Development Financial Institutions (DFIs) have been restructured through mergers and acquisitions, closure, liquidation and reorganization. Auction of Pakistan Investment Bond (PIB) for tenures of five to ten years government paper and a burgeoning corporate bond market has begun to emerge bringing together long term institutional investors and borrowers interested in long term sources of financing.
Many countries in the region, for example Brazil, have taken advantage of the changed environment and have systematically made their debt stock less vulnerable to exchange rate and interest rate movements (e.g. through changing the denomination and by issuing longer term fixed-rate debt). Favourable market developments have contributed to strengthening of external positions.