines 1/ 111 99 58 142 89 114 107 enaisanu Turkey 1/ Yugoslavia 371 344 394 344 315 304 296 Offshore Banking Centers . - 12,885 18,493 21 263 20,530 19,859 Oil Exporters 590 582 735 5,565 5,485 5,189 5 791 DRSreporters 590 582 735 1,051 1,433 1,341 1,355 DRS Reporting Countries 8,645 8,251 8,399 9,948 10,066 9,949 9,535 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Banca d'Italia, Bolletino Economico. Table 13 JAPANESE COYMMERCIAL BANK CLAIMS ON DEVELOPING COUNTRIES * (in millions of US$) 1987Q1 1987Q3 1988Q1 All Developing Countries 73,751 75,199 82,711 By Geographik Region Africa, South of the Sahara 2 878 3,044 3 322 East Asia & Pacific 21,292 21,248 24,971 Europe & the Mediterranean 10,244 11,227 12,014 Latin America & the Caribbean 33,623 33,776 35,617 North Africa & the Middle East 4,053 4,021 4,216 South Asia 1,661 1,883 2,571 Severely Indebted Middle-Income Countries 34,869 35,230 37,183 Algeria 2 695 2 690 2,852 Arentina 5,227 4,982 5,611 MD ivia ~~~~~~~~~~~~~~~~~~~~~~~~~~3 2 3 Brazil 9,241 9,132 9 723 Bulgaria 952 1,132 1,172 Congo Cote d'Ivoire 154 156 160 Ecuador 801 791 879 Mexico 10,495 11,058 11,372 Morocco 485 471 525 Nicaragua 16 16 15 p. Peru 337 335 337 1- Poland 676 674 708 Srian Arab Republic Veneuelela 3,787 3,791 3,826 Severely Indebted Low-Income Countries 2 619 2 683 2,914 Moderately Indebted Low-Income Countries 6,756 6,992 8,216 Moderately Indebted Middle-Income Countries 8,692 8,757 9 414 Other Selected Countries 24 170 24 347 28,422 Chile 1/ 1,532 1,570 1,647 China 2,470 3,132 4,578 Colombia I/ 1,259 1,189 1,216 Egypt 3/ 17 20 20 Hungary 1/ 3,228 3,391 3,643 India 2/ 1,409 1,626 2,190 Jamaica 1/ 17 17 18 Korea 5 720 4,777 5,413 Malaysia 2,949 2,838 3,041 Nigeria 3/ 272 304 297 Philippines 1/ 2 340 2,282 2 583 Thailand 2,187 2,429 2,929 Turkey 1/ Yugoslavia 770 772 847 Offshore Banking Centers 12 673 15,070 17,447 Oil Exporters 11,993 12 550 13 084 DRS repofters 7,800 7 810 7 994 DRS Reporting Cotntries 73,372 74,315 82,143 * Consolidated claims of Japanese banks and their worldwide operations; Medium and long-term claims. 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: Japan Center for International Finance. Table 14a DUTCH COMMERCIAL BANK CLAIMS ON DEVELOPING COUNTRIE * (in millions of USS) 1987 1988 1989 1990Q2 1990Q4 1991Q2 All Developing Countries 11,772 11,891 12,795 14,260 15,746 16,065 By Geographic Re fiol Africa, ou e Sahara 961 972 1,085 1,088 1,004 966 East Asia & Pacific 1.262 1.256 1.517 1.715 2.093 2.604 Europe & the Mediterranean 2,467 2,886 2,953 3,473 3 441 3,453 Latin America & the Caribbean 4,739 4,584 4,968 5,346 6,823 6,898 North Afric-a & the Middle East 1,383 1,293 1,300 1,572 1,336 1,615 South Asia 960 900 971 1,068 1,050 528 Severely Indebted Middle-Income Countries 4,160 4,202 4,103 4,368 5,849 5,911 Algeria 546 512 511 516 550 616 Argentina 1,097 1,079 960 1,020 1,107 1,028 Brazil 866 850 819 948 1,102 1,445 Bulgaria Congo Cote d'lvoire Ecuador 238 241 264 319 2.55 Mexico 943 890 995 972 1,697 1,591 Morocco Nicaragua Peru . Poland 312 245 210 230 295 324 Syian Arab Republic Venezuela 396 388 368 417 779 652 Severely Indebted Low-Income Countries 333 265 491 476 356 Moderately Indebted Low-Income Countries 970 867 897 1,020 1 ,099 1,217 Moderately Indebted Middle-Income Coumtries 640 1,052 1,423 1,437 1,243 Other Selected Countries 333 659 1,195 1,561 1,555 1,838 Chile 1/ 99 428 475 389 421 China .... 