Abstract

This section discusses the process of re-entry to the international capital markets for developing countries and the factors affecting it. After providing an historical perspective on developing country access to those markets, it describes recent developments in spontaneous portfolio and bank flows. It then highlights some of the obstacles faced by developing countries as they attempt to return to normal borrowing arrangements and discusses techniques to address concerns (particularly regarding transfer and liquidity risks) among foreign porfolio investors. The section concludes by summarizing the factors that may facilitate market re-entry.

International Capital Markets 1991
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