## FINANCIAL MARKET UPDATE June 2005 — Section 1 and Section 2

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### Market overview and key developments
- Data as of June 15, 2005.
- Despite a growing U.S. current account deficit, the dollar appreciated in 2005 as market participants focused on relative growth and interest rate differentials in favor of the United States.
- Short-term policy tightening in the United States and the United Kingdom coincided with declines in long-term yields across mature markets, reflecting expectations of more moderate growth and contained inflation and a shift in institutional demand toward fixed-income instruments.
- An ongoing search for yield pushed spreads on corporate and emerging market bonds to very low levels and encouraged market participants to move toward riskier and more complex investments, including “relative value” trades using credit derivatives.

### Long-term bond yields and drivers
- Long-term interest rates were unusually low for this stage in the cycle and fell since March 2005, remaining low relative to global aggregate demand.
- In the United States, nominal GDP growth has substantially exceeded long-term yields since mid-2004.
- The Federal Reserve raised its target Federal funds rate in eight steps by 200 basis points since mid-2004, while the 10-year nominal yield fell by about 70 basis points, to around 4 percent, producing a marked flattening of the yield curve.
- In the United Kingdom, policy rates were raised by 125 basis points in five increments from late-2003 through mid-2004, while 10-year gilt yields fell by some 70 basis points, to 4.4 percent.
- Inflation expectations, measured by the difference between nominal and indexed bond yields, have been stable or trending downward in the past year; real yields have also trended down.
- Markets expect bond yields to remain low into the future, as indicated by a downward trend in the 10-year U.S. treasury rate expected in 10 years’ time.

### Structural demand factors affecting long-term yields
- Large purchases of U.S. treasury, agency, and mortgage-backed securities by international private sector investors and foreign central banks supported low long-term yields.
- Pension funds and life insurers have shifted toward longer-duration fixed-income assets to better match liabilities, partly in response to regulatory reforms and new accounting standards.
- Aging populations in many OECD countries will increase total assets of pension funds and life insurance companies, already at $25 trillion.
- U.K. pension funds reduced equity allocation from 71 percent of assets in 2000 to 56 percent in 2003; U.K. life insurers reduced equity allocation from over 50 percent of assets in the 1990s to 36 percent in June 2004.
- Several European governments increased the supply of longer-term securities, including ultra-long bonds of more than 30-year maturities.

### Risks associated with low yields and flat yield curves
- Flat yield curves reduce the earnings environment for financial intermediaries that earn the spread between long- and short-term rates, despite strong balance sheets built during prior steep-curve, noninflationary growth periods.
- Low and flat yields incentivize carry trades into riskier asset classes and increased use of leveraged positions, particularly in credit derivatives.
- Leveraged bets in complex derivatives markets could be unwound disorderly; disorderly unwinds could cause credit market volatility, though strong bank balance sheets and risk management practices could confine dislocations to individual investors, including hedge funds.
- Occasional confined market corrections could help reduce investor complacency and contribute to global financial stability.

### Corporate credit, auto-sector stress, and the credit cycle
- Rating agencies downgraded North American auto companies to below investment grade due to poor profitability and market share losses, creating a large flow of auto bonds into the high-yield market and amplifying price declines in that sector.
- Non-auto investment grade spreads did not react much to auto sector turbulence, and broader corporate balance sheets remained relatively sound. High-yield company spreads and downgraded auto company spreads later narrowed.
- Disruptions in the credit derivatives market occurred; highly leveraged equity tranches of collateralized debt obligations (CDOs) suffered deep losses as assumed correlations among obligors were violated when stress was largely confined to the auto sector.
- Some hedge funds with leveraged derivative positions may have suffered significant losses amid scramble to hedge or exit positions.
- Default rates are at cyclical lows, but the credit cycle may be peaking as growth moderates. Rating agencies expected modest pickups in default rates in 2006: Moody’s forecasted the default rate to pick up to 2.8 percent by year end from 2.2 percent in March 2005; S&P forecasted a similar increase.

