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Report of Independent Registered Public
Accounting Firm To the Board of Directors and Shareholders of T. Rowe Price Institutional Emerging Markets Bond
Fund, Inc. In planning and performing our audit of the
financial statements of T. Rowe Price Institutional Emerging Markets Bond Fund,
Inc. (hereafter referred to as the "Company") as of and for the year ended
December 31, 2006, in accordance with the standards of the Public Company
Accounting Oversight Board (United States), we considered the Company's internal
control over financial reporting, including control activities for safeguarding
securities, as a basis for designing our auditing procedures for the purpose of
expressing our opinion on the financial statements and to comply with the
requirements of Form N-SAR, but not for the purpose of expressing an opinion on
the effectiveness of the Company's internal control over financial reporting.
Accordingly, we express no such opinion. The management of the Company is responsible for
establishing and maintaining effective internal control over financial
reporting. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of
controls. A company's internal control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. Such internal control
over financial reporting includes policies and procedures that provide
reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of a company's assets that could have a material
effect on the financial statements. Because of its inherent limitations, internal
control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to
the risk that controls may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may
deteriorate. A control deficiency exists when the design or
operation of a control does not allow management or employees, in the normal
course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control
deficiency, or combination of control deficiencies, that adversely affects the
company's ability to initiate, authorize, record, process or report external
financial data reliably in accordance with generally accepted accounting
principles such that there is more than a remote likelihood that a misstatement
of the company's annual or interim financial statements that is more than
inconsequential will not be prevented or detected. A material weakness is a
control deficiency, or combination of control deficiencies, that results in more
than a remote likelihood that a material misstatement of the annual or interim
financial statements will not be prevented or detected. Our consideration of the Company's internal
control over financial reporting was for the limited purpose described in the
first paragraph and would not necessarily disclose all deficiencies in internal
control over financial reporting that might be significant deficiencies or
material weaknesses under standards established by the Public Company Accounting
Oversight Board (United States). However, we noted no deficiencies in the
Company's internal control over financial reporting and its operation, including
controls for safeguarding securities, that we consider to be material weaknesses
as defined above as of December 31, 2006. This report is intended solely for the
information and use of management and the Board of Directors of T. Rowe Price
Institutional Emerging Markets Bond Fund, Inc. and the Securities and Exchange
Commission and is not intended to be and should not be used by anyone other than
these specified parties.
PricewaterhouseCoopers LLP
Baltimore, Maryland
February 12,
2007
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