O V E R V I E W
Table 5. Net Official Loan Financing to Developing Countries, 2001–10 $ billions 2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Total official creditors
30.9
6.9
–12.0
–24.3
–64.3
–69.0
1.5
29.5
80.5
71.2
Bilateral
–3.6
–8.2
–13.8
–12.2
–31.7
–45.8
–10.6
–1.9
6.7
11.9
Multilateral
34.5
15.2
1.8
–12.1
–32.6
–23.2
12.1
31.4
73.7
59.4
2.4
–6.0
–7.7
–4.0
–3.0
–5.3
–0.4
2.7
11.8
17.1
of which IBRD IDA
5.0
5.5
5.0
6.4
5.6
5.0
5.5
4.6
6.5
5.3
IMF
19.5
14.2
2.4
–14.7
–40.2
–26.7
–5.1
10.8
26.8
13.8
..
0.3
0.4
1.1
1.2
1.2
1.9
2.1
2.5
2.2
Memorandum item: IDA grants
Sources: World Bank Debtor Reporting System and Organisation for Economic Co-operation and Development.
Figure 4. Gross Inflows from Bilateral and Multilateral Creditors to Developing Countries, 2005–10 $ billions
Figure 5. Net Private Debt Flows by Creditor Type, 2001–10 $ billions 300
45
250
40 35
200
30
150 25
100
20 15
50
International Monetary Fund International Bank for Reconstruction and Development International Development Association Other multilateral Bilateral
10
09
20
08
20
07
20
06
20
05
20
04
20
03
20
20
01
20
20
10 20
09 20
20
20
20
20
08
–50
07
0
06
0
05
5
02
10
Bonds Banks and other private Net short-term debt flows Source: World Bank Debtor Reporting System.
Source: World Bank Debtor Reporting System.
agency. Net inflow to public sector borrowers almost doubled in 2010, from $10 billion to $19.5 billion, while those to private sector borrowers, $24.6 billion, were 60 percent higher than in 2009, but still only around 20 percent of their peak 2007 level. The upturn in net inflow was fueled by a 20 percent rise in gross disbursements in 2010 to $350 billion, a marked turnaround from the 38 percent decline in comparable disbursements recorded in 2009. Consistent with the pattern of the past decade in volume terms
gross disbursements to private sector borrowers far outweighed those to public sector borrowers: $300 billion, equivalent to 85 percent of the 2010 total. Maturities on medium-term bank loans typically average 5 years and, consequently, the large volume of gross disbursements to private sector borrowers has been accompanied by a rapid escalation in principal repayments. They increased to $276 billion in 2010 triple their 2000 level (figure 6). A combination of favorable pricing conditions and investors’ continued search for yield led to a record level of activity in international bond
7