285 Colombia 1/ Hungary 1/ 295 305 309 270 India 2/ Jamaica 1/ Korea ... 313' Malaysia Nigenia 3/ 333 265 195 189 149 Philipirses 1/ Turkey 1/ i ° 290 436 436 Yugoslavia Offshore Banking Centers 9,021 8,416 10,715 13,044 13,944 12,363 Oil Exporters 2,160 2 283 2 292 2 324 2 482 2,700 DRS reporters 1,275 1,165 1,073 1,122 1,478 1,268 DRS Reporting Countries 9,386 9,191 10,087 11,356 12,615 12,903 - Consolidated claims; Only partial country breakdown available. 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: De Nederlandsche Bank , Ouarterly Bulletin. Table 14b CLAIMS ON DEVELOPING COUNTRIES OF BANKS IN NETHERLANDS* (in millions of US$) 1984 1985 1986 1987 1988 1989 1990 1991Q1 1991Q2 1991Q3 1991Q4 All Developing Countries 5,733 6,155 6,896 9,486 8,174 7,807 8,139 8,272 8,412 8,384 8,951 By Geographic Reion Africa, South oftheSahara 709 716 703 693 694 1,049 784 861 East Asia & Pacific 871 878 791 981 1,108 996 1,293 1,294 Europe & the Mediterranean 827 1,120 1,301 2,792 2,065 2,218 2,398 2,579 2,454 2,469 2,615 Latin America & the Caribbean 4,328 4,416 5,040 3,379 3,266 2,998 3,104 2,928 3,077 2,989 3,131 North Africa & the Middle East 579 620 555 1,243 743 654 659 627 623 634 778 South Asia 492 506 443 304 336 212 216 272 Severely Indebted Middle-Jiscome Countries 314 286 341 3,211 2,915 2,607 2,562 2,482 2,481 2,449 2,520 Algeria 488 364 301 277 232 188 215 199 Argentina 905 768 743 557 628 629 627 675 Brazil 482 463 433 536 492 480 469 493 Bulgaria 39 26 80 114 Congo Ecuador 221 212 212 197 194 192 196 Mexico 642 575 498 534 535 535 464 424 Morocco X.- Nicaragua . w Peru Poland 275 260 261 289 247 180 230 250 222 256 309 Syrian Arab Republic. ......... . VenAeazuela . 292 277 240 217 147 233 226 223 Severely Indebted Low-Income Countries . 283 234 335 301 292 325 Moderately Indebted Low-Income Countries 768 644 610 655 719 588 657 666 Moderately Indebted Middle-income Countries 97 156 217 478 272 436 678 712 609 471 502 Other Selected Countries 97 156 217 760 505 569 667 648 695 494 525 Chile 1/ 51 74 68 74 65 64 China . 26 27 45 Colombia I/.......... . E y t 3/........... 1iungary 1/ 97 156 217 478 272 281 218 204 153 India 2/ Iamaica 1/ . . . . . . . .... Jamaica 1/ 994 8 Korea ........ 69 94 89 Malay la Nigeria 3/ 282 233 167 122 102 87 Phili'pines I/........... Thai and . . . . 70 44 37 40 40 49 Turkey 1/ . . . . . . 209 237 246 267 278 Yugoslavia . . . . . . . . Offshore Banking Centers . . . 6,466 6,000 7,374 11,155 10,395 10,378 9,851 9,354 Oil Exporters 281 550 605 1,733 1,561 1,646 1,334 1,224 1,156 1,189 1,345 DRg reporters . . . 