Low-Income Countries (Slics) and Dis- Countrydata in Volume2 Showtotal Debt Service Csse Optionsfor Reducingic
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''.;q A! -X Public Disclosure Authorized i t A W O R L D B A N K B O O K -i i .)"I' 'lj .1.,. _X, I . , WorldDebt Tables 1994-95 External Finance for Developing Countries WorldDebt Tables 1994-95 ExternalFinance for Developing Countries VOLUME 1 ANALYSIS AND SUMMARY TABLES The World Bank Washington, D.C CopyrightC 1994 by the IntcernationulBank for Reodntuction and DcvelopmencTlchWorldBank 1818 H Street,N.W., Washington,D.C 20433, USA Al rgts rerved Manufaiured in the United Ses of America Fist prining December1994 This publicationhas bee compiledby the staffofthe Debt and FunanoeUnit and the IntenationalFinance Division ofthe World BanlesInternational Economics Department The WorldBank does nor acceptresponsibility for the acumacyor completenessof this publication.Any judgmentsexpressed are choseof WorldBank smffor consultantsand do not necessarilyrfiect the viewsof the Boardof ExecutiveDirectors or the governmentsthey represenL The mateial in this publicationis copyrighted.Request for pemissionto reproduceportions of it shouldbe senat the Officeof the Publisherat die addressin the copyrightnotice above. Th WorldBank encourg disseminationof itswork arI willnormally gie permissionprompdy and, whn reproductionis for noncommercialpurposes, without askin a fie Permissionto photocopy portions for dassroom use is granted through the Copyright ClearanceCenter Suite 910, 222 RosewoodDr. Danvers. Massachuset 01923, USA. The completebacidist of publicationsfrom the WorldBank is shownin the annuallnr/c qfP liatiiom whichconans an alpha- betcal tide list and indexesof subjects,authors, and countriesand regions.The latestedition is avilable fec of chargefrom the DistributionUnir OfEce of the Publisher,The World Bank, 1818 H Stree NW, Washington,DC 20433, USA, or from Publications,The WorldBank, 66 avenuedIdna, 75116 Paris, Franmc ISBN 0-8213-2912-X (vol. 1) ISBN 0-8213-2913-8 (voL 2) ISBN 0-8213-2914-6 (2-voL set, with periodic supplements) ISBN 0-8213-2916-2 (EMacts) ISSN 0253-2859 Preface Wo) Deb Tabes1994-95 consist of two vol- nenu theccmputation of ne flows,aggxgatc net umes Volume1 containsanalysis. and commen- resourccflows, and aggret net transfrs;and the tWy on recent developmentsin intemational rlaion betweennet resourceflows and the W2l- financ for developingcountries, together with ance of paymentsExact: definitons of theseand sumnarystatsticaltablesforsdected regional and other terms used in dte Wo4WDebt lze are analticd groups comprising 154 developing found in theSourcesand Definuons sction. countries.Continuing the recentevolution ofthe Two new fratures ave been introducedthis Wlor)Debt Tabs this ycar'sedition providesa year,as part of a continuingeflort tO respondm broader;andmorecomprehensivecoveragcofboththe chnging needsof usersand to improvethe debt and nondebzflows. This years reportalso quality,accessibility, and timelinessof the data containsa specialchaptcr addressingthe ius scriw. emanatingfrom the debt burden of the severely AllagcgattblesinVolume andindividual indebtedlow-income countries (SlICs) and dis- countrydata in Volume2 showtotal debt service csse optionsfor reducingic. due fom 1989through 1993. Volume 2 contains stuasticalcabes on the * Dat on bondsissued by privateentitics with- eternal debt ofthe 137countriesta reportpub- our public guarante have ben compiledfor 1icandpubliclyguaranteeddebtunder the Debtor major borrowersand are shownas part oFpfivare RepuoringSystem (DRS). Reported for the first nongurnrecd debt dine is the long-tem debt of Azebaijan, A cve isalso necery The economicaggre- Cambodia,Croatia. Czech Republic, Mcedoniat gazs presentedin the tablesare prpared for the FYR,Slovak Republic, Slovenia, Tudrmenistan, convcnienceof users; their inclusionis not an andVet Nam.Cambodia andViet Namare clas- endorsementof theirvalue for ecnomic analysis. sifiedaslow-incomecountries,andtherestasmid- Althoughdebt indicatorscan giveusfl informa- die-incomecountries Indonesia and Maldies tion aboutdevelopments in debtsrvicing c2paci- havebeen reclassified as middle-incomeoDuntres, y, condusionsdrawn from them willnot bevalid andAlbania,Arzenia, Ctecdlvoire, Georgi, and unlessaccorpanied by carCfilleconomic evalua- Mongorliaas low-incomecountries. Myanmar is tion.Theaucroeconomicinzormarionprovidedis now classifiedin the EastAsia and Pacificregion. fromstandard sourc, but rany series,especially Forthe conenienceof readers,dcarts on pages for Africancountris, areincomplet; thus it may x ro xii in VolumeI summarizegraphically the beconvenientornecrswto substituteotherdata