### U.S. mortgage markets and household credit risk
- The boom in U.S. home mortgage borrowing, including net equity extraction, continued, supporting household spending. Home mortgage borrowing rose from 2–4 percent of GDP through around 2000 to almost 8 percent of GDP in early 2005.
- New and marginal home buyers increasingly used riskier mortgage instruments: mortgages that dispense with principal payments, feature negative amortization, or are serviced at floating rates.
- Many floating-rate mortgages are hybrids with an initial fixed period typically of three to seven years. Analysts cautioned that many of these mortgages originated in recent years will soon start to adjust, with as much as $1 trillion, or 12 percent of total U.S. mortgage debt, due to adjust in 2007.
- Floating-rate and interest-only mortgages initially reduce monthly payments for marginal buyers but expose them and mortgage holders to interest rate and market risks. Some banks showed signs of relaxed credit standards; U.S. regulators cautioned lending banks to tighten standards.

### Equity markets and earnings outlook
- Earnings yields remained high relative to long-term government bond yields, reflecting institutional preference shifts toward fixed-income instruments.
- Major market price/earnings ratios converged and stabilized at lower levels in recent years.
- Implied volatility of options has continued to fall since early 2003 despite occasional brief spikes.
- Major equity markets likely have less support from positive earnings surprises than in 2004. Ex-ante forecasted versus ex-post estimated earnings indicated stronger-than-expected earnings in 2004; the size of earnings surprises in the United States and Japan had been ebbing so far in 2005.
- Earnings growth for the second quarter of 2005 was estimated at 6.8 percent for the U.S. S&P 500 companies, compared with double-digit earnings growth in the previous seven quarters.

### Emerging market debt: resilience and investor base changes
- Emerging market debt spreads proved resilient to financial market volatility and remained tight relative to historical levels.
- A modest sell-off in March 2005 reduced a large proportion of leveraged positions in the emerging market sector, lowering the risk of a more disorderly future correction.
- Emerging market spreads decoupled from U.S. corporate high-yield spreads during the auto-sector sell-off, remaining relatively steady while U.S. high-yield spreads widened, reducing the differential between the two.
- Stronger fundamentals—including substantial reserves accumulation in key countries—and a growing long-term investor base supported stable demand for emerging market assets.
- Changes in the investor base included increasing demand from “buy and hold” institutional investors, dedicated emerging market mutual funds that continued to receive net inflows, and “crossover” investors that traditionally allocated only a small portion of portfolios to emerging-market assets. Some allocations rotated out of U.S. high-yield bond funds, which suffered large outflows stemming from auto sector problems.

### Investor positioning and mutual fund flows (Section 2)
- Strategic allocations from institutional investors in 2005 have reached about $5.5 billion by end-May, compared with an estimated $3.4 billion through the same period in 2004.
- U.S. crossover funds held 0.77 percent of assets under management in emerging market bonds at the end of April, up from 0.69 percent at end-February and the highest level since reporting began in 2001.
- Investor positioning has reduced the risk of an emerging market sell-off: since the modest sell-off in March, investors have consistently maintained underweight positions in emerging market bonds.
- A mutual fund “beta” measure shows investors have reduced risk exposures since the beginning of the year. The mutual fund beta is measured as the average slope coefficient in regressions of individual portfolio returns on EMBIG returns, controlling for different investment styles by expressing individual fund betas in standard deviations from each fund’s long-term average.

### Local markets, debt management, and restructurings
- Local-currency emerging market bonds largely escaped the March turmoil even though emerging market equities and currencies experienced a brief sell-off.
- Emerging market countries have used active debt management to improve credit profiles by issuing in different currencies, increasing the proportion of financing from domestic sources, conducting debt restructuring operations (noted examples: Argentina and the Dominican Republic), and through agreements such as Russia and Peru reaching arrangements with the Paris Club to prepay part of their bilateral official debt.