1,062 874 707 616 481 509 441 4 DRS Reporting Counttries 3,163 3,415 6,291 8,159 6,695 6,428 6,876 6,941 6,811 6,361 6,791 All resident banks; Only partial country breakdown available. 1/ Also included in Moderately Indebted Middle-lncome Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. Source: De Nederlandsche Bank , Ouarterly Bulletin. Table 15a FUNDS RAISED ON INErRNATIONAL CAPITAL MARKETS (in millions of US$) 1984 1985 1986 1987 1988 1989 1990 1991Q2 1991Q3 1991Q4 1992QI A. All Developing Countries 33,762 32,139 27,930 34,234 31,654 26,197 31,494 12,987 8,416 14,198 10,172 Bonds 3,425 7,295 4,805 4,878 8,719 7,009 7,704 3,227 2,935 4,010 4,722 International 2,392 5,552 2,739 3,397 5,794 4,345 5,757 2,021 2,697 2,833 2,858 Foreign 1,033 1,743 2,066 1,481 2,925 2,664 1,948 1,206 238 1 177 1 864 Loans 30,337 24,844 23,125 29,356 22,935 19,187 23,790 9 761 5,481 10,188 5,450 International 28 627 23 224 19,844 26,102 19 706 17,975 23,089 9,640 5,380 10,188 5,336 Foreign 1,710 1,620 3,281 3,254 3,229 1,213 701 120 102 . 115 By Geograpbic Region Africa, South oftheSahara 110 491 101 315 170 258 871 235 130 30 East Asia & Pacific 10,942 14,368 11,152 10,447 8,623 8,459 13,781 5,381 4,696 3,743 3,556 Europe&SctheMediterranean 3,061 5,838 10,180 9,979 11,590 10,628 10,633 1,644 1,664 2,558 1,699 Latin America & the Caribbean 16,038 6,366 1,422 10,340 7,284 2,051 4,242 1 133 1,926 1,820 1,984 North Africa & the Middle East 2,387 3,931 3 090 830 1,392 2 403 247 4,500 . 6,011 2,920 South Asia 1,224 1,145 1,985 2,324 2 ,595 2,397 1,720 95 * 36 14 Severely Indebted Middle-Income Countries 15,144 6,242 2,290 10,726 7,161 1,556 3,997 933 1,896 1,866 1,984 Algeria 240 1,450 1,345 344 795 397 . 61 Argentina . 3,700 17 2,305 14 . 300 425 215 Brazil 6,521 350 5,200 100 812 400 770 Bulgaria . 475 45 260 194 580 Congo 13 Cote d'lvoire . 153 Ecuador . 200 220 32 40 euMexico 8,110 109 313 7,700 310 2,350 933 560 623 399 X. Morocco 107 . 25 130 6 52 Nicaragua Peru Poland 260 30 . 163 Venezuela 48 30 828. 1,595. 225 356 600 Severely Indebted Low-Income Countries 81 208 61 120 40 652 385 170 75 Moderately Indebted Low-Income Countries 2,984 1,626 3,329 4,070 3,603 5,098 6 934 1,568 2,475 731 493 Moderately Indebted Middle-lncome Countries 3,149 6,796 4,476 5,389 5,536 6,363 4,712 1,010 1,547 987 680 Other Selected Countries 12,749 20,283 15,576 15,758 15,369 13,593 12,640 4,733 3,507 3,530 3,454 Chile 1/ 780 1,085 . 151 285 China 309 3,245 3,336 4,757 3,846 1,761 696 214 524 812 625 Colombia 1/ 364 1,052 240 137 1,000 1,641 * 200 pgpt 3/ 48 158 ... 500 Hungary 1/ 1,167 1,642 1,316 1,950 1,016 1,709 987 186 688 388 365 India 2/ 1,050 863 1,796 2,156 2,482 2,047 1,242 . . . 14 Jamaica I/ 30 .. 30 Koma 5 338 6 043 3,252 2,788 1,533 1,322 3,982 2,759 764 1,351 1,280 Malaysia 2,100 1,959 1,204 555 1,133 541 759 . 108 50 166 Nigeria 3/ iniiippines ii 9S - I.7 Thailand 1,076 1,638 1,677 463 1,021 1,059 1,475 580 564 346 689 Turkey I/ 517 1,659 2,755 2,902 3,187 3,013 2,498 624 829 584 315 Yugoslavia . 