The IIF, an association of more than 300 major global banks, mutual funds, securities firms and similar private companies, says private flows are projected to fall to a little below $160 billion in 1998 from $240 billion in 1997 and a peak of over $300 billion in 1996.

Its annual "Capital Flows to Emerging Market Economies" report, released here on Tuesday, says the fall "reflects both the direct impacts of the financial crises in Russia and Asia and consequential effects transmitted through financial markets." IIF managing director Charles Dallara also releasedhis organisation's policy letter to ministers of finance and central bank governors arriving here for the annual World Bank- International Monetary Fund (IMF) meeting beginning later this week which called for "a forceful strategy" to secure stability and open markets.