### New emerging market issuance in 2005
- Emerging market issuance advanced at a steady pace in 2005, except April when issuers stayed out after a brief period of volatility.
- Cumulative gross issuance in 2005 is comparable to the strong pace posted in 2004; equity issuance is short of last year’s record pace.
- Sovereign external financing needs are about four-fifths completed so far in 2005, and some countries have started prefinancing 2006 needs.
- Gross sovereign emerging market external financing requirements:
  - 2005: about $57 billion
  - 2006: expected to be less than $50 billion
- Issuance patterns:
  - dollar-denominated bond issuance rebounded following late-2004 euro-denominated issuance,
  - notable surge in issuance in other, less traditional currencies.
- Issuers may choose to prefinance in advance of the 2006 heavy elections calendar, particularly in Latin America.

### U.S. dollar performance and global financing flows
- The U.S. dollar rebounded throughout the first half of 2005, broadly reversing fourth-quarter weakness; the rally centered on major international currencies, particularly against the euro (which weakened by 11 percent).
- The dollar is little changed against a trade-weighted basket of key emerging market currencies.
- Renminbi nondeliverable forward (NDF) market priced just over a 5 percent appreciation against the dollar over a 12-month horizon.
- Regional currency movements year-to-date cited:
  - Korean won: +2.5 percent year-to-date
  - Taiwanese dollar: +1.3 percent year-to-date
- Strengthening of the dollar occurred despite a burgeoning U.S. current account deficit, as widening interest rate and growth differentials favored the dollar and speculation increased that the ECB might ease monetary policy.
- Estimates of private sector foreign investment in U.S. securities, mostly bonds, have roughly matched current account deficits of around $60 billion a month.
- Central bank purchases of U.S. fixed-income securities have been subdued in recent months.
- The American Jobs Creation Act (passed in 2004, fully clarified in January 2005) allows U.S. companies to repatriate profits previously held abroad at a 5.25 percent tax rate rather than 35 percent; repatriations must be accompanied by plans requiring executive approvals. The tax advantages may lead to substantial flows, to be reported as negative direct investment abroad, and may have become significant starting in the second quarter of 2005.

### Key statistics and market indicators (selected values preserved exactly)
- Institutional strategic allocations in 2005 by end-May: $5.5 billion.
- Strategic allocations through same period in 2004: $3.4 billion.
- U.S. crossover funds emerging market bond holding:
  - end-April: 0.77 percent
  - end-February: 0.69 percent
- Gross sovereign emerging market external financing requirements:
  - 2005: about $57 billion
  - 2006: less than $50 billion
- Renminbi NDF 12-month appreciation priced: just over a 5 percent.
- Korean won year-to-date: +2.5 percent.
- Taiwanese dollar year-to-date: +1.3 percent.
- Private sector foreign investment in U.S. securities roughly matched current account deficits of around $60 billion a month.
- American Jobs Creation Act repatriation tax rate: 5.25 percent (versus 35 percent otherwise).

