1987 - Year of the shrinking market?
"Our liquidity is the highest in 10 years,' said Alain DeMaynadier, director of investments at the Inter-American Development Bank. This is the result of a slowdown in disbursements, as austerity measures in the countries of Latin America have restrained investment programmes.
In 1986 the bank's projected borrowing programme was $2.5 billion, but it went to the markets for only $1.6 billion.
Loan demand will remain sluggish in 1987, since the bank is not allowed to increase its lending to the larger countries-- Mexico, Argentina and Brazil--which are thought to have had more than their fair share already.
IADB has $9.4 billion outstanding in long-term debt. Of this only about 20% is in dollars. Deutschemark and yen debt combined make up 18%, Swiss franc debt 25% and sterling and guilder the rest.
The bank is now going through its seventh replenishment negotiations, and all figures are in the melting pot. "We're hoping to double our loans in the next four years,' DeMaynadier said. "And, since we match-fund, that means we'll probably be tapping the capital markets more frequently.'