UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number

811-7066

 

 

Western Asset Emerging Markets Income Fund Inc.

(Exact name of registrant as specified in charter)

 

125 Broad Street, New York, NY

 

10004

(Address of principal executive offices)

 

(Zip code)

 

Robert I. Frenkel, Esq.

Legg Mason & Co., LLC

300 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

 

Registrant's telephone number, including area code:

1-800-451-2010

 

 

Date of fiscal year end:

August 31

 

 

 

 

Date of reporting period:

November 30, 2006

 

 



 

WESTERN ASSET EMERGING MARKETS
INCOME FUND INC.

 

FORM N-Q

November 30, 2006

 



 

ITEM 1.                  SCHEDULE OF INVESTMENTS

 



 

Western Asset Emerging Markets Income Fund Inc.

 

Schedule of Investments (unaudited)

November 30, 2006

 

Face
Amount†

 

 

 

Security

 

Value

 

SOVEREIGN BONDS — 69.4%

 

 

 

Argentina — 4.2%

 

 

 

 

 

 

 

Republic of Argentina:

 

 

 

500,000

 

DEM

 

7.000% due 3/18/04 (a)

 

$

106,361

 

1,000,000

 

EUR

 

9.000% due 4/26/06 (a)

 

414,059

 

550,000

 

EUR

 

9.000% due 7/6/10 (a)

 

227,308

 

33,750

 

 

 

5.590% due 8/3/12 (b)

 

31,532

 

950,000

 

DEM

 

11.750% due 11/13/26 (a)

 

194,035

 

692,999

 

ARS

 

Bonds, 2.000% due 1/3/10 (b)

 

460,565

 

640,539

 

ARS

 

Discount Bonds, 5.830% due 12/31/33 (b)

 

263,517

 

 

 

 

 

GDP Linked Securities:

 

 

 

490,000

 

 

 

0.006% due 12/15/35 (b)

 

63,235

 

10,662,020

 

ARS

 

0.649% due 12/15/35 (b)

 

394,937

 

600,000

 

EUR

 

0.662% due 12/15/35 (b)

 

101,284

 

 

 

 

 

Medium-Term Notes:

 

 

 

500,000,000

 

ITL

 

7.000% due 3/18/04 (a)

 

106,581

 

1,000,000

 

EUR

 

10.000% due 2/22/07 (a)

 

427,651

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Argentina

 

2,791,065

 

 

 

 

 

 

 

 

 

Brazil — 15.4%

 

 

 

 

 

 

 

Federative Republic of Brazil:

 

 

 

4,203,000

 

 

 

11.000% due 8/17/40 (c)

 

5,591,041

 

 

 

 

 

Collective Action Securities:

 

 

 

755,000

 

 

 

8.750% due 2/4/25

 

926,762

 

3,391,000

 

 

 

Notes, 8.000% due 1/15/18

 

3,785,204

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Brazil

 

10,303,007

 

 

 

 

 

 

 

 

 

Colombia — 3.4%

 

 

 

 

 

 

 

Republic of Colombia:

 

 

 

175,000

 

 

 

8.125% due 5/21/24

 

198,494

 

2,002,000

 

 

 

7.375% due 9/18/37

 

2,092,090

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Colombia

 

2,290,584

 

 

 

 

 

 

 

 

 

Ecuador — 1.2%

 

 

 

877,000

 

 

 

Republic of Ecuador, 10.000% due 8/15/30 (d)

 

819,995

 

 

 

 

 

 

 

 

 

El Salvador — 2.0%

 

 

 

 

 

 

 

Republic of El Salvador:

 

 

 

670,000

 

 

 

7.750% due 1/24/23 (d)

 

773,850

 

490,000

 

 

 

8.250% due 4/10/32 (d)

 

585,550

 

 

 

 

 

 

 

 

 

 

 

 

 

Total El Salvador

 

1,359,400

 

 

 

 

 

 

 

 

 

Indonesia — 0.5%

 

 

 

300,000

 

 

 

Republic of Indonesia, 8.500% due 10/12/35 (d)

