<PAGE>
THE       EMERGING       MARKETS       FLOATING       RATE       FUND       INC.
 
March 29, 1999
 
Dear Shareholder:
 
We are pleased to provide this annual report for The Emerging Markets Floating
Rate Fund Inc. ('Fund') as of February 26, 1999. Included are market commentary,
a statement of the Fund's investments and audited financial statements for the
year ended February 26, 1999.
 
The net asset value of the Fund decreased from $15.55 per share on February 27,
1998 to $10.21 on February 26, 1999. Dividends totaling $1.87 were paid during
the year. This total represents $1.59 per share from net investment income,
$0.17 per share from realized net short-term capital gains and $0.11 per share
from realized net long-term capital gains. Assuming reinvestment of these
dividends in additional shares of the Fund, the net asset value return for the
year ended February 26, 1999 was a negative 23.07%. In comparison, the JP Morgan
Emerging Markets Bond Index Plus ('EMBI+') returned a negative 18.51% during the
same period.
 
EMERGING MARKETS DEBT SECURITIES
 
During the year ended February 26, 1999, the emerging debt market experienced an
initial period of strength, extreme volatility mid-period, and a partial
recovery at the period's end. Much of the market's turmoil occurred in August,
when Russia's government defaulted on its domestic debt and devalued the ruble.
These developments caused a global flight to quality as investors reduced their
risk exposure worldwide. To illustrate August's volatility, the EMBI+ declined
by 28.74%, the largest monthly decline since the Index's inception. Moreover,
spreads over U.S. Treasuries widened to 1,563 basis points on August 27, ending
the month at 1,524.
 
Over the balance of 1998, the market staged a partial recovery due, in part, to
monetary easing by the U.S. Federal Reserve and U.S. Congressional approval of
funding for the International Monetary Fund ('IMF'). The agreement, as well as a
reduction of forced selling by non-dedicated investors, caused the market to
rise from September through the end of the year. In January of 1999, the market
traded down due to concerns over Brazil's devaluation of its local currency.
This led investors to again demand a higher risk premium from emerging markets
debt.
 
The sell-off in the emerging bond markets in 1998 was triggered by a variety of
events; some related to declines in fundamental creditworthiness and others
related to technical factors. Fundamentally, sovereign credit quality was
adversely affected by declining commodity prices throughout the year. This
resulted in lower fiscal revenues for many emerging market economies. In
addition, subsequent to the debt restructuring problems experienced by Asia in
1997, a significant decline in financing available to emerging market economies
developed, hindering many countries' abilities to finance short term
obligations. This problem peaked in the aftermath of the Russian domestic debt
default. Additional selling pressure developed as leveraged investors were
forced to liquidate holdings in the face of margin calls.
 
By the end of the period, despite the market's turmoil in August and worries
stemming from Brazil's devaluation of its currency, global contagion was not as
severe as might have been expected. This relative calm was due to a number of
positive world events, including the U.S. Federal Reserve's monetary easing,
Congressional funding for the IMF and a reduction in leverage dedicated to
credit risk investments.
 


<PAGE>

<PAGE>
THE       EMERGING       MARKETS       FLOATING       RATE       FUND       INC.
 
For the year ended February 26, 1999, out-performers in the emerging markets
included Poland, Panama, Morocco, Bulgaria, Argentina, Mexico and Peru.
Under-performers included Russia, Ecuador, Brazil and Venezuela. On February 26,
1999, the top country allocations (as a percentage of total investments) for the
Fund were as follows:
 
<TABLE>
<S>                         <C>
  Venezuela       22.2%       Mexico          6.0%
  Morocco         12.5%       Argentina       5.8%
  Bulgaria        10.6%       Ecuador         5.8%
  Ivory Coast      8.4%       Algeria         5.2%
  Peru             7.8%       Panama          5.1%
  Brazil           6.4%       Russia          4.2%
</TABLE>
 
The following is a brief description of each region's highlights over the past
twelve months.
 
