Press Release
August 4, 2015

Emerging markets are suffering from what appears to be a “perfect storm” in recent weeks, with equities, bonds and currencies seeing declines, according to a new research note by the Institute of International Finance.

“Emerging market countries navigating harsh global economic and financial conditions must pursue strong economic policies to reduce vulnerabilities,” said Hung Tran, executive managing director of the IIF. “These countries will need to articulate a reform agenda designed to improve potential future growth.” 

Emerging Markets in Perfect Storm IIF

Press Release
August 4, 2015

On July 1, 2015, a task force led by the World Bank and FIRST Initiative released a consultation on the Design, Implementation and Evaluation of Public Credit Guarantee Schemes for Small and Medium Enterprises (SMEs). The IIF is a member of the task force.

Many banks use such schemes and have reported impediments to their usage, as detailed in an IIF survey. The Task Force has produced a set of nonbinding Principles to guide the development of schemes that provide maximum benefit to alleviating the SME financing gap and the least amount of market distortion. IIF members are invited to participate in an ongoing public consultation, and comments should be submitted by August 31, 2015: https://consultations.worldbank.org/consultation/developing-principles-public-credit-guarantee-schemes-cgss-smes.

Other members of the Task Force include: the Arab Monetary Fund, the Asian Credit Supplementation Institution Confederation, the Association of African Development Finance Institutions, the European Association of Mutual Guarantee Societies, and the Ibero-American Guarantee Network.

Press Release
July 29, 2015

Emerging market portfolio inflows weakened to $6.7 billion in July from $11.3 billion in June, according to the latest EM Portfolio Flows Tracker by the Institute of International Finance.

“EM portfolio flows have been subdued in recent weeks,” said Robin Koepke, an economist at the IIF and lead author of the report. “Investors seem to be in a ‘wait-and-see’ mode amidst concerns about Chinese equity market volatility and continued uncertainty regarding Fed liftoff and Greece.”

The IIF noted that EM equity inflows slowed to a year-to-date low of $1.6 billion in July, while debt flows remained subdued at $5.1 billion. EM Asia saw its weakest inflows of the year as concerns about China held back flows to other markets in the region (Chart 1).

Due to data limitations, portfolio flows to China are not included in the estimation of the Tracker, but a new proxy for foreign purchases of Chinese stocks published by the PBOC indicates significant retrenchment in June (Chart 2).

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The Institute of International Finance is the global association of the financial industry, with close to 500 members from 70 countries. Its mission is to support the financial industry in the prudent management of risks; to develop sound industry practices; and to advocate for regulatory, financial and economic policies that are in the broad interests of its members and foster global financial stability and sustainable economic growth. Within its membership IIF counts commercial and investment banks, asset managers, insurance companies, sovereign wealth funds, hedge funds, central banks and development banks. For more information visit www.iif.com.    

Press Release
July 28, 2015

Flows to emerging market funds have been particularly volatile amid concerns about Chinese equity markets, falling commodity prices and shifting perceptions on the timing of the first Fed rate hike, according to the IIF’s latest Portfolio Allocation Trends report. Portfolio Allocation Trends report was formerly known as the Trends in Investment Fund Portfolio Allocation.

“The share of emerging market assets in fund investors' portfolios has dropped to a post-crisis low," said Sonja Gibbs, director of capital markets at the IIF.  “This month's volatility in Chinese equity markets has actually masked the broader EM picture. Flows to Chinese onshore equity funds surged in early July, reflecting the impact of recent stimulus measures, which encouraged Chinese fund managers to use their own capital to buy shares. Stripping out China, EM mutual funds and ETFs have actually seen net outflows of $2.3 billion month to date." 

Press Release
July 8, 2015

Emerging market GDP growth picked up in Q2 after its multi-year lows in the previous two quarters, according to the latest update of the IIF’s EM Coincident Indicator.  The EMCI rose to 2.7 percent in June, up by 0.5pp relative to May and 0.7pp relative to March. This increased momentum is broad-based across regions, but most notably in EMEA and LATAM. 

“It is particularly encouraging that EM trade data continued to show signs of a turnaround this quarter, following a prolonged period of weakness since last autumn,” said Kristina Morkunaite, lead author of the report. “This turnaround suggests that stronger growth in advanced economies is now exerting more pull, raising hopes that EM weakness has run its course and activity will continue to gain momentum in 2015H2.

Press Release
June 25, 2015

Portfolio flows to emerging markets fell in June, reaching a year to date low of $4.2 billion, according to the latest EM Portfolio Flows Tracker by the Institute of International Finance.

“Portfolio flows to emerging markets have weakened further,” said Charles Collyns, chief economist at the IIF. “Emerging market investors seem to have become increasingly cautious as the Fed’s first interest rate hike since 2006 is approaching. Fears of Greece leaving the Euro Area have not helped either.”

The IIF reported that emerging market debt flows continued a five month streak of subdued momentum, while equity markets experienced the weakest monthly inflow of 2015. On a regional basis, inflows to EM Asia slowed in June while flows to Latin America were more resilient. In Emerging Europe, outflows continued for the fifth consecutive month.

Press Release
June 23, 2015

MEETING OF THE PARIS CLUB WITH REPRESENTATIVES OF NON PARIS CLUB BILATERAL CREDITORS AND REPRESENTATIVES OF THE PRIVATE SECTOR

For the 15th consecutive year, the Paris Club and the Institute of International Finance jointly organized a meeting between Paris Club creditors, Paris Club ad hoc participants and private creditors, and representatives from the International Monetary Fund and the World Bank.

Press Release
June 16, 2015

The Institute of International Finance today announced that Clay Berry will join as Chief Economist for Europe effective August 17.

Berry currently serves as the U.S. Department of the Treasury’s Financial Attaché in Moscow. Berry represents the Treasury Department in Russia and the Commonwealth of Independent States (CIS), advancing the Treasury’s interests in the region.

“Developments in Europe, especially Emerging Europe, will be a dominant theme in the global economy for the foreseeable future,” said Tim Adams, president and CEO of the IIF. “Clay’s experience and contacts throughout the region will be a vital asset to the IIF and its members.”

Press Release
June 10, 2015

Emerging market GDP growth likely accelerated in 2015Q2 after having fallen to a six-year low in Q1 according to the latest update of the IIF's EM Coincident Indicator. The EMCI showed an increase to 2.2 percent in May, up from 1.6 percent in April.

“We’ve begun to see a more positive trend in emerging market growth since the steep decline observed since last autumn,” said Kristina Morkunaite, lead author of the report. “This underpins hope that EM growth will pick up in Q2, having reached a six-year low in the first quarter of 2015.”

Press Release
June 9, 2015

The Institute of International Finance today announced the opening of a new European Representative Office in London.

“Europe continues to play a large role in the global financial system and within our membership,” said Tim Adams, president and CEO of the IIF. “Opening this office will allow us to better serve our members in the region and more closely engage with key global regulatory bodies.”

Media Contacts

Andrew DeSouza
Tel: +1-202-857-3602 
E-mail: adesouza@iif.com