 

363,750

 

 

 

 

 

 

 

 

 

Malaysia — 2.0%

 

 

 

633,000

 

 

 

Federation of Malaysia, 8.750% due 6/1/09

 

689,774

 

598,000

 

 

 

Penerbangan Malaysia Berhad, 5.625% due 3/15/16 (d)

 

615,494

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Malaysia

 

1,305,268

 

 

 

 

 

 

 

 

 

Mexico — 11.8%

 

 

 

 

 

 

 

United Mexican States:

 

 

 

325,000

 

 

 

11.375% due 9/15/16

 

469,706

 

 

 

 

 

Medium-Term Notes:

 

 

 

5,090,000

 

 

 

5.625% due 1/15/17 (c)

 

5,120,540

 

935,000

 

 

 

8.300% due 8/15/31

 

1,203,345

 

1,031,000

 

 

 

Series A, 6.625% due 3/3/15

 

1,109,872

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Mexico

 

7,903,463

 

 

See Notes to Schedule of Investments.

 

1



 

Western Asset Emerging Markets Income Fund Inc.

 

Schedule of Investments (unaudited) (continued)

November 30, 2006

 

Face
Amount†

 

Security

 

Value

 

SOVEREIGN BONDS — 69.4%

 

 

 

Panama — 2.5%

 

 

 

5,000

 

Republic of Panama:

 

 

 

934,000

 

9.625% due 2/8/11

 

$

5,741

 

407,000

 

9.375% due 4/1/29

 

1,251,560

 

 

 

6.700% due 1/26/36

 

419,516

 

 

 

 

 

 

 

 

 

Total Panama

 

1,676,817

 

 

 

 

 

 

 

Peru — 3.0%

 

 

 

 

 

Republic of Peru:

 

 

 

574,000

 

8.750% due 11/21/33

 

741,464

 

1,262,400

 

FLIRB, 5.000% due 3/7/17 (b)

 

1,249,776

 

 

 

 

 

 

 

 

 

Total Peru

 

1,991,240

 

 

 

 

 

 

 

Philippines — 1.6%

 

 

 

 

 

Republic of the Philippines:

 

 

 

484,000

 

10.625% due 3/16/25 (e)

 

683,650

 

351,000

 

7.750% due 1/14/31

 

390,268

 

 

 

 

 

 

 

 

 

Total Philippines

 

1,073,918

 

 

 

 

 

 

 

Russia — 7.4%

 

 

 

 

 

Russian Federation:

 

 

 

750,000

 

11.000% due 7/24/18 (d)

 

1,092,000

 

275,000

 

12.750% due 6/24/28 (d)

 

501,531

 

2,978,000

 

5.000% due 3/31/30 (d)

 

3,389,336

 

 

 

 

 

 

 

 

 

Total Russia

 

4,982,867

 

 

 

 

 

 

 

South Africa — 1.7%

 

 

 

1,075,000

 

Republic of South Africa, 6.500% due 6/2/14

 

1,143,531

 

 

 

 

 

 

 

Turkey — 3.9%

 

 

 

 

 

Republic of Turkey:

 

 

 

605,000

 

11.500% due 1/23/12

 

739,612

 

126,000

 

11.000% due 1/14/13

 

154,161

 

919,000

 

11.875% due 1/15/30 (e)

 

1,401,475

 

80,000

 

Collective Action Securities, Notes, 9.500% due 1/15/14

 

92,800

 

235,000

 

Notes, 6.875% due 3/17/36

 

221,488

 

 

 

 

 

 

 

 

 

Total Turkey

 

2,609,536

 

 

 

 

 

 

 

Uruguay — 1.2%

 

 

 

188,066

 

Republic of Uruguay, Bonds, 7.625% due 3/21/36

 

201,701

 

559,925

 

Republic of Uruguay, Benchmark Bonds, 7.875% due 1/15/33 (f)

 

616,617

 

 

 

 

 

 

 

 

 

Total Uruguay

 

818,318

 

 

 

 

 

 

 

Venezuela — 7.6%

 