14 . 20 . . . . Offshore Banking Centers 1,770 2,378 1,661 1,317 1,103 4,038 4,686 687 659 467 373 Oil Exporters 2,895 5,203 4 802 1,504 4,485 3,560 5,037 4,670 225 848 3,500 DRSreporters 910 3,029 2,732 640 1,807 797 1,710 170 225 848 600 B. OECD Countries 204 063 228,734 284,633 255,787 324,999 341,669 308,784 84,659 89,766 95,273 98,431 C. Multilateral Institutions 9,812 12,936 8,050 11,872 10,517 12,932 15,419 2,065 4,658 3,563 5,978 § D. Other 2,234 3,285 1,733 634 1,128 555 644 724 206 289 157 Grand Total * 251,641 279,472 324,007 303,844 369,402 385,390 361,027 101,124 103,705 113,791 115,111 1/ Also included in Moderately Indebted Middle-income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. * (A+B+C + D+Offshore banking centers). Source: Organization for Economic Cooperation and Development, Financial Statistics Monthly. Part 1. Table 15b LOANS RAISED ON INTERNATIONAL CAPITAL MARKETS (in millions of USS) 1984 1985 1986 1987 1988 1989 1990 1991Q2 1991Q3 1991Q4 1992QI A.Ltoans 30,337 24,844 23,125 29,356 22,935 19,187 23,790 9,761 5,481 10,188 5,450 International 28 627 23,224 19 844 26 102 19 706 17,975 23,089 9,640 5,380 10,188 5,336 Foreign 1,710 1,620 3,281 3,254 3,229 1,213 701 120 102 115 By Geographic Region Africa,South ofthcSahara 110 491 101 315 170 258 871 235 130 30 East Asia & Pacific 8,478 9,041 8560 8389 6,706 6,909 11,191 4,062 4,204 3,075 2,186 Europe & the Mediterranean 2,780 5 065 9,069 7,961 6,792 5,996 7,015 362 1,117 1,021 230 Latin America & the Caribbean 15,931 6,216 770 9,989 6,447 2,051 3,269 508 30 15 100 North Africa & the Middle East 2,112 3,304 2,964 746 939 2,244 247 4,500 6,011 2,920 South Asia 926 727 1,661 1,956 1,881 1,729 1,197 95 36 14 Severely Indebted Middle-Income Countries 15,144 5,693 1,551 10,482 5,888 1,067 3,024 308 61 100 Algeria 240 950 1,219 295 362 238 . . 61 Arfentina . 3,700 17 2,110 14 Brazil 6,521 50. 5,200 100 Bulgaria . 7 45 260 112 250 Congo 13 Cote d'lvoire . 153 Ecuador . 200 220 32 Mexico 8,110 60 . 7,700 . 310 1,580 308 100 Morocco . 107 . 25 130 6 52 4- Nicaragua Ln Peru Poland 260 30 163 V=ezuela 48. 30 70' 1,392. Severely Indebted Low-lIcome Countries 81 148 61 120 40 652 385 170 75 Moderately Indebted Low-Income Countries 2,636 1,208 2,705 3,677 2,668 4,255 5,586 1,508 2,475 697 459 Moderately Indebted Middle-Ilcome Countries 3,108 6,286 3,979 4,473 3,560 4,223 3,104 562 1,000 222 OthserSeletctd Countries 10,038 13,988 12,517 12,462 11,015 9,646 8,744 3,100 2,509 2,196 1,438 Chile 1/ 780 1,085 . 151 9 285 2 China 227 2 272 1,974 3,222 2,935 1,610 696 214 378 694 475 Colombia 1/ 364 1,052 201 87 1,000 1,641 . 200 Egypt 3/ 48 98 500oo50 lfungary I/ 1,126 1,195 1,025 1,396 200 765 40 . 141 India 2/ 752 445 1,472 1,809 1,768 1,379 719 . , . 14 Jamaica 1/ 4,1 . 30 . 30 Korea 4 282 4,312 2,469 2,506 1,403 994 2,466 1,574 458 930 394 Malaysia 1,150 218 1,161 339 772 112 559 1 108 50 166 Nigeria 3/ . . . . . .0 Phili'nes 1/ 7 925 715 Thai'Fapnldne a 792' 776 1,627 463 759 827 1,425 580 564 315 389 Turkey 1/ 517 1,596 2,588 2,590 2,027 1,817 1,838 362 829 207 Yugoslavia . 