LATIN AMERICA
 
Argentina. Argentina's record of sound economic management served it well during
the turbulent markets of 1998. During the period, a credit facility from the
World Bank and Inter-American Development Bank ('IADB') was secured, totaling
US$5.7 billion. Additionally, in October, the government reopened its global
bond maturing 2017, the first successful placement of emerging market debt in
the international capital market since July. The Argentine economy is vulnerable
to the downturn in the Brazilian economy. Our concern over the extent of the
impact of the Brazilian slowdown has led us to underweight Argentina.
 
Brazil. Brazil experienced a turbulent year culminating in the devaluation of
its currency in January. The country is in the process of stabilizing its
currency while addressing its fiscal balance. Improvement in the fiscal balance
combined with lowering of domestic interest rates are needed to reduce the high
level of domestic debt. The Brazilian economy has been in a recession for the
past few months. We expect that a reduction in domestic interest rates will help
the economy recover in 1999. We have remained underweight Brazil during this
period of turmoil and will be monitoring the Brazilian economy for signs of
recovery in 1999.
 
Ecuador. In May, Jamil Mahuad won Ecuador's presidential election on the first
ballot. Mahuad's ability to work with Congress to improve the fiscal deficit in
the aftermath of low oil prices and El Nino damage are the keys to improving
Ecuador's credit quality.
 
Mexico. Mexico remains a core position in our portfolio based upon its limited
need for new capital in 1999 as well as the country's reasonably comfortable
reserve levels (approximately US$30 billion). The country has successfully
tapped international capital markets in early 1999 and remains one of the
strongest credits in the emerging markets.
 
Peru. In March, Moody's raised Peru's sovereign debt ceiling to Ba3 from B2. The
move was based on the country's fiscal progress, which included macroeconomic
stabilization and high average rates of growth over the past several years. Its
commitment to a sound fiscal policy should allow Peru to successfully sustain a
period of low international commodity prices. For this reason, we maintained our
overweight position during the period.
 


<PAGE>

<PAGE>
THE       EMERGING       MARKETS       FLOATING       RATE       FUND       INC.
 
Venezuela. Venezuela's presidential race in November resulted in a decisive
victory for Hugo Chavez. Although elected as a populist, Chavez has made some
early appointments to his economic team which seem pro-market. In addition, he
has indicated his willingness to continue the dialogue with the IMF and the
current 'shadow program'. We are somewhat discouraged by Moody's downgrading
Venezuela during the period (from Ba2 to B1) and continued delays in the
privatization program. We remain overweighted in Venezuela, however, for several
reasons: Venezuela's capital needs in 1999 are relatively limited; Venezuela
retired some of its external debt with the proceeds of the 1997 oil boom; and
Venezuelan spreads are at historically wide levels versus other similarly rated
countries.
 
MIDDLE EAST/AFRICA
 
Ivory Coast. The Ivory Coast signed the long-awaited debt restructuring with the
London Club in March, which marked the completion of the Brady Bond program for
the country. Because of this positive development, we remain overweight in the
Ivory Coast.
 
Morocco. In March, both Moody's and Standard & Poor's assigned Morocco
first-time sovereign credit ratings: Moody's rated Morocco Ba1, while Standard &
Poor's assigned a rating of BB. According to the agencies, the ratings can be
attributed to several factors, including Morocco's ability to control its
current account deficit, as well as attract foreign investors. Morocco's
economic stability remains protected by stable inflation, healthy external
accounts and improved growth. Because of this, we are overweight in Morocco.
 
EASTERN EUROPE
 
Bulgaria. In December, Moody's upgraded Bulgaria's foreign currency rating to B2
from B3, citing improved credit quality due to the election of a reform-oriented
government and establishment of a currency board. Separately, the IMF approved
the fourth tranche of a US $510 million standby loan during the period. We
remain slightly overweight in Bulgaria, due to the country's limited debt
service requirements and its success in meeting all IMF fiscal targets in 1998.
 
