NEWS

EAST-WEST DEBT NEWS

East-West Debt permanently monitors political and financial situation in several high-risk countries.
Indeed, political and international events influence our solutions for solving certain overdue trade or bank debt. East-West Debt gives its best to register all recent developments in several high risk countries for our clients.

East-West Debt managed to gather a tremendous amount of information over the years, which gives us the possibility to exchange this knowledge with our customers.

The knowledge that we have built up is partly published in the form of newsletters which we send on a regular basis to a controlled network of financial professionals within multinationals, governments and banks all over the world.

Recently published East-West Debt newsletters include:

October 2003 Review

• ALGERIA Algeria: reconstruction efforts strain budget …
• ANGOLA Angola search for ‘missing millions’ …
• ARGENTINA Argentina gets thumbs up …
• INDONESIA Indonesia: an end to IMF dependence …
• IRAQ IRAQ ENTERING A NEW ERA But what with the old debts? …
• PAKISTAN Pakistan gets US aid, expects more …
• VENEZUELA Venezuela: servicing of debt a “priority” …
• ZAMBIA Zambia: emergency discussions …

March 2003 Review

• ALGERIA According to the IMF, Algeria has succeeded in restoring financial and monetary stability and has made progress in modernizing its economy.
• ARGENTINA Although the IMF has already lent Argentina $14 billion, the country can expect further aid of about $5 billion from the IMF, the World Bank and the Inter-American Development Bank (IADB) in support of a tough program.
• AZERBAIJAN Since its accession to the International Monetary Fund in 1992, Azerbaijan has received from this organization loans worth $458 million.
• ALBANIA Albania signed the Memorandum on Economic and Financial Politics with the IMF for 2003.
• BRAZIL Brazil’s economy has endured a fall out from the Argentine crisis and the global economic slowdown.
• CONGO Jordan has concluded an agreement with the Paris Club member countries to reschedule a sum of $2 billion.
• GEORGIA The Georgian Minister of Finance signed an agreement to reschedule part of Georgia’s state debts to Uzbekistan, Kazakhstan and Iran.
• INDONESIA The International Monetary Fund completed its seventh review of Indonesia’s performance under $4.8 billion Extended Fund Facility arrangement.
• IRAN The World Bank is planning to lend $70 million to the Tehran Municipality for environmental protection.
• IRAQ The world financial community will face a tougher challenge if it is called upon to rebuild Iraq than in the case of former outcasts Iraq than in the case of former outcasts like Yugoslavia or Afghanistan.
• NIGERIA The Nigerian economy faces enormous challenges. Nigeria’s budget deficit reached 4.9% of GDP in 2002 and its economy shrank by 0.9%.
• PAKISTAN Pakistan and the Asian Development Bank (ADB) signed an agreement to reduce poverty by half by the year 2011. The agreement supports Pakistan’s long-terms goals.
• RUSSIA Following the designation of Russia as a ‘market economy’ by the US Department of Commerce in June 2002, the country is improving its economic performance and regularly services its foreign debts.
• SAUDI-ARABIA In October 2002 the IMF gave the Saudi Government the guidelines for improvement of the country’s micro- and macroeconomy, including the fiscal policy, the imposition of taxes, the reduction of the public debt, the cut of subsidies and social aid to Saudis, privatization and other economic reforms.
• TURKEY Turkey’s consumer inflation rose by 29.7% in 2002. It was lower than the 35% target set in the country’s economic recovery program supported by the International Monetary Fund.
• UKRAINE The Programmatic Adjustment Loan (PAL) worth $750 million is the basic instrument of the World Bank’s Country Assistance Strategy (CAS) for Ukraine in 2001-2003

October 2002 Review

• ALGERIA Algeria is trying to convince foreign governments and investors that security in the country is improving in order to get foreign aid and investment streams flowing, hoping they can help an ailing economy.
• ARGENTINA Although the IMF has already lent Argentina $14 billion, the country can expect further aid of about $5 billion from the IMF, the World Bank and the Inter-American Development Bank (IADB) in support of a tough program.
• BRAZIL The World Bank approved three loans, totaling $1 billion, to support Brazil’s education, energy and financial sectors
• EGYPT The World Bank has announced its readiness to offer Egypt a loan of approximately $1 billion. This loan, constructed in participation with other parties and to be granted during a period of three years
• ekf INDONESIA The IMF highly appreciated the implementation of Indonesia’s economic reform program. Wise monetary policy, which is supported by other reforms, has stabilised the exchange rate and allowed for a significant reduction in inflation together with declines in interest rates.
• IRAN The International Monetary Fund reviewed its cooperation with Iran. The IMF praised Iran’s development plan
• IRAQ The United Nations Security Council passed a resolution which introduces improvements in its humanitarian oil-for-food program with Iraq which started in 1996. The $10 billion program allows Baghdad to sell its oil to buy food, medicine and other humanitarian goods for the civilian population.
• JORDAN Jordan has concluded an agreement with the Paris Club member countries to reschedule a sum of $2 billion.
• NIGERIA Nigeria is excluded from HIPC program although its per capita income levels and ratio of debt to gross national product are comparable with those of the 42 countries included in the HIPC initiative.
• PAKISTAN The World Bank approved four projects totaling $240 million to support Pakistan’s program of reforms, which is in line with the country’s Poverty Reduction Strategy and the World Bank’s new Country Assistance Strategy (CAS).
• TURKEY The International Monetary Fund completed the second review of Turkey’s economic performance under the three-year stand-by credit and decided to enable Turkey to draw $1.15 billion immediately.
• UKRAINE The economic situation in Ukraine has continued to improve in 2001. Real GDP growth is estimated to have increased from almost 6% in 2000 to 9% in 2001
• URUGUAY The IMF completed the first review, and approved a further $494 million on its current Stand-By Credit to Uruguay.
• VIETNAM Vietnam will get approximately $1.1 billion in aid from the IMF, the World Bank and the Asian Development Bank by the end of 2002.

