The Euroloan markets

1. The Asian crisis in late 1997 jolted the Euroloan market. Interest margins began to rise and maturities began to fall. The Russian crisis of 1998 dealt a further and more serious blow causing total Euroloan market volume to fall from US$459 billion equivalent in 1997 to US$397 billion equivalent in 1998. Emerging market economies suffered the most but Western Europe did not escape. Western European loan volume fell from US$311 billion equivalent in 1997 to US$270 billion equivalent in 1998 whilst maturities shortened and margins rose, even for good quality borrowers. Volume for United Kingdom borrowers fell from US$166.5 billion equivalent to US$138.8 billion equivalent but rose to 36 per cent of the total market (Figure 21).