14 . 20 OffshoreBankingCenters 1,484 1,976 1,032 1,025 778 3,839 4,232 651 659 467 373 Oil Exporters 2,563 4,577 4,676 1,349 2,882 2,509 4,536 4,670 . 491 2,900 DRS reporters 778 2,403 2,606 485 537 638 1,507 170 . 491 B. OECD Countries 82,166 81,766 72,933 90,763 115,069 103,523 101,970 19,210 20,017 33,939 17,391 C. Multilateral Institutions 1,949 2,196 863 1,644 2,498 2,614 443 72 . 77 D. Other 1,012 1,078 687 342 978 365 241 130 156 35 67 Grand Total * 116,948 111,860 98,640 123,130 142,258 129,529 130,677 29,823 26,313 44,706 23,280 1/ Also included in Moderately Indebted Middle-Income Countries. 2/ Also included in Moderately Indebted Low-Income Countries. 3/ Also included in Severely Indebted Low-Income Countries. * (A+ BB+C+D+Offshore banking centers). Source: Organization for Economic Cooperation and Development, Financial Statistics Monthly. Part I. Table 16 SECONDARY LOAN PRICES 1/ (in percent of face value) 1989 1990 1990 1990 1990 1991 1991 1991 1991 1992 1992 Severely Indebted Middle-Income Countries* 26 22 23 22 26 28 34 37 35 37 37 Algeria 81 82 81 81 80 79 84 86 91 83 87 Argentina a/ 13 11 14 13 20 17 27 39 38 42 50 Bolivia 11 11 12 11 11 11 11 9 11 10 12 Brazil b/ 22 24 24 22 25 27 34 36 31 36 33 Bulgaria 5 9 15 21 20 18 17 Congo 15 10 9 8 8 8 7 4 Cote d'lvoire 6 6 4 2 3 6 7 8 9 8 9 Ecuador c/ 14 15 16 17 20 26 22 26 24 22 30 Mexico d/ 36 40 43 43 46 53 56 60 62 63 65 Morocco 38 39 44 38 39 44 48 53 47 42 46 Nicaragua 1 3 4 4 4 2 4 9 8 8 9 Peru 6 5 4 4 4 3 7 17 13 14 15 Poland e/ 18 14 15 13 16 27 29 26 23 20 23 Venezuela f/ 34 40 45 49 50 56 62 70 68 58 63 Other Selected Countries Chile 59 66 66 72 74 85 88 88 90 88 91 Costa Rica g/ 17 21 36 32 34 42 47 52 51 51 59 !Ergypt 40 40 42 43 43 43 45 45 nonduras 20 21 19 19 19 18 20 20 27 27 31 Hun,gary 98 83 85 85 85 85 73 65 Philippies h/ 49 49 52 36 37 48 50 54 51 51 58 Senegal 39 32 36 32 32 33 42 41 43 Uruguay i/ 50 45 49 46 57 52 59 70 75 70 70 1/ Bid Price. a/ GRA (1987 Guaranteed Refinancing Agreement). b/ MYDFA (Multi-Year Deposit Facility Agreement). c/ MYRA (Multi-Year Refinancing Agreement). di Prices atter I-ebruarv i99u reter to par bonus ottered under Krady Inittative e/ DDRA (1988 Debt beferral & Restructured Agreement). f/ Prices after August 1990 refer to par bonds offered under Brady Initiative. g/ Prices after May 1990 refer to Series A par bonds offered under Brady Initiative. h/ Public Sector Restructured including Central Bank of the Philippines. Prices after January 1990 refer to restructured loans offered under Brady Initiative. i/ Prices after December 1990 refer to par bonds offered under Brady Initiative. */ Weighted by commercial bank debt outstanding (Syria is not included in these calculations). Sources: Salomon Brothers, Euroweek, and IECDI. QUARTERLY REVIEW GROUPS AFRICA, SOUTH OF TIEE SAHARA Afm (S) Odh & Uvall A USll AhDa Bthl, Pople.' Rep. of Btwam BDek.. Foo Bunia