 

 

 

 

Bolivarian Republic of Venezuela:

 

 

 

75,000

 

5.375% due 8/7/10 (d)

 

73,294

 

1,053,000

 

8.500% due 10/8/14

 

1,178,043

 

830,000

 

5.750% due 2/26/16

 

777,295

 

217,000

 

7.650% due 4/21/25

 

229,315

 

 

 

Collective Action Securities:

 

 

 

1,149,000

 

9.375% due 1/13/34

 

1,467,273

 

1,100,000

 

Notes, 10.750% due 9/19/13

 

1,360,425

 

 

 

 

 

 

 

 

 

Total Venezuela

 

5,085,645

 

 

 

 

 

 

 

 

 

TOTAL SOVEREIGN BONDS
(Cost — $42,776,874)

 

46,518,404

 

 

See Notes to Schedule of Investments.

 

2



 

Western Asset Emerging Markets Income Fund Inc.

 

Schedule of Investments (unaudited) (continued)

November 30, 2006

 

Face
Amount†

 

 

 

Security

 

Value

 

CORPORATE BONDS & NOTES — 22.9%

 

 

 

Brazil — 1.9%

 

 

 

 

 

 

 

Vale Overseas Ltd., Notes:

 

 

 

275,000

 

 

 

6.250% due 1/11/16

 

$

279,393

 

471,000

 

 

 

8.250% due 1/17/34

 

561,266

 

450,000

 

 

 

6.875% due 11/21/36

 

461,759

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Brazil

 

1,302,418

 

 

 

 

 

 

 

 

 

Chile — 1.7%

 

 

 

225,000

 

 

 

Corporacion Nacional del Cobre-Codelco, Notes, 5.500% due 10/15/13 (d)

 

228,048

 

861,000

 

 

 

Enersis SA, Notes, 7.375% due 1/15/14

 

937,462

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Chile

 

1,165,510

 

 

 

 

 

 

 

 

 

Malaysia — 0.2%

 

 

 

146,000

 

 

 

Sarawak International Inc., Senior Bonds, 5.500% due 8/3/15

 

145,420

 

 

 

 

 

 

 

 

 

Mexico — 5.7%

 

 

 

40,000

 

 

 

Axtel SA de CV, 11.000% due 12/15/13

 

44,600

 

160,000

 

 

 

Banco Mercantil del Norte SA, Bonds, 6.135% due 10/13/16 (b)(d)

 

162,957

 

 

 

 

 

Grupo Transportacion Ferroviaria Mexicana SA de CV, Senior Notes:

 

 

 

100,000

 

 

 

9.375% due 5/1/12

 

107,500

 

20,000

 

 

 

12.500% due 6/15/12

 

21,850

 

 

 

 

 

Pemex Project Funding Master Trust:

 

 

 

68,000

 

 

 

6.125% due 8/15/08

 

68,918

 

800,000

 

 

 

9.125% due 10/13/10

 

902,400

 

1,100,000

 

 

 

8.000% due 11/15/11

 

1,218,250

 

275,000

 

 

 

Guaranteed Bonds, 9.500% due 9/15/27

 

371,250

 

500,000

 

 

 

Notes, 6.625% due 6/15/35 (d)

 

513,125

 

47,000

 

 

 

Senior Notes, 5.991% due 12/3/12 (b)(d)

 

47,200

 

4,000,000

 

MXN

 

Telefonos de Mexico SA de CV, Senior Notes, 8.750% due 1/31/16

 

369,008

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Mexico

 

3,827,058

 

 

 

 

 

 

 

 

 

Russia — 10.6%

 

 

 

1,880,000

 

 

 

Gaz Capital SA, Notes, 8.625% due 4/28/34 (d)

 

2,418,620

 

170,000

 

 

 

Gazprom, Loan Participation Notes, 6.212% due 11/22/16 (d)

 

171,488

 

 

 

 

 

Gazprom, Bonds:

 

 

 

39,330,000

 

RUB

 

Series A7, 6.790% due 10/29/09

 

1,498,657

 

13,110,000

 