relaion betweenthe debt sock and its compo- seriesfor thoseused herm D U Acronyms and abbreviations BIS Bankfr n onal Settlements CFA Comm fincie aficiine (fi2nczone) CRS Creditor ReportingSystem (of die OECD) DAC DevelopmentAssistnce Committe (ofthe OECD) DDSR Debt 2anddebt service reduction DRE Debt reductio equivalent DRS Debtor ReportingSystem(ofthc Wodd Bank) mDI Forekgn direct iment GDP Grossdomestic product GNP Grossnaonal poduct IBRD Inmeational Bankfor Recnsuuction and DevelopmendWorldBank IDA InternationalDevelopmentAssociation (oftheWorld Rank) IFC Intranaonal Financ Corporation(of the WordcBank) IMU InternationalMonetary Fund LIMOR Londoninerbank offeredrate LILUC Lessindebted low-incomc country LMC Iess indebtedmiddle-c mecounntry MILIC Moderatey indebtedlow-income country MIMC Moderatey indebredmiddle-income country MYRA Muldyearreshduling agrment NGO Nongovernnml ODA Officialdevelopment assistance ODF Officia developmentfinance OECD Oranisation for Econonic Co-operationand Development OPEC Organizationof PetroleumExporting Councries RXD RevisedEtmal Debt (ReportingSystemofthe WorldBank) SDR Specialdrawing rights (of the IMP SILIC Sevecy indebtedlow-income country SIIMIC Severelyindebted lower-middleincome country SIMIC Severel indebtedmiddle-income country Dolla are curzrentU.S. dollarsunless odwise peified. 111 Contents Prefce v Aaonyms and abbrviations vi Pat 1. Externfi... fordv6ping cuires Summary 3 1. Fnancial flows to developing countries 7 Aggrt resource flows and transl;as 7 Private financng flows 9 Debt flows I I Equity flows 14 Suszainabiliry 16 Fmnancg from official creditors 19 Official development finance 19 Exportcredits 20 Sources of official devdopment asisnce 21 2. DevlDopmnts in extal debt 25 Dbttrends in 1993 and 1994 25 Progressin commercial bank debt stategies 27 Recent Bady-type opeatons 27 Reuctring outsidc the Brady framework 30 IDA Debt Reduction Facility-financed operations 31 Slowdown of debt conversions -31 Secondary market for developing-ountry debt 31 Official debt restructuring 32 Pas Club resuuring 32 Bilateralrescheduling agreements 34 Cbims or the former Soviet Union on developing countries 35 3. Reducing the debt of severly indebted low-income countries 37 Smtrucre ofSILIC debt 37 The extent ofthe debt problem 39 Steps cowardrcsolving the problem 41 Options for resolution 43 The complerantnricy of debt reduction and concessionalfinancing 44 Division of labor 45 vii *1id Pat11. Appixes 1. Debtburden indicatorsand countrydassification 49 2. Externaldebt sructuring Ocober 1993-Scptember1994 63 3. Poitfloo investmentin developingcountries 97 4. External financing through privatizaion 125 5. Trcnds in foreign direct imestment 159 6. Debt conversionprograms 163 Put IIL Sumwy hides Methodology 173 Sourcs and definitions 177 Countrygrouns 185 DRS reporers 185 Non-DRSreporters 189 Summary tables 191 All developing countries 192 EastAsia and the Pacific 196 Europeand CcntralAsia 200 LatinAmerica and the Caribbean 204 Middle Eastand North Africa 208 South Asia 212 Sub-SaharanAfrica 216 Sevcrelyindebted low-income countrics 220 Sevcrelyindebted middle-income countries 224 Moderatelyindebted low-income countries 228 Modeatelyindebted middle-income countries 232 Other developingcountries 236 Low-incomecounrrics 240 Middle-incomecountries 244 East Europeand CentralAsia 248 SpecialProgram of Assistance 252 Tables 1 Officialflows (net) to developingcountries, 1989-94 4 1.1 Aggregatenet long-termresource flows to devloping countries,1989-94 7 1.2 Net privatecapital flows to the privatesector, 1990-93 11 1.3 Intermationalbond issuesby developingcountries, selected years, 1989-94 12 1.4 Portfolioequity flows to developingcountries, by region, 1989-94 14 1.5 Officialfows (net) to developingcountries, 1989-94 20 2.1 Stock of cxternaldebt, 1987-94 25 2.2 Change in exteral debt for all devdoping countris, 1992-94 25 2.3 Debt indicators, sdected years, 1987-94 27 2.4 Recentdcbt and debt servicereduction agreemenr 29 2.5 Debt reducton equivalentof commercialdebt and debt servicereduction operations 30 ir 2.6 CompletedIDA Debt ReductionFacility-financed operations 31 2.7 Debt converted,by typcof program,1985-93 32 3.1 Debt serviceburdens of and resourcetranskers to SILlCsand selectedSIMICS, 1993 39 3.2 Liquidityburdens and debt overhangsof SIUCs and selectedSIMICs 40 3.3 Officialdebt forgivenessby DAC and Amabcountries, 1990-93 41 Figures I Privateand officialflows to developingcountries, 1989-94 3 2 Global.oreign direct investment, 1990-93 4 3 SELICdc'tbby ype of creditor,1993 5 1.1 Portfolioflows are surgingin middle-incomccountries 8 U.2 Net transfersnow average3 percentof dcevloping-countyGNP 9 1.3 Privatefows havetaken off... 10 1.4