Russia. Russia began the period as EMBI+'s top monthly performer for March and
April of 1998. Returns began to decline later in the period as the market became
concerned about the sustainability of the ruble. In August, an inability to
roll-over maturing domestic debt forced the government to restructure all
domestic debt and devalue the ruble. These developments triggered a major
sell-off in Russian dollar denominated bond prices during the month, with prices
declining as much as 80%. Additionally, the IMF placed Russia's agreed US$11.2
billion Extended Fund Facility ('EFF') program on hold. The government is
currently discussing a new program with the IMF. Progress in the medium term
looks likely, but until there are real signs that an effective economic program
is being implemented, we will remain cautious, and underweight, in Russia.
 


<PAGE>

<PAGE>
THE       EMERGING       MARKETS       FLOATING       RATE       FUND       INC.
 
In conclusion, market sentiment has improved markedly over the past few months.
While we expect the market to continue to trade with considerable volatility, we
believe the long term outlook for emerging markets debt is very positive.
 
                                 *     *     *
 
In a continuing effort to provide timely information concerning The Emerging
Markets Floating Rate Fund Inc., shareholders may call 1-888-777-0102 (toll
free), Monday through Friday from 8:00 am to 6:00 pm EST for the Fund's current
net asset value, market price and other information regarding the Fund's
portfolio holdings and allocations. For information concerning your Emerging
Markets Floating Rate Fund stock account, please call American Stock Transfer &
Trust Company at 1-800-937-5449 (1-718-921-8200 if you are calling from within
New York City).
 
We appreciate the confidence you have demonstrated in the past and hope to
continue to serve you in the future years.
 
Sincerely,
 
<TABLE>
<S>                                                    <C>
/s/ William D. Cvengros                                /s/ Heath B. McLendon
------------------------                               ------------------------
William D. Cvengros                                    Heath B. McLendon
Co-Chairman of the Board                               Co-Chairman of the Board
 
/s/ Peter J. Wilby
------------------------
Peter J. Wilby
Executive Vice President
</TABLE>



<PAGE>

<PAGE>
THE       EMERGING       MARKETS       FLOATING       RATE       FUND       INC.

Schedule of Investments
February 26, 1999
 
<TABLE>
<CAPTION>
   FACE
  AMOUNT                                        SECURITY                                         VALUE
---------------------------------------------------------------------------------------------------------
<C>           <S>                                                                             <C>
Sovereign Bonds  -- 82.3%
Argentina  -- 5.8%
$ 2,232,500   Republic of Argentina, FRB, Series L, 6.1875% due 3/31/05 (a)................   $ 1,829,311
                                                                                              -----------
Brazil  -- 6.4%
              Federal Republic of Brazil:
  2,592,000     Bearer, EI Bond, Series L, 6.125% due 4/15/06 (a)..........................     1,623,370
    700,000     Par Bond, Series Z-L, 5.500% due 4/15/24 (a)...............................       383,250
                                                                                              -----------
                                                                                                2,006,620
                                                                                              -----------
Bulgaria  -- 10.6%
              Republic of Bulgaria:
  3,400,000     FLIRB, Series A, 2.500% due 7/28/12 (a)....................................     2,048,500
  1,850,000     IAB, 5.875% due 7/28/11 (a)................................................     1,267,250
                                                                                              -----------
                                                                                                3,315,750
                                                                                              -----------
Ecuador  -- 5.8%
  6,618,071   Republic of Ecuador, Bearer, PDI Bond, 6.000% due 2/27/15 (a)(b).............     1,807,561
                                                                                              -----------
Ivory Coast  -- 8.4%
  7,900,000   Ivory Coast, PDI Bond, 2.000% due 3/29/18 (a)................................     2,646,500
                                                                                              -----------
Mexico  -- 6.0%
  1,790,000   United Mexican States, Global Bond, 11.500% due 5/15/26......................     1,881,827
                                                                                              -----------
Panama  -- 5.1%
  1,696,148   Republic of Panama, Bearer Bond, 6.19125% due 5/14/02 (a)....................     1,600,740
                                                                                              -----------
Peru  -- 7.8%
              Republic of Peru:
  1,000,000     Discount Bond, 6.500% due 3/8/27 (a).......................................       710,000
  3,300,000     FLIRB, 3.250% due 3/7/17 (a)...............................................     1,751,062
                                                                                              -----------
                                                                                                2,461,062
                                                                                              -----------
Russia  -- 4.2%
 12,103,503   Russia, IAN, 5.96875% due 12/15/15 (a)(c)....................................     1,316,256
                                                                                              -----------
Venezuela  -- 22.2%
              Republic of Venezuela:
  3,000,000     DCB, Series DL, 5.9375% due 12/18/07 (a)...................................     1,873,200
  8,297,580     FLIRB, Series A, 6.125% due 3/31/07 (a)....................................     5,095,232
                                                                                              -----------
                                                                                                6,968,432
                                                                                              -----------
 
