Appendix 6
Regional Trends in Debt and Flows

Global Overview

East Asia and the Pacific
Europe and Central Asia
Latin America and the Caribbean
Middle East and North Africa
South Asia
Sub-Saharan Africa

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Global overview Aggregate net resource flows to developing countries rose to an estimated $300 billion in 1997, up from $282 billion in 1996. Net flows from private sources were up $9 billion, and net official development finance increased by $10 billion. Official flows were driven by an increase in net nonconcessional lending by multilateral institutions, from $5 billion in 1996 to $10 billion in 1997. Concessional finance continued the decline seen over the 1990s, to an estimated $37 billion in 1997 from $40 billion in 1996. Net long-term private capital flows rose slightly for the year, from $247 billion in 1996 to $256 billion in 1997. Private debt flows increased strongly through the first three quarters of 1997, then plummeted with the worldwide decline in equity prices in late October. Portfolio equity flows fell from $46 billion in 1996 to $32 billion in 1997, as several countries experienced outflows during the last few months of the year. Foreign direct investment was roughly stable at $120 billion. Developing countries' debt stock increased only marginally in 1997, to $2.2 trillion from to $2.1 trillion in 1996. Export receipts rose 6 percent, and the average ratio of debt to exports fell from 137 percent in 1996 to 134 percent in 1997. Further progress was made on debt restructuring. Nine debt reduction agreements were concluded with commercial banks in 1997 reducing debt outstanding by $6.9 billion. Six low-income countries reached concessional debt restructuring agreements with Paris Club creditors under Naples terms, covering $5.8 billion in debt. Five countries were determined to be eligible for assistance under the Heavily Indebted Poor Countries (HIPC) Debt Initiative, assuming continued strong adjustment performance.

Key indicators
Billions of U.S. dollars

a. Preliminary.

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