Appetite for local currency deals tumbles

The previously fast-paced movement in the emerging markets towards raising funds in local currency has been brought to an abrupt halt by the financial crisis.  With fear entrenched among investors, most are extremely hesitant about funding trade deals or projects in local currencies.  Ted Kim takes a look at when or even if this market might recover.

Perhaps one of the hardest hit areas of the meltdown in the global banking system has been emerging market local currency financing programmes that had, at least for most of this year, been gaining critical momentum among issuers and investors alike.