ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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POPULATION-Exploding Cities

developing countries has been accompanied by a rise in debt flows from $40.3 bn in 1993 which portfolio debt flows in the form of which portfolio debt flows in the form of bond issues were $38.3 bn, $32.2 bn and $33.7 bn, respectively. The Mexican crisis resulted in only bond issues by so-called better-quality borrowers being catered to and in widened spreads on bonds. With increasing uncertainty about interest rates in 1994-95, floating rate issues increased to 30 percent of all bond issues compared with an average of 15 per cent during 1990-93. Almost one-half of all issues by developing countries in 1994 had derivative components, again as a hedge against interest rate fluctuations. East Asia became a preferred region with borrowers from there increasing their share of bond issues from about 23 per cent in 1993 to more than 40 per cent in 1994 and 38 per cent in 1995. There was also a shift from private to sovereign borrowers and in currency-denomination from the US dollar to yen and deutschmark.

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