RUB

 

Series A8, 7.000% due 10/27/11

 

499,552

 

17,410,000

 

RUB

 

Gazprom OAO, Series A6, 6.950% due 8/6/09

 

668,212

 

1,230,000

 

 

 

Russian Agricultural Bank, Notes, 7.175% due 5/16/13 (d)

 

1,305,337

 

470,000

 

 

 

TNK-BP Finance SA, 7.500% due 7/18/16 (d)

 

497,491

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Russia

 

7,059,357

 

 

 

 

 

 

 

 

 

Venezuela — 2.8%

 

 

 

1,930,000

 

 

 

Petrozuata Finance Inc., 8.220% due 4/1/17 (d)

 

1,881,750

 

 

 

 

 

TOTAL CORPORATE BONDS & NOTES
(Cost — $14,851,153)

 

15,381,513

 

 

Warrants

 

 

 

Security

 

Value

 

WARRANT — 0.1%

 

 

 

1,500

 

 

 

Bolivarian Republic of Venezuela, Oil-linked payment obligations, Expires 4/15/20
(Cost — $46,500)

 

48,938

 

 

 

 

 

TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS
(Cost — $57,674,527)

 

61,948,855

 

 

See Notes to Schedule of Investments.

 

3



 

Western Asset Emerging Markets Income Fund Inc.

 

Schedule of Investments (unaudited) (continued)

November 30, 2006

 

Face
Amount†

 

 

 

Security

 

Value

 

SHORT-TERM INVESTMENTS(c) — 7.6%

 

 

 

Certificate of Deposit (Yankee) — 0.9%

 

 

 

600,000

 

 

 

UBS AG Jersey Branch, 3.841% due 1/11/07
(Cost — $600,522)

 

$

600,522

 

 

 

 

 

 

 

 

 

Sovereign Bonds — 4.9%

 

 

 

 

 

 

 

Egypt Treasury Bills:

 

 

 

1,500,000

 

EGP

 

Series 364, zero coupon bond to yield 9.491% due 11/6/07

 

240,686

 

3,900,000

 

EGP

 

Zero coupon bond to yield 9.646% due 4/17/07

 

657,733

 

14,800,000

 

EGP

 

Zero coupon bond to yield 9.543% due 10/30/07

 

2,377,747

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Sovereign Bonds (Cost — $3,270,174)

 

3,276,166

 

 

 

 

 

 

 

 

 

U.S. Government Agency — 0.2%

 

 

 

100,000

 

 

 

Federal National Mortgage Association (FNMA), Discount Notes, 5.197%
due 6/25/07 (g) (h)
(Cost — $97,139)

 

97,153

 

 

 

 

 

 

 

 

 

Repurchase Agreement — 1.6%

 

 

 

1,095,000

 

 

 

Nomura Securities International Inc. repurchase agreement dated 11/30/06, 5.280% due 12/1/06; Proceeds at maturity - $1,095,161; (Fully collateralized by various U.S. Treasury obligations, 4.750% to 8.125% due 3/31/11 to 8/15/26; Market value - $1,117,112)
(Cost — $1,095,000)

 

1,095,000

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL SHORT-TERM INVESTMENTS
(Cost — $5,062,835)

 

5,068,841

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL INVESTMENTS — 100.0%
(Cost — $62,737,362#)

 

$

67,017,696

 

 


Face amount denominated in U.S. dollars, unless otherwise noted.

(a)

Security is currently in default.

(b)

Variable rate security.  Interest rate disclosed is that which is in effect at November 30, 2006.

(c)

All or a portion of this security is segregated for open futures contracts and reverse repurchase agreements.

(d)

Security is exempt from registration under Rule 144A of the Securities Act of 1933.  This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers.  This security has been deemed liquid pursuant to guidelines approved by the Board of Directors, unless otherwise noted.

(e)

All or a portion of this security is held by the counterparty as collateral for open reverse repurchase agreements.

(f)

Payment-in-kind security for which part of the income earned may be paid as additional principal.

(g)

Rate shown represents yield-to-maturity.