### Table highlights (selected entries preserved exactly as in source)
- Table 1 (selected series values preserved exactly as in source):
  - EMBI Global (spread in bps) examples: 735, 728, 725, 403, 347, 414, 482, 409, 347, 356, 384, 364, 309, 309.
  - Merrill Lynch High Yield (spread in bps) examples: 890, 795, 871, 418, 310, 438, 404, 384, 310, 338, 419, 413, 378, 378.
  - US 10 yr. Treasury Yield (yield in %): 5.12, 5.05, 3.82, 4.25, 4.22, 3.84, 4.58, 4.12, 4.22, 4.48, 4.20, 3.98, 4.07, 4.07.
  - MSCI Emerging Market Free: -31.8, -4.9, -8.0, 51.2, 22.4, 8.9, -10.3, 7.4, -0.2, 1.2, -3.0, 3.0, 2.6, 3.8.
- Table 2 (Sovereign External New Issuance Estimates in 2005, in millions of U.S. dollars, selected entries preserved exactly):
  - Brazil: Planned 6,000; Actual 5,598; Remaining 402; Completed (percent) 93.3
  - Chile: Planned 600; Actual - ; Remaining 600; Completed (percent) 0.0
  - Colombia: Planned 1,500; Actual 1,660; Remaining (160); Completed (percent) 110.6
  - Hungary: Planned 4,800; Actual 3,856; Remaining 944; Completed (percent) 80.3
  - Mexico: Planned 2,000; Actual 4,896 / 1(2,896); Remaining 244.8
  - Peru: Planned 1,200; Actual 1,193; Remaining 7; Completed (percent) 99.4
  - Poland: Planned 9,200; Actual 9,020; Remaining 181; Completed (percent) 98.0
  - Turkey: Planned 6,000; Actual 4,788; Remaining 1,212; Completed (percent) 79.8
  - Total by region and overall:
    - Asia: Planned 8,500; Actual 4,549; Remaining 3,951; Completed (percent) 53.5
    - Emerging Europe: Planned 23,600; Actual 20,264; Remaining 3,336; Completed (percent) 85.9
    - Latin America: Planned 15,650; Actual 19,337; Remaining (3,687); Completed (percent) 123.6
    - Middle East & Africa: Planned 8,400; Actual 500; Remaining 7,900; Completed (percent) 6.0
    - Total: Planned 56,150; Actual 44,650; Remaining 11,500; Completed (percent) 79.5
  - Footnotes preserved: 1 Includes $1,975 million of 2006 prefinancing. 2 Includes $1,215 million of 2006 prefinancing.

*Source: Financial Market Update, International Capital Markets Department, Global Markets Analysis Division; Data as of June 15, 2005. Section 2 source: IMF staff estimates and data from J.P. Morgan & Chase Co., Dealogic, Bloomberg L.P., AMG Data Services, and other market data providers.*

### Section 1

### FINANCIAL MARKET UPDATE June 2005 — Section 1

### Market overview and key developments
- Data as of June 15, 2005.  
- Despite a growing U.S. current account deficit, the dollar appreciated in 2005 as market participants focused on relative growth and interest rate differentials in favor of the United States.  
- Short-term policy tightening in the United States and the United Kingdom coincided with declines in long-term yields across mature markets, reflecting expectations of more moderate growth and contained inflation and a shift in institutional demand toward fixed-income instruments.  
- An ongoing search for yield pushed spreads on corporate and emerging market bonds to very low levels and encouraged market participants to move toward riskier and more complex investments, including “relative value” trades using credit derivatives.

### Long-term bond yields and drivers
- Long-term interest rates were unusually low for this stage in the cycle and fell since March 2005, remaining low relative to global aggregate demand.  
- In the United States, nominal GDP growth has substantially exceeded long-term yields since mid-2004.  
- The Federal Reserve raised its target Federal funds rate in eight steps by 200 basis points since mid-2004, while the 10-year nominal yield fell by about 70 basis points, to around 4 percent, producing a marked flattening of the yield curve.  
- In the United Kingdom, policy rates were raised by 125 basis points in five increments from late-2003 through mid-2004, while 10-year gilt yields fell by some 70 basis points, to 4.4 percent.  
- Inflation expectations, measured by the difference between nominal and indexed bond yields, have been stable or trending downward in the past year; real yields have also trended down.  
- Markets expect bond yields to remain low into the future, as indicated by a downward trend in the 10-year U.S. treasury rate expected in 10 years’ time.

### Structural demand factors affecting long-term yields
- Large purchases of U.S. treasury, agency, and mortgage-backed securities by international private sector investors and foreign central banks supported low long-term yields.  
- Pension funds and life insurers have shifted toward longer-duration fixed-income assets to better match liabilities, partly in response to regulatory reforms and new accounting standards.  
- Aging populations in many OECD countries will increase total assets of pension funds and life insurance companies, already at $25 trillion.  
- U.K. pension funds reduced equity allocation from 71 percent of assets in 2000 to 56 percent in 2003; U.K. life insurers reduced equity allocation from over 50 percent of assets in the 1990s to 36 percent in June 2004.  
- Several European governments increased the supply of longer-term securities, including ultra-long bonds of more than 30-year maturities.

