ASi" kUCTURE FlOR DEVELOPMENT

members of the World Bank. The dollar figures on Disbursements are drawings on long-term loan
debt shown in Tables 20 thomugh 24.are in U.S. dol- commitments during the year specified.
lars converted at official exchange rates.
Repayments of principal are actual amount of prin-
The data on debt include private nonguaranteed cipal (amortization) paid in foreign currency. goods,
debt reported by thirty developing countries and or services in the year specified.
complete or partial estimates for an additional Interest paymienits are actual amounts of interest
twenty that do not report but for which this type of paid in foreign currency, goods, or services in. the
debtis knownto be significant.
yearspecified.
Long-tenn debt has three components: public,
publicly guaranteed and private nonguaranteed Table 22. Aggregate net resource flows and net
loans. Public loans are external obligations of public transfers
debtors, hiduding the national goverranent, itsagences,
and autonomous public bodies. Publicly Total net flows on long-term debt are disbursements
guaranteed loans are external obligations of private less the repayment. of principal on public, publicly
debtors that are guaranteed for repayment by a guaranteed, and private nonguaranteed long-term
public entity These two categories are aggregated in debt Officia grnts are transfers made by an official
the tables. Private nonguaranteed loans are external agency in cash or in kind Li respect of which no
obligations of private debtors that are not guaran- legal debt is incurred by the recipient Data on offiteed
for repayment by a public entity.
cial grants exclude grants for technical assistance.
Use of IMF credit denotes repurchase obligations Net foingn direct investment (FDI) in the reporting
to the IMF for all uses of AMV resources, excluding economy is defined as investment that is. made to acthose
resulting from drawings in the reserve quire a lasting interest (usually 10 percent of the vattranche.
Itis shown for the end of the year specfied. ing stock) in an enterprise operating in a country
It comprises purclases outstanding under the credit other than that of the investor (defined according to
tranches, including enlarged access resources, and residency), the investor's purpose being an effective
all special facilities (the buffer stock, compensatory voice in the management of the enterprse -
financing, extended fund, and oil facilities), trust Portfolio equity flows is the sum of the country
find loans, and operations under the.enhanced funds (note that the sum of regional or incomestructural
adjustment facilities. Use of IMF credit group flows does not add up to the total due to the
outstanding at year-end (a stock) is converted to global funds),. depository receipts (American or
U-S. dollars at the dollar-SDR exchange rate in effect global), and direct purchases of shares by foreign inat
year-end.
vestors
Short-term debt is debt with an orginal maturity Aggregate net resource flows are the sum of net
of one year or less. Available data permit no distinc- flows on long-term debt (excluding use of IMF
tions between public and private nonguaranteed credit), plus offcial grants (exdluding technical asshort-term
debL
sistance) and net foreign drect investment. Aggre-
Total external debt is defined here as the sum of gate net tnms,fers are equal to aggregate net resource
public, publicly guaranteed, and private nonguar- flows minus interest payments on long-term loans
anteed long-term debt, use of IMF credit, and short- and remittance of all profits.
term debt
Total arrears on long-term debt outstanding and dis- Table 23. Total extemal debt ratios
bursed (LDOD) denotes principal and interest due
but not paid.
Net present value of total exernaf debt as a parentage of
Ratio of present wlue to nomial value is the dis- exports ofgoods and serces is the discounted value of
counted value of the future debt service payments future debt service to exports of goods and services.
divided by the face value of debt.
The present value canbe higher or lower than the
nominal value of debL The determining factor for
Table 21 Flow of public and private extemal the present value being above or below par are the
capital
interest rates of loans and the discount rate used in
the present value calculationL A loan with an inter-
Data on disbursements, repayment of princpal est rate higher than the discount rate yields a pre-
(amortization), and payment of interest are for pub- sent value that is larger than the nominal value of
lic, publicly guaranteed, and private nonguaranteed debt the opposite holds for loans with an interest
long-term loans,
rate lower than the discount rate. Throughout this
240