March 2002 – REVIEW

• TurkeyTurkey : IMF considers $14bn loan
• ArgentinaArgentina’s road to disaster
• Emerging marketsEmerging markets vulnerable after attack on the World Trade Center
• IMF and World BankThe failure of the IMF and World Bank HIPC’s program
• MoldaviaMoldavia warns of debt default
• PakistanPakistan wins official debt rescheduling deal
• IraqUN embargo against Iraq
• ship arrestShip arrest in the Netherlands

March 2001 – REVIEW

• RussiaRussia – Russian debt
• IndonesiaIndonesia – Aid package for Indonesia
• Arbitration ClauseArbitration Clause
• LibyaLibya – Libya seeks foreign investment
• TurkeyTurkey – New IMF emergency loan for Turkey
• ArgentinaArgentina – IMF aid for Argentina
• AngolaAngola – Angola repays to Russia
• PeruPeru – Peru’s debt
• KazakhstanKazakhstan – Kazakhstan to launch insurance
• IraqIraq – Iraq debt
• IraqIraq – Iraq to World Court

September 2000 – REVIEW

• RussiaRussia – Russia’s debt
• UkraineUkraine – Ukraine restructuring
• SyriaSyria – Syria’s flagging economy
• TurkmenistanTurkmenistan – Turkmenistan loans
• ZimbabweZimbabwe – Zimbabwe’s economic crises
• AngolaAngola – Angolan economic reforms
• THAILANDThailand – Thai debt problem
• ArmeniaArmenia – Armenia’s economy
• PakistanPakistan – Pakistan reviews budgetary data

March 2000 – REVIEW

• Iraq Iraq – UN-embargo against Iraq continued
• Russia Russia – Russia restructures debt
• dollar vs soft currenciesGetting paid: the dollar vs. ‘soft currencies’
• Brazil Brazil – Brazil’s economic reforms
• Equador Equador – Ecuador restructuring Brady bonds
• Saudi Arabia Saudi Arabia – Budget deficit Saudi Arabia
• Yugoslavia Yugoslavia – Yugoslavian assets

October 1999 – REVIEW

• Ukraine Ukraine – Ukraine near to debt default
• IMFIMF – International sovereignty versus IMF
• Iraq Iraq – UN sanctions against Iraq
• China China – China’s debt plans
• Indonesia Indonesia – Indonesia debt situation
• Pakistan Pakistan – Pakistan avoiding default
• Libya Libya – Suspending of UN sanctions against Libya
• Venezuela Venezuela – Venezuela’s political and economical crises
• Kazakhstan Kazakhstan – Kazakhstan’s bureaucracy

April 1999 – REVIEW

• Iran Iraq – No solution political crisis in sight
• Iran Iraq – Financial situation
• Iran Iran – Delays of payment
• Debt-equity swaps Debt-equity swaps
• Russia Russia – Debt situation
• Saudi-Arabia Saudi-Arabia – Oil prices drive deficit up
• Angola Angola – UN peace keeper quits Angolan economy
• Indonesia Indonesia – Bank reform delayed
• ChinaChina – Foreign banks get tough

August 1998 – REVIEW

• IraqIraq Oil-for-food
• IraqIraq Oil Fields
• AngolaAngola Peace process
• AngolaAngola Privatisation
• AngolaRussian help
• AngolaAngola Economy
• CubaCuba Debt rescheduling
• CubaCuba Bank reform
• VietnamVietnam
• CongoCongo
• KenyaKenya Economy
• KenyaKenya Trade debt time-barred?

East-West Debt (Head Office) – Meir 24 – 2000 Antwerp – Belgium
Telephone +32 3 231 4503 – Fax +32 3 231 9545
E-mail: [email protected]