The Institute of International Finance (IIF) signalled that a clean debt restructuring in Argentina is essential for the health of emerging debt markets, as it revealed that private investment in emerging markets has reached a 10-year low.

Meeting ahead of the World Economic Forum in New York, the IIF said that net capital flows to major emerging market economies fell to $115bn (€128bn) in 2001, down from $169bn in 2000. It is the lowest figure since 1991. Crises in Argentina and Turkey hit investment hard.