camnon Cap Verde Cral V m Ru p qaib ic Cam Cua CMoa d'im, Rap. d OJibom EBAt Am Cm. E haadl Guin Elhiopi Gabm Gambia, u Ginnie Ginn Guia-issu KmJa Llberia Madaao M.li MOli Ma h Mhh Meyo M <_a4. Namibia Niew Nigeria Od R oeuma RIwada SeoT - Pu Smp Seydall SorLm Sarnle St. Hle A Dep. S5alm Swaulied Ta_nad Toa UIJ=k Unalloc EAMA (AM) Urepecified Aftra Zair Z7mbih 7Zihee EAST ASIA AND PACMIFC oardn CbiQ Cook ulaA Far E.nt Ol A Untll FUi Fch Popbuhk GiUbert hh bhmla barn D-1k Kampucha, Dom Ko1e, D.P.R. of Km.., Repubio d Lao P.D.R. Malaysia Mekas Dli Proct Mqolh Naen, Rep. of New Cah&dla (Fr.) Nba bMad Oceewa 0dh A lIUA Other Pacific h.d ( Pap. Now Gum PHppia. Sam bled. Thin Toban Ishe Taw Tvwak Vit Na. Wallis a FIa. Wesm St - EUROPE AND THE MEDITERRANEAN Albale Bulgria Cypnr Ct-bclaoahll E1cp Odk A Utall Gibraltar Gmean Hrwy Mlts Od1w Eate Bao Pclrd Pdrtug Roman Tua.Y U.S S.R. Yugoeatl LATlN AMERICA AND THE CAREBBEAN Art-ins AamIs (N) Oth & UeSl A nwi (S) Oth & Unal Ar_ll Anigua Coibih Beli.l Baolls BDril Chile Eaouar Coos Ri. Cuba Duomiale, Rep. G_aihak El Sa5ar Fal}lerd lha G hrm GU0dlcp JImL Gubm (Fr.) Guy. tkil Haodura Pragirn Macthqu Meal.. Mm.a.rsnt Ni_.re St. Christopher Puau St. LAcl St. Vba t St. PIN a Mlqal.. 1.laac DOM/TOM (AM Sur; * Trldad A Tobago TurI a Calm U.lla DOM (A) VirgIo Uleak (Br.) U qpcitAd A _wks Unqafided LAth Amwi Urugay V_hm e NORTH AFRICA AND THE MIDDLE EAST Af&ud- Algeri Eat, Arab Rep, of Iee, hl_gic. ReP. Of b,q bad Joada Kuat LObya on Otr M. Eat Otr Oil Expot Mracco Qa Sald Arbla Syrla Arb Rep. Tumiai Uched Aeb Ealoa Unspecified AS. Yemen. Rap. di SOUTH ASIA Bacgldh BDiun Bur= brlib Maldh_ Nepal Pabietec S. Asia Odb A tUmll. Sri lack Unparfad Ask SEVERELY INDEBTED MIDDLE INCOME COUNTRIES (SIMICS) AleI Ar BOd"iva Brazil BDgua Cro Ccot deltie Rep. of Ecauedor Maxi Mmcm Nicuragua Peru Poued Syrian Aab RAp. V_k SEVERELY INDEBTED LOW INCOME COUNTRIES (SIUCS) Buradl Egypt, Aab Rap. of Epfbaoal Ouna E&hiopOa Guinea Wllaewa Gap.. tioues K. LibeI Madatsecar MalA Maudtaia M _ Myr NiLgr Nigra Sac Ta a Pihp Sir ao Sarnaa Suldar T ars , h UgtrAn Zan Zambia MODERATELY INDEBTED LOW-INCOME COUNTRIES (MIUCS) Rangladsh BDe Fi Pebo's Rep. of CLml Afrka RSp. Caorca bldls Indonesi Maln Pedtrn R ha Sd L1ek Tcgc MODERATELY INDEBTED MIDDLE-INCOME COUNTRIES (MIMCS) Ahal Curm. Chilet Colomia Caa RIca Docane Rep. El Saldor Gaban Gcuanasu Hgai J.ba wlien PbDPPi, Sr" TurEy tuway Yom, Rep. of OFFSHORE BANKING CENTERS Bemov.s Dbrakn Bedos Bnrsas Caymana bled. Hag Kang L Llb Mao Ndet. Aville Otbhr P Spp V uaa Weo bdll (BR) OIL EXPORTERS Algri Angole Brmi Comaga Cabo Gibalur irac. blade Rep. of brq L1b NigrI Onn Oat, Mid Ent Otber, Oil Expert. Quar Sad Aabih Tdncdd A Tdbg UaLied Aab Eire U.S.S.R. Ve_eesa OIL REPORTER DRS REPORTERS Algeria Aohgl Cauto Gab.. il, Macic Rep. of Nigei O0 Trinidad A Tbewg Uried Aab Esirae V _uea 47 REGULAR EXTERNAL PUBLICATIONS INTERNATIONAL ECONOMICS DEPARTMENT (EEC) THE WORLD BANK Global Economic Prospects (GEP) - Annual: Analysis