              Total Sovereign Bonds (Cost  -- $32,895,201).................................    25,834,059
                                                                                              -----------
</TABLE>
 
--------------------------------------------------------------------------------
                       See notes to financial statements.
 
                                                                          PAGE 5
 


<PAGE>

<PAGE>
THE       EMERGING       MARKETS       FLOATING       RATE       FUND       INC.

Schedule of Investments (continued)
February 26, 1999
 
<TABLE>
<CAPTION>
   FACE
  AMOUNT                                        SECURITY                                         VALUE
---------------------------------------------------------------------------------------------------------
<C>           <S>                                                                             <C>
Loan Participations(d)  -- 17.7%
$ 4,705,884   Kingdom of Morocco, Tranche B, 6.0625% due 1/1/04
                (Morgan Stanley Emerging Markets Inc., Merrill Lynch)(a)...................   $ 3,923,531
              The People's Democratic Republic of Algeria (Chase Manhattan):
    954,546     Tranche A, 7.1875% due 3/4/00 (a)..........................................       801,818
  1,909,091     Tranche 1, 6.375% due 9/4/06 (a)...........................................       830,454
                                                                                              -----------
 
              Total Loan Participations (Cost  -- $6,502,650)..............................     5,555,803
                                                                                              -----------
 
              Total Investments  -- 100% (Cost  -- $39,397,851*)...........................   $31,389,862
                                                                                              -----------
                                                                                              -----------
---------------------------------------------------------------------------------------------------------
</TABLE>
 
(a) Rate shown reflects current rate on instrument with variable rate or step
    coupon rates.
 
(b) Payment-in-kind security for which part of the income earned is capitalized
    as additional principal.
 
(c) Pursuant to Rule 144A under the Securities Act of 1933, this security can
    only be sold to qualified institutional investors.
 
(d) Participation interests were acquired through the financial institutions
    indicated parenthetically.
 
 *  Aggregate cost for Federal income tax purposes is substantially the same.
 
Abbreviations used in schedule:
 
DCB    -- Debt Conversion Bond.
 
EI     -- Eligible Interest.
 
FLIRB  -- Front Loaded Interest Reduction Bond.
 
FRB    -- Floating Rate Bond.
 
IAB    -- Interest in Arrears Bond.
 
IAN    -- Interest in Arrears Notes.
 
PDI    -- Past Due Interest.
 
--------------------------------------------------------------------------------
                       See notes to financial statements.
 
PAGE 6



<PAGE>

<PAGE>
THE       EMERGING       MARKETS       FLOATING       RATE       FUND       INC.

Statement of Assets and Liabilities
February 26, 1999
 
<TABLE>
<S>                                                                                              <C>
ASSETS:
  Investments, at value (Cost -- $39,397,851).................................................   $31,389,862
  Cash........................................................................................        63,912
  Receivable for securities sold..............................................................    10,821,064
  Interest receivable.........................................................................     1,083,415
  Deferred organization cost..................................................................         1,525
                                                                                                 -----------
  TOTAL ASSETS................................................................................    43,359,778
                                                                                                 -----------
LIABILITIES:
  Management fees payable.....................................................................        33,984
  Accrued expenses............................................................................       163,297
                                                                                                 -----------
  TOTAL LIABILITIES...........................................................................       197,281
                                                                                                 -----------
  TOTAL NET ASSETS............................................................................   $43,162,497
                                                                                                 -----------
                                                                                                 -----------
NET ASSETS:
  Common stock ($0.001 par value, authorized 100,000,000 shares; 4,226,515 shares
    outstanding)..............................................................................   $     4,227
  Additional paid-in capital..................................................................    58,553,156
  Undistributed net investment income.........................................................       131,591
  Accumulated net realized loss on investments................................................    (7,518,488)
  Net unrealized depreciation on investments..................................................    (8,007,989)
                                                                                                 -----------
  TOTAL NET ASSETS............................................................................   $43,162,497
                                                                                                 -----------
                                                                                                 -----------
NET ASSET VALUE PER SHARE ($43,162,497 [div]  4,226,515 shares)...............................        $10.21
</TABLE>
 
