Washington: Net external debt inflows and aggregate net capital inflows to developing countries fell in 2011, driven by a sharp contraction in net inflows from official creditors and a collapse of portfolio equity flows, the World Bank reported Thursday.
Net external debt inflows to developing countries fell 9 percent in 2011 to $465 billion due to the sharp contraction in inflows from official creditors, which fell to $30 billion from $73 billion in 2010, reported Xinhua.
The downturn was due to the collapse in portfolio equity flows, which fell to $2 billion, in contrast to an inflow of $120 billion in 2010. The decreases were partially offset by inflows from commercial banks, sustained access to international bond markets and a rise in foreign direct investment, the Washington-based global lender said.
Net external debt inflows to developing countries fell 9% in 2011 to $465 bn