Net medium-term bank financing

Debt indicators are lower than those of Europe and Central Asia and Latin America and the Caribbean. Debt outstanding at the end of 2009 as a percentage of exports was 104.4 percent and the debt service to export ratio was 6.8 percent. But there are important differences between countries: the debt-to-export ratio ranged from 86.6 percent in India to 235.2 percent in Pakistan. Similarly, reserves as a percentage of the stock of external debt were 119.8 percent in India at the end of 2009 compared to 25.3 percent in Pakistan. Reliance on multilateral creditors is high: the share of outstanding debt owed to multilateral creditors (including the IMF) was 30 percent at the end of 2009. Sub-Saharan Africa Net capital flows to Sub-Saharan Africa rose 16 percent in 2009, driven by a resurgence in portfolio equity inflows, a more than 100 percent increase in the net debt inflows from official creditors, and a 130 percent rise in net medium-term bank financing. Measured in terms of GNI, net capital flows were 5.2 percent in 2009, higher than in any other region (table 13). FDI in the region, directed mainly to the minerals and metals sector, constituted two-thirds of net capital flows (excluding grants) between 2001 and 2009. It declined in 2009, driven by falling investment flows to South Africa, the region’s largest recipient of FDI since 2001.

. FDI to Nigeria, which received the highest share of all FDI to the region in 2009, rose by almost 20 percent (mostly given to the hydrocarbon sector), and FDI to countries in the region classified as HIPCs fell only marginally. Portfolio equity flows to South Africa rebounded to $9.4 billion, buoyed by improved economic prospects and the sale of Vodacom. They also turned positive in Nigeria ($0.5 billion). Many countries in the region remain on the margins of international capital markets and depend on official aid, mostly grants. Such aid is projected to rise again in 2009, notwithstanding the recessions in developed countries, but to remain below the target set by donors’ “Renewed Commitment to Africa,” which called for aid to increase by $25 billion by 2010 from its 2004 level. Debt-related financing from official creditors doubled in 2009 to $10 billion, led by a sharp rise in gross disbursements from multilateral creditors (including the IMF). IDA is the single most important multilateral creditor to the region, disbursing $5 billion in 2009 (in loans and grants), a 13 percent rise over the comparable figure for 2008. Twenty-four countries received financing under IMF programs, and IMF purchases rose 85 percent in 2009. Among the largest recipients were Angola, the Democratic Republic of Congo, COte d’Ivoire, and Tanzania. There was also a sharp upturn in market-based financing by the African Development Bank. It committed $5 billion in 2009, including $1.5 billion to Botswana (of which $1.1 billion was disbursed immediately)

New issuance by private sector

IDB, the largest multilateral creditor, accounted for 50 percent of 2009 multilateral commitments and 48 percent of gross disbursements. The steep drop in medium-term lending by banks was offset by a sharp rise in net inflows for bonds, which leapt from $7.5 billion in 2008 to $40.3 billion in 2009. New bonds issued by the public sector totaled $32 billion, almost identical to 2008, of which Brazil ($6.1 billion), Colombia ($5.5 billion), and Mexico ($10.9 billion) accounted for 69 percent. New issuances by private sector borrowers shot up to $28 billion (from $8 billion in 2008), led by the corporate sector in Brazil ($17 billion) and, to a lesser extent, Mexico ($5.1 billion). The rise in the stock of outstanding debt in 2009 was moderate-3 percent for the entire region—and it was the decline in export earnings that caused the ratio of outstanding debt to exports to deteriorate. It jumped to 111.4 percent (from 85.2 percent in 2008). Debt in relation to GNI rose slightly in 2009 but remains moderate at 23.7 percent.

Capital inflows increased by 32 percent largely because of the increase in lending by official creditors and an inflow of short-term debt. The reversal in net debt flows to $2 billion in 2009, from an outflow of $9 billion in 2008, more than offset the 14 percent fail in net equity flows (table 11). Net equity inflows have constituted 96 percent of all net capital flows into the region since 2001. The 17 percent decline in sukanya samriddhi scheme calculator and sukanya samriddhi account form net FDI inflows in 2009 was partially offset by an increase in net portfolio equity flows. They rose to $1.2 billion in 2009 from $0.4 billion in 2008. Portfolio equity flows are concentrated in the Arab Republic of Egypt and Lebanon, and both countries recorded a marked increase in inflows in 2009. With regard to FDI, however, the picture was mixed. Egypt, the region’s largest recipient of FDI, saw net FDI inflows fall 29 percent in 2009. But in Lebanon, FDI inflows were $4.8 billion, up by 10 percent, and in the Islamic Republic of Iran, they jumped by an unprecedented 87 percent to $3 billion, directed primarily at the oil and gas sector.