--------------------------------------------------------------------------------
                       See notes to financial statements.
 
                                                                          PAGE 7
 


<PAGE>

<PAGE>
THE       EMERGING       MARKETS       FLOATING       RATE       FUND       INC.

Statement of Operations
For the Year Ended February 26, 1999
 
<TABLE>
<S>                                                                                              <C>
INCOME:
    Interest..................................................................................   $  7,645,935
                                                                                                 ------------
EXPENSES:
    Management fees (Note 2)..................................................................        578,555
    Audit fees................................................................................         52,826
    Legal fees................................................................................         37,870
    Shareholder reporting fees................................................................         32,946
    Directors' fees...........................................................................         32,512
    Transfer agent fees.......................................................................         31,115
    Custodian fees............................................................................         23,933
    Amortization of deferred organization costs (Note 1)......................................         22,131
    Other.....................................................................................         17,624
                                                                                                 ------------
    TOTAL EXPENSES............................................................................        829,512
                                                                                                 ------------
NET INVESTMENT INCOME.........................................................................      6,816,423
                                                                                                 ------------
NET REALIZED LOSS AND CHANGE IN UNREALIZED APPRECIATION
ON INVESTMENTS (NOTE 3):
    Net Realized Loss From Security Transactions (excluding short-term securities):
        Proceeds from sales...................................................................     78,628,220
        Cost of securities sold...............................................................     86,142,463
                                                                                                 ------------
    NET REALIZED LOSS.........................................................................     (7,514,243)
                                                                                                 ------------
    Change in Net Unrealized Appreciation (Depreciation) of Investments:
        Beginning of year.....................................................................      5,868,874
        End of year...........................................................................     (8,007,989)
                                                                                                 ------------
    INCREASE IN NET UNREALIZED DEPRECIATION...................................................    (13,876,863)
                                                                                                 ------------
NET DECREASE IN NET ASSETS FROM OPERATIONS....................................................   $(14,574,683)
                                                                                                 ------------
                                                                                                 ------------
</TABLE>
 
--------------------------------------------------------------------------------
                       See notes to financial statements.
 
PAGE 8
 


<PAGE>

<PAGE>
THE       EMERGING       MARKETS       FLOATING       RATE       FUND       INC.

Statements of Changes in Net Assets
For the Year Ended February 26, 1999 and the Year Ended February 27, 1998
 
<TABLE>
<CAPTION>
                                                                                     1999             1998
<S>                                                                              <C>              <C>
--------------------------------------------------------------------------------------------------------------
OPERATIONS:
    Net investment income.....................................................   $   6,816,423    $  6,309,864
    Net realized gain (loss)..................................................      (7,514,243)      2,745,383
    Increase in net unrealized depreciation...................................     (13,876,863)     (2,464,970)
                                                                                 -------------    ------------
    NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS.....................     (14,574,683)      6,590,277
                                                                                 -------------    ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
    Net investment income.....................................................      (6,684,832)     (6,380,527)
    Net realized gains........................................................      (1,170,913)     (5,047,163)
                                                                                 -------------    ------------
    DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS.................      (7,855,745)    (11,427,690)
                                                                                 -------------    ------------
CAPITAL SHARE TRANSACTIONS:
    Proceeds from shares issued in reinvestment of dividends
      (38,528 and 20,513 shares issued, respectively).........................         450,844         328,431
                                                                                 -------------    ------------
DECREASE IN NET ASSETS........................................................     (21,979,584)     (4,508,982)
NET ASSETS:
    Beginning of year.........................................................      65,142,081      69,651,063
                                                                                 -------------    ------------
    END OF YEAR (includes undistributed net investment income of
      $131,591 and $0, respectively)..........................................   $  43,162,497    $ 65,142,081
                                                                                 -------------    ------------
                                                                                 -------------    ------------
</TABLE>
 
--------------------------------------------------------------------------------
                       See notes to financial statements.
 