### Risks associated with low yields and flat yield curves
- Flat yield curves reduce the earnings environment for financial intermediaries that earn the spread between long- and short-term rates, despite strong balance sheets built during prior steep-curve, noninflationary growth periods.  
- Low and flat yields incentivize carry trades into riskier asset classes and increased use of leveraged positions, particularly in credit derivatives.  
- Leveraged bets in complex derivatives markets could be unwound disorderly; disorderly unwinds could cause credit market volatility, though strong bank balance sheets and risk management practices could confine dislocations to individual investors, including hedge funds.  
- Occasional confined market corrections could help reduce investor complacency and contribute to global financial stability.

### Corporate credit, auto-sector stress, and the credit cycle
- Rating agencies downgraded North American auto companies to below investment grade due to poor profitability and market share losses, creating a large flow of auto bonds into the high-yield market and amplifying price declines in that sector.  
- Non-auto investment grade spreads did not react much to auto sector turbulence, and broader corporate balance sheets remained relatively sound. High-yield company spreads and downgraded auto company spreads later narrowed.  
- Disruptions in the credit derivatives market occurred; highly leveraged equity tranches of collateralized debt obligations (CDOs) suffered deep losses as assumed correlations among obligors were violated when stress was largely confined to the auto sector.  
- Some hedge funds with leveraged derivative positions may have suffered significant losses amid scramble to hedge or exit positions.  
- Default rates are at cyclical lows, but the credit cycle may be peaking as growth moderates. Rating agencies expected modest pickups in default rates in 2006: Moody’s forecasted the default rate to pick up to 2.8 percent by year end from 2.2 percent in March 2005; S&P forecasted a similar increase.

### U.S. mortgage markets and household credit risk
- The boom in U.S. home mortgage borrowing, including net equity extraction, continued, supporting household spending. Home mortgage borrowing rose from 2–4 percent of GDP through around 2000 to almost 8 percent of GDP in early 2005.  
- New and marginal home buyers increasingly used riskier mortgage instruments: mortgages that dispense with principal payments, feature negative amortization, or are serviced at floating rates.  
- Many floating-rate mortgages are hybrids with an initial fixed period typically of three to seven years. Analysts cautioned that many of these mortgages originated in recent years will soon start to adjust, with as much as $1 trillion, or 12 percent of total U.S. mortgage debt, due to adjust in 2007.  
- Floating-rate and interest-only mortgages initially reduce monthly payments for marginal buyers but expose them and mortgage holders to interest rate and market risks. Some banks showed signs of relaxed credit standards; U.S. regulators cautioned lending banks to tighten standards.

### Equity markets and earnings outlook
- Earnings yields remained high relative to long-term government bond yields, reflecting institutional preference shifts toward fixed-income instruments.  
- Major market price/earnings ratios converged and stabilized at lower levels in recent years.  
- Implied volatility of options has continued to fall since early 2003 despite occasional brief spikes.  
- Major equity markets likely have less support from positive earnings surprises than in 2004. Ex-ante forecasted versus ex-post estimated earnings indicated stronger-than-expected earnings in 2004; the size of earnings surprises in the United States and Japan had been ebbing so far in 2005.  
- Earnings growth for the second quarter of 2005 was estimated at 6.8 percent for the U.S. S&P 500 companies, compared with double-digit earnings growth in the previous seven quarters.

