The report, International Banking and Financial Market Developments, details market activity in the first quarter and borrowings in the fourth quarter. It was made available in advance to the media.

"Emerging market borrowers continued to shun international banks in the fourth quarter as they had for most of the year," the BIS said.

It noted that borrowers repaid $71 billion in total claims during the entire year 1999.

However, the BIS noted trends varied from region to region.

"BIS reporting banks continued to receive heavy net repayments from Asia, while resuming lending to Latin America, particularly Brazil. Major borrowers in eastern Europe such as Hungary and Poland had ready access to funds but Russian banks remained shut out of international credit markets," it said.

Eastern Europe as awhole saw a small increases in net claims-lending and purchase of debt securities - for the first time since Russia's currency crisis in August 1998, but Russia continued to see a decline.

However, the BIS noted evidence of resumption of lending to the Russian non-bank sector in the second half of 1999.

"In particular, figures for the fourth quarter show a rise in purchases of Russian non-bank securities-$400 million-mainly by banks in Germany," the BIS said.

Fourth quarter data showed that South Korea, China and Thailand accounted for the bulk of the $17 billion drop in banks claims vis-a-vis Asia. It said Asian borrowers repaid a total of $53 billion to international banks in 1999.But international bank claims on Latin America rose in the fourth quarter by $4.4 billion, the first rise since a sharp contraction following Russia's currency crisis in August 1998.

This was separate from $26 billion which the region raised via issues of fixed-income securities in 1999.

Such activity would suggest atendency to rely more onsecurities markets for financing. But the BIS noted that Brazil, for example, saw a reflow of credit totalling $3.8 billion in the fourth quarter. It was the first net inflow for Brazil since the second quarter of 1998.

Argentina also increased bank funds by $1 billion.

Mexico, however, continued to make net repayments.

Regarding lending currencies, the BIS noted said flows in the fourth quarter shifted sharply to dollar and yen.

Lending in dollars surged to $98 billion. It rose to $ 32billion for yen after an extended period of repayments tied to Japanese banks' pullback from international lending markets.

"By contrast, lending in euros turned negative for the firsttime in the new currency's existence," the BIS said.