(h)

All or a portion of this security is held at the broker as collateral for open futures contracts.

#

Aggregate cost for federal income tax purposes is substantially the same.

 

 

 

Abbreviations used in this schedule:

 

ARS - Argentine Peso

 

DEM - German Mark

 

EGP - Egyptian Pound

 

EUR - Euro

 

FLIRB - Front-Loaded Interest Reduction Bonds

 

GDP - Gross Domestic Product

 

ITL - Italian Lira

 

MXN - Mexican Peso

 

RUB - Russian Ruble

 

See Notes to Schedule of Investments.

 

4



 

Notes to Schedule of Investments (unaudited)

 

1.     Organization and Significant Accounting Policies

 

Western Asset Emerging Markets Income Fund Inc. (formerly known as Salomon Brothers Emerging Markets Income Fund Inc.) (the “Fund”) was incorporated in Maryland and is registered as a non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended, (the “1940 Act”).

 

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).

 

(a)   Investment Valuation. Debt securities are valued at the mean between the bid and asked prices provided by an independent pricing service that are based on transactions in debt obligations, quotations from bond dealers, market transactions in comparable securities and various other relationships between securities. Equity securities for which market quotations are available are valued at the last sale price or official closing price on the primary market or exchange on which they trade. Publicly traded foreign government debt securities are typically traded internationally in the over-the-counter market, and are valued at the mean between the bid and asked prices as of the close of business of that market. When prices are not readily available, or are determined not to reflect fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund may value these investments at fair value as determined in accordance with the procedures approved by the Fund’s Board of Directors. Short-term obligations with maturities of 60 days or less are valued at amortized cost, which approximates market value.

 

(b)   Repurchase Agreements. When entering into repurchase agreements, it is the Fund’s policy that its custodian or a third party custodian take possession of the underlying collateral securities, the market value of which at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market to ensure the adequacy of the collateral. If the seller defaults, and the market value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited.

 

(c)   Reverse Repurchase Agreements. The Fund may enter into reverse repurchase agreements in which the Fund sells portfolio securities and agrees to repurchase them from the buyer at a specified date and price. Whenever the Fund enters into a reverse repurchase agreement, the Fund’s custodian delivers liquid assets to the counterparty in an amount at least equal to the repurchase price (including accrued interest). The Fund pays interest on amounts obtained pursuant to reverse repurchase agreements. Reverse repurchase agreements are considered to be borrowings, which may create leverage risk to the Fund.

 

(d)   Financial Futures Contracts. The Fund may enter into financial futures contracts typically to hedge a portion of the portfolio. Upon entering into a financial futures contract, the Fund is required to deposit cash or securities as initial margin. Additional securities are also segregated up to the current market value of the financial futures contracts. Subsequent payments, known as variation margin, are made or received by the Fund each day, depending on the daily fluctuation in the value of the underlying financial instruments. The Fund recognizes an unrealized gain or loss equal to the daily variation margin. When the financial futures contracts are closed, a realized gain or loss is recognized equal to the difference between the proceeds from (or cost of) the closing transactions and the Fund’s basis in the contracts.

 

The risks associated with entering into financial futures contracts include the possibility that a change in the value of the contract may not correlate with the changes in the value of the underlying instruments. In addition, investing in financial futures contracts involves the risk that the Fund could lose more than the original margin deposit and subsequent payments required for a futures transaction. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.

 

(e)   Loan Participations. The Fund may invest in loans arranged through private negotiation between one or more financial institutions. The Fund’s investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower and the Fund may not benefit directly from any collateral supporting the loan in which it has purchased the participation.

 

The Fund assumes the credit risk of the borrower, the lender that is selling the participation and any other persons interpositioned between the Fund and the borrower. In the event of the insolvency of the lender selling the participation, the Fund may be treated as a general creditor of the lender and may not benefit from any set-off between the lender and the borrower.

 

(f)    Foreign Currency Translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.