### Emerging market debt: resilience and investor base changes
- Emerging market debt spreads proved resilient to financial market volatility and remained tight relative to historical levels.  
- A modest sell-off in March 2005 reduced a large proportion of leveraged positions in the emerging market sector, lowering the risk of a more disorderly future correction.  
- Emerging market spreads decoupled from U.S. corporate high-yield spreads during the auto-sector sell-off, remaining relatively steady while U.S. high-yield spreads widened, reducing the differential between the two.  
- Stronger fundamentals—including substantial reserves accumulation in key countries—and a growing long-term investor base supported stable demand for emerging market assets.  
- Changes in the investor base included increasing demand from “buy and hold” institutional investors, dedicated emerging market mutual funds that continued to receive net inflows, and “crossover” investors that traditionally allocated only a small portion of portfolios to emerging-market assets. Some allocations rotated out of U.S. high-yield bond funds, which suffered large outflows stemming from auto sector problems.

*Source: Financial Market Update, International Capital Markets Department, Global Markets Analysis Division; Data as of June 15, 2005.*

### Section 2

### 0605 - Section 2

### Investor positioning and mutual fund flows
- Strategic allocations from institutional investors in 2005 have reached about $5.5 billion by end-May, compared with an estimated $3.4 billion through the same period in 2004.
- U.S. crossover funds held 0.77 percent of assets under management in emerging market bonds at the end of April, up from 0.69 percent at end-February and the highest level since reporting began in 2001.
- Investor positioning has reduced the risk of an emerging market sell-off: since the modest sell-off in March, investors have consistently maintained underweight positions in emerging market bonds.
- A mutual fund “beta” measure shows investors have reduced risk exposures since the beginning of the year. The mutual fund beta is measured as the average slope coefficient in regressions of individual portfolio returns on EMBIG returns, controlling for different investment styles by expressing individual fund betas in standard deviations from each fund’s long-term average.
- Cumulative net flows to U.S.-based mutual funds (emerging market debt and high yield) show sizable gross and net movement over Jan-04 to Apr-05 (figures and charting in original).

### Local markets, debt management, and restructurings
- Local-currency emerging market bonds largely escaped the March turmoil even though emerging market equities and currencies experienced a brief sell-off.
- Emerging market countries have used active debt management to improve credit profiles by:
  - issuing in different currencies,
  - increasing the proportion of financing from domestic sources,
  - conducting debt restructuring operations (noted examples: Argentina and the Dominican Republic),
  - Russia and Peru reached agreements with the Paris Club to prepay part of their bilateral official debt.

### New emerging market issuance in 2005
- Emerging market issuance advanced at a steady pace in 2005, except April when issuers stayed out after a brief period of volatility.
- Cumulative gross issuance in 2005 is comparable to the strong pace posted in 2004; equity issuance is short of last year’s record pace.
- Sovereign external financing needs are about four-fifths completed so far in 2005, and some countries have started prefinancing 2006 needs.
- Gross sovereign emerging market external financing requirements:
  - 2005: about $57 billion
  - 2006: expected to be less than $50 billion
- Issuance patterns:
  - dollar-denominated bond issuance rebounded following late-2004 euro-denominated issuance,
  - notable surge in issuance in other, less traditional currencies.
- Issuers may choose to prefinance in advance of the 2006 heavy elections calendar, particularly in Latin America.

### U.S. dollar performance and global financing flows
- The U.S. dollar rebounded throughout the first half of 2005, broadly reversing fourth-quarter weakness; the rally centered on major international currencies, particularly against the euro (which weakened by 11 percent).
- The dollar is little changed against a trade-weighted basket of key emerging market currencies.
- Renminbi nondeliverable forward (NDF) market priced just over a 5 percent appreciation against the dollar over a 12-month horizon.
- Regional currency movements year-to-date cited:
  - Korean won: +2.5 percent year-to-date
  - Taiwanese dollar: +1.3 percent
- Strengthening of the dollar occurred despite a burgeoning U.S. current account deficit, as widening interest rate and growth differentials favored the dollar and speculation increased that the ECB might ease monetary policy.
- Estimates of private sector foreign investment in U.S. securities, mostly bonds, have roughly matched current account deficits of around $60 billion a month.
- Central bank purchases of U.S. fixed-income securities have been subdued in recent months.
- The American Jobs Creation Act (passed in 2004, fully clarified in January 2005) allows U.S. companies to repatriate profits previously held abroad at a 5.25 percent tax rate rather than 35 percent; repatriations must be accompanied by plans requiring executive approvals. The tax advantages may lead to substantial flows, to be reported as negative direct investment abroad, and may have become significant starting in the second quarter of 2005.