                                                                          PAGE 9



<PAGE>

<PAGE>
THE       EMERGING       MARKETS       FLOATING       RATE       FUND       INC.

Notes to Financial Statements
 
Note 1. Organization and Significant Accounting Policies
 
The Emerging Markets Floating Rate Fund Inc. ('Fund') was incorporated in
Maryland on January 21, 1994 and is registered as a non-diversified, closed-end,
management investment company under the Investment Company Act of 1940, as
amended. The Fund commenced operations on March 25, 1994. The Fund seeks to
maintain a high level of current income by investing primarily in a portfolio of
floating rate debt securities of emerging market sovereign and corporate
issuers. As a secondary objective, the Fund seeks capital appreciation.
 
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles
('GAAP'). The preparation of financial statements in accordance with GAAP
requires management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results may differ
from those estimates.
 
(a) SECURITIES VALUATION.   In valuing the Fund's assets, all securities for
which market quotations are readily available are valued (i) at the last sale
price prior to the time of determination if there were a sale on the date of
determination, (ii) at the mean between the last current bid and asked prices if
there were no sales price on such date and bid and asked quotations are
available, and (iii) at the bid price if there were no sales price on such date
and only bid quotations are available. Publicly traded foreign government debt
securities are typically traded internationally in the over-the-counter market,
and are valued at the mean between the last current bid and asked price at the
close of business of that market. However, when the spread between bid and asked
price exceeds five percent of the par value of the security, the security is
valued at the bid price. Securities may also be valued by independent pricing
services which use prices provided by market-makers or estimates of market
values obtained from yield data relating to instruments or securities with
similar characteristics. Short-term investments having a maturity of 60 days or
less are valued at amortized cost which approximates market value. Securities
for which reliable quotations are not readily available and all other securities
and assets are valued at fair value as determined in good faith by, or under
procedures established by, the Board of Directors.
 
(b) INVESTMENT TRANSACTIONS AND INVESTMENT INCOME.   Investment transactions are
recorded on the trade date. Interest income is accrued on a daily basis. Market
discount on securities purchased is accreted on an effective yield basis over
the life of the security. The Fund uses the specific identification method for
determining realized gain or loss on sale of investments.
 
(c) FEDERAL INCOME TAXES.   The Fund has complied and intends to continue to
comply with the requirements of the Internal Revenue Code of 1986, as amended,
applicable to regulated
 
PAGE 10
 


<PAGE>

<PAGE>
THE       EMERGING       MARKETS       FLOATING       RATE       FUND       INC.

Notes to Financial Statements (continued)
 
investment companies, and to distribute all of its income and capital gains, if
any, to its shareholders. Therefore, no federal income tax or excise tax
provision is required.
 
(d) DIVIDENDS AND DISTRIBUTIONS.   The Fund declares and pays dividends to
shareholders monthly from net investment income. Net realized gains, if any, in
excess of loss carryovers are expected to be distributed annually. Dividends and
distributions to shareholders are recorded on the ex-dividend date. The amount
of dividends and distributions from net investment income and net realized gains
are determined in accordance with federal income tax regulations, which may
differ from GAAP. These 'book/tax' differences are either considered temporary
or permanent in nature. To the extent these differences are permanent in nature,
such amounts are reclassified within the capital accounts based on their federal
tax basis treatment; temporary differences do not require reclassifications.
Dividends and distributions which exceed net investment income and net realized
capital gains for financial reporting purposes, but not for tax purposes are
reported as dividends in excess of net investment income or distributions in
excess of net realized capital gains.
 