of evolving trends in the world economy, discussion of the medium-term prospects for developing countries, and an in-depth treatment of different aspects of the economic links between industrial and developing countries. World Debt Tables (WDT) - Annual: Analysis of trends and developments in international debt and funance, and comprehensive debt statistics for developing countries, compiled from information gathered through the World Bank's excluisive Debtor Reporting System. Also available are Supplements providing mid-year updates of debt statistics. World Tables - Anriual with update supplement: Provides timely economic, demographic, and social time series data beginning 1969 for 139 economies. Data are presented by country and by aggregates for each region and for analytical groups, making this an ideal reference for international comparisor. Social Indicators ojfDevelopment - Annual: The World Bank's most detailed data collection for assessing human welfare. Country level data and aggregates of regional and income groups are presented for international comparison. Data are presented for three historical periods in the printed volume, but time series data from 1965 to 1989 are available in the STARS diskettes. The World Bank Adas - Annual: An international standard in compilation of GNP per capita and other socioeconomic data, the Atlas covers 185 countries and territories, with statistical tables, maps and graphs. Text is available in English, French, and Spanish. World Development Indicators (Statistical Annex to World Development Report) - Annual: Comprehensive, current data on the main features of social and economic development in more than 180 economnies. Country level information with regional and analytical aggregates for use in international comparison. Socioeconomic Time-series Access and Retrieval System (STARS): Provides comprehensive data in diskettes for use in personal computer. Data collections currently available on STARS diskettes ..nclude World Tables, World Debt Tables, World Development Report and Indicators, Social Indicators of l)evelopment, and African Economic and Financial Data. Updates on Commodity Markets and Prices - Quarterly: Assessment of commodity market developments on a quarterly basis, Commodity price projections are also updated every three months. Financial Flows to Developing Countries - Quarterly: Provides updated analysis of all types and sources of international capital flows to developing countries. Aimed at reporting emerging trends and new developments relevant for developing country access to international finance. For Subscr[ption. Contact: For General Information Contact World Bank Publications International Economics Depar:rnent Box 7247-8619 The World Bank Philadelphia, PA 19179-8619, U.S.A. 1818 H Street, N.W. Washington, D.C., 20433 Telephone Drders: (908) 225-2165 Facsimile orders: (908) 417-0482 Telex orders: WUI 64145 Telephone: (202) 473-3813 Consumer Service: (908) 225-2165 Facsimile: (202) 477-0966