### Key statistics and market indicators (selected values preserved exactly)
- Institutional strategic allocations in 2005 by end-May: $5.5 billion.
- Strategic allocations through same period in 2004: $3.4 billion.
- U.S. crossover funds emerging market bond holding:
  - end-April: 0.77 percent
  - end-February: 0.69 percent
- Gross sovereign emerging market external financing requirements:
  - 2005: about $57 billion
  - 2006: less than $50 billion
- Renminbi NDF 12-month appreciation priced: just over a 5 percent.
- Korean won year-to-date: +2.5 percent.
- Taiwanese dollar year-to-date: +1.3 percent.
- Private sector foreign investment in U.S. securities roughly matched current account deficits of around $60 billion a month.
- American Jobs Creation Act repatriation tax rate: 5.25 percent (versus 35 percent otherwise).

### Table highlights (selected entries preserved exactly as in source)
- Table 1 (Emerging Market Financing, gross issuance by asset, year-to-date and quarterly figures; secondary market spreads):
  - EMBI Global (spread in bps) examples: 735, 728, 725, 403, 347, 414, 482, 409, 347, 356, 384, 364, 309, 309 (series values shown in table).
  - Merrill Lynch High Yield (spread in bps) examples: 890, 795, 871, 418, 310, 438, 404, 384, 310, 338, 419, 413, 378, 378 (series values shown in table).
  - US 10 yr. Treasury Yield (yield in %): 5.12, 5.05, 3.82, 4.25, 4.22, 3.84, 4.58, 4.12, 4.22, 4.48, 4.20, 3.98, 4.07, 4.07 (series values shown in table).
  - MSCI Emerging Market Free: -31.8, -4.9, -8.0, 51.2, 22.4, 8.9, -10.3, 7.4, -0.2, 1.2, -3.0, 3.0, 2.6, 3.8 (series values shown in table).
- Table 2 (Sovereign External New Issuance Estimates in 2005, in millions of U.S. dollars):
  - Brazil: Planned 6,000; Actual 5,598; Remaining 402; Completed (percent) 93.3
  - Chile: Planned 600; Actual - ; Remaining 600; Completed (percent) 0.0
  - Colombia: Planned 1,500; Actual 1,660; Remaining (160); Completed (percent) 110.6
  - Hungary: Planned 4,800; Actual 3,856; Remaining 944; Completed (percent) 80.3
  - Mexico: Planned 2,000; Actual 4,896 / 1(2,896); Remaining 244.8 (entry preserved exactly as in table)
  - Peru: Planned 1,200; Actual 1,193; Remaining 7; Completed (percent) 99.4
  - Poland: Planned 9,200; Actual 9,020; Remaining 181; Completed (percent) 98.0
  - Turkey: Planned 6,000; Actual 4,788; Remaining 1,212; Completed (percent) 79.8
  - Total (by region and overall):
    - Asia: Planned 8,500; Actual 4,549; Remaining 3,951; Completed (percent) 53.5
    - Emerging Europe: Planned 23,600; Actual 20,264; Remaining 3,336; Completed (percent) 85.9
    - Latin America: Planned 15,650; Actual 19,337; Remaining (3,687); Completed (percent) 123.6
    - Middle East & Africa: Planned 8,400; Actual 500; Remaining 7,900; Completed (percent) 6.0
    - Total: Planned 56,150; Actual 44,650; Remaining 11,500; Completed (percent) 79.5
  - Footnotes preserved: 1 Includes $1,975 million of 2006 prefinancing. 2 Includes $1,215 million of 2006 prefinancing.

---


_Source: https://www.imf.org/-/media/files/publications/fmu/0605.pdf_