 

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of

 



 

governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

 

(g)   Credit and Market Risk. The Fund invests in high yield and emerging market instruments that are subject to certain credit and market risks. The yields of high yield and emerging market debt obligations reflect, among other things, perceived credit and market risks. The Fund’s investment in securities rated below investment grade typically involve risks not associated with higher rated securities including, among others, greater risk related to timely and ultimate payment of interest and principal, greater market price volatility and less liquid secondary market trading. The consequences of political, social, economic or diplomatic changes may have disruptive effects on the market prices of investments held by the Fund. The Fund’s investment in non-dollar denominated securities may also result in foreign currency losses caused by devaluations and exchange rate fluctuations.

 

(h)   Security Transactions. Security transactions are accounted for on a trade date basis.

 

2.     Investments

 

At November 30, 2006, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

 

Gross unrealized appreciation

 

$

4,413,961

 

Gross unrealized depreciation

 

(133,627

)

Net unrealized appreciation

 

$

4,280,334

 

 

At November 30, 2006, the Fund had the following open futures contracts:

 

 

 

Number of
Contracts

 

Expiration
Date

 

Basis
Value

 

Market
Value

 

Unrealized
Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts to Sell:

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury 10 Year Notes

 

100

 

03/07

 

$

10,805,922

 

$

10,918,750

 

$

(112,828

)

 

Transactions in reverse repurchase agreements for the Fund during the period ended November 30, 2006 were as follows:

 

Average

 

Weighted

 

Maximum

 

Daily

 

Average

 

Amount

 

Balance

 

Interest Rate

 

Outstanding

 

$

1,845,224

 

3.575

%

$

2,907,889

 

 

Interest rates on reverse repurchase agreements ranged from 0.350% to 5.150% during the period ended November 30, 2006.

 

At November 30, 2006, the Fund had the following open reverse repurchase agreements:

 

Face
Amount

 

Security

 

Value

 

$

433,414

 

Reverse Repurchase Agreement with Credit Suisse First Boston,

 

 

 

 

 

dated 10/27/06 bearing 4.000% to be repurchased at $436,063 on 12/20/06

 

 

 

 

 

collateralized by: $314,000 Republic of Turkey,

 

 

 

 

 

11.875% due 01/15/30;

 

 

 

 

 

Market value (including accrued interest) - $492,934

 

$

433,414

 

612,066

 

Reverse Repurchase Agreement with Credit Suisse First Boston,

 

 

 

 

 

dated 11/01/06 bearing 5.000% to be repurchased at $616,317 on 12/20/06

 

 

 

 

 

collateralized by: $484,000 Republic of Philippines,

 

 

 

 

 

10.625% due 03/16/25;

 

 

 

 

 

Market value (including accrued interest) - $694,446

 

612,066

 

846,106

 

Reverse Repurchase Agreement with Deutsche Bank Securities Inc.,

 

 

 

 

 

dated 11/16/06 bearing 2.750% to be repurchased at a date and an amount to be determined,

 

 

 

 

 

collateralized by: $605,000 Republic of Turkey,

 

 

 

 

 

11.875% due 01/15/30;

 

 

 

 

 

Market value (including accrued interest) - $949,762

 

846,106

 

 

 

 

 

 

 

 

 

Total Reverse Repurchase Agreements

 

 

 

 

 

(Proceeds — $1,891,586)

 

$

1,891,586

 

 



 

ITEM 2.                  CONTROLS AND PROCEDURES.

 

(a)                                  The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.

 

(b)                                 There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.

 

ITEM 3.                  EXHIBITS.

 

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached hereto.

 



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Western Asset Emerging Markets Income Fund Inc.

 

 

By

/s/ R. Jay Gerken

 

 

R. Jay Gerken

 

 

Chief Executive Officer

 

 

 

Date:  January 29, 2007

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

By

/s/ R. Jay Gerken

 

 

R. Jay Gerken

 

 

Chief Executive Officer

 

 

 

Date:  January 29, 2007

 

 

By

/s/ Frances M. Guggino

 

 

Frances M. Guggino

 

 

Chief Financial Officer

 

 

 

Date:   January 29, 2007