Countries in the region are relatively poor and rely in large measure on official sources of financing, including official aid. Afghanistan, the second-highest aid recipient of all developing countries, received 4 percent of global aid flows in 2008, and this trend is likely to be repeated in 2009. Bangladesh, India, and Pakistan are also among the top 10 aid recipients. Debt-related flows from official creditors rose by 10 percent in 2009. Pakistan was the largest recipient and received almost 50 percent of disbursements to the region in 2009 from multilateral creditors, including $3.3 billion in purchases from IMF. These purchases were made under the $7.6 billion IMF program, approved in November 2008 and increased by a further $32 billion in July 2009. Disbursements in 2009 from the World Bank (IBRD and IDA combined) were $4 billion, almost identical to those of the Asian Development Bank to the region in 2009. The overall fall in debt-related flows from private creditors was driven in large part by the contraction in short-term (trade-related) debt to India. Additionally, disbursements of medium-term financing by banks fell by about 10 percent from their 2008 level, which, coupled with the continued rise in principal repayments, led to a 17 percent decline in net inflow in 2009 compared to 2008. Bond issuance by public sector borrowers, notably India, also dropped off sharply in 2009, but Sri Lanka issued $500 million in development bonds; aimed at the Sri Lankan Diaspora, these bonds were oversubscribed.

New Technology GPRS

A more recent alternative to HSCSD is a packet-switched upgrade to GSM networks called GPRS (General Packet Radio Service) GPRS is an ‘always-on’ service, which means that the customer does not have to dial-up their service provider each time the mobile phone is transmitting or receiving data This is comparable in some ways to having high-speed Internet access at home, where the connection is active as long as the computer is operating. According to the technical specifications, GPRS is capable of up to 115kbps but this will depend on the local mobile operator and how they have decided to implement the service. In many cases, speeds will average around .56kbps, which is equivalent to a high-speed dial-up modem but well below the speeds for wireless Ethernet, cable or ADSL service.

However, because GPRS is a packet-switched service, the billing system is likely to be based on the amount of data traffic transmitted and received rather than for connection time. GPRS is a relatively simple upgrade to existing GSM networks and is the first step in the upgrade path toward 3G. At the customer end, many new handsets are now equipped with GPRS and new data cards for laptops and PDAs are available on the market.

The DM -based version of GPM is known as 1XRTT (1 eXtreme Radio Transmission Technology). Mobile operators that have deployed CDMA net-works provide mobile data services using the packet-switched 1XRTT service. Although there is some debate, 1XR.TT is purported to have a slightly better performance rating than GPRS although in practice it also is reported to remain below the theoretical limit, with IXRTT networks providing average speeds at 64kbps, IXRTT is also on the upgrade path to 3G, while some mobile no tracker operators even claim it qualifies as a 3G service, though this is disputable because it does not meet all the qualifications of a 3G standard. Slow speed data services Despite the intense marketing campaign that has accompanied the newer packet switched services, it is important to also realize that a number of older mobile data

Air-link standards for data

The most basic way to have mobile data access is by using a mobile phone as a modem, just like one would use a telephone at home for making a dial-up connection to the Internet_ In this arrangement the customer connects their computer to a mobile phone using a data cable., infrared port or Bluetooth con-nection_ The mobile phone then provides the air-link bebeveen the computer and the Internet using a standard dial-up connection. This type of configuration will work for both  circuit-switched and packet-switched services_ In the circuit-s\pritched configuration, the customer dials-up an. Internet Service Provider (IP) much like standard dial-up modem service. Of course the drawback to this method is that the user is usually billed for every minute of connection time whether or not they are actually exchanging data.

The download speed available with this kind of configuration tends to vary between 9.6 and 14.4kbps (kilobytes per second), which by today’s standards is the same as a very slow modem. When billing by time this slow speed means long calls that could cost a great deal of money to the customer. In some cases compression software can be installed on the computer to improve the speed.

HSCSD An improved version of the circuit-switched modem method is avail-A-51e on some GSM networks. Known as High Speed Circuit Switched Data (HSCSD), this service is based on a minor upgrade to GSM networks that can chain together four 14..4kbps circuits at the same time increasing the potential speed to something like a 56K modern. Essentially HSCSD works by concatenating two or more tele-phone calls to increase the capacity for data transmission_ HSCSD was developed in 1997 but released commercially in 200( The GSM Association reported that by 2002 it was available in 27 countries worldwide.

▪ Phonebook with up to 1000 contacts with multiple entries per contact ▪ Calendar with notes and reminders ▪ Alarm dock ▪ To do Fist HSCSD and GPRS for high-speed data connectivity capable ▪ XI-ITML browser MAR 2.0) I , 2, 12 SyncML for daiFy synchronization of daytime and night time phones ■ Capable of synchronizing your phonebook, calendar and to do Fist with your PC Capable of sending and receiving data via 3luetooth wireless technology or via infrared.