(e) DEFERRED ORGANIZATION COSTS.   Organization costs amounting to $115,541 were
incurred in connection with the organization of the Fund. These costs have been
deferred and are being amortized ratably over a five-year period from
commencement of operations.
 
(f) REPURCHASE AGREEMENTS.   When entering into repurchase agreements, it is the
Fund's policy to take possession, through its custodian, of the underlying
collateral and to monitor its value at the time the arrangement is entered into
and during the term of the repurchase agreement to ensure that it equals or
exceeds the repurchase price. In the event of default of the obligation to
repurchase, the Fund has the right to liquidate the collateral and apply the
proceeds in satisfaction of the obligation. Under certain circumstances, in the
event of default or bankruptcy by the other party to the agreement, realization
and/or retention of the collateral may be subject to legal proceedings.
 
(g) YEAR END TAX RECLASSIFICATIONS.   The character of income and gains to be
distributed are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles.
 
Note 2. Management and Advisory Fees and Other Transactions
 
The Fund has entered into a management agreement with Value Advisors LLC
('Investment Manager'), a subsidiary of PIMCO Advisors L.P. ('PIMCO'), pursuant
to which the Investment Manager, among other things, supervises the Fund's
investment program and monitors the performance of the Fund's service providers.
 
                                                                         PAGE 11
 


<PAGE>

<PAGE>
THE       EMERGING       MARKETS       FLOATING       RATE       FUND       INC.

Notes to Financial Statements (continued)
 
The Investment Manager and the Fund have entered into an investment advisory and
administration agreement with Salomon Brothers Asset Management Inc ('Investment
Adviser'), a wholly-owned subsidiary of Salomon Smith Barney Holdings Inc.
('SSBH'), pursuant to which the Investment Adviser provides investment advisory
and administrative services to the Fund. The Investment Adviser is responsible
on a day-to-day basis for the management of the Fund's portfolio in accordance
with the Fund's investment objectives and policies and for making decisions to
buy, sell, or hold particular securities and is responsible for day-to-day
administration of the Fund.
 
The Fund pays the Investment Manager a monthly fee at an annual rate of 1.10% of
the Fund's average weekly net assets for its services, out of which the
Investment Manager pays the Investment Adviser a monthly fee at an annual rate
of 0.65% of the Fund's average weekly net assets for its services.
 
At February 26, 1999, the Investment Manager and the Investment Adviser owned
3,567 and 4,230 shares, respectively, of the Fund.
 
Certain officers and/or directors of the Fund are also officers and/or directors
of the Investment Manager or the Investment Adviser.
 
Note 3. Portfolio Activity and Federal Income Tax Status
 
For the year ended February 26, 1999, the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding
short-term securities) were as follows:
 
<TABLE>
<S>                                                                                             <C>
Purchases....................................................................................   $81,845,018
                                                                                                -----------
                                                                                                -----------
Sales........................................................................................   $78,628,220
                                                                                                -----------
                                                                                                -----------
</TABLE>
 
At February 26, 1999, the aggregate gross unrealized appreciation and
depreciation of investments for Federal income tax purposes were substantially
as follows:
 
<TABLE>
<S>                                                                                             <C>
Gross unrealized appreciation................................................................   $   483,038
Gross unrealized depreciation................................................................    (8,491,027)
                                                                                                -----------
Net unrealized depreciation..................................................................   $(8,007,989)
                                                                                                -----------
                                                                                                -----------
</TABLE>
 
Note 4. Loan Participations
 
The Fund invests in fixed and floating rate loans arranged through private
negotiations between a foreign sovereign entity and one or more financial
institutions. The Fund's investment in any such loan may be in the form of a
participation in the loan.
 
PAGE 12
 


<PAGE>

<PAGE>
THE       EMERGING       MARKETS       FLOATING       RATE       FUND       INC.

Notes to Financial Statements (continued)
 
In connection with purchasing loan 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. As a result, the Fund will assume the
credit risk of both the borrower and the lender that is selling the
participation. 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. The Fund
may have difficulty disposing of participations because the market for such
instruments is not highly liquid.
 
At February 26, 1999, the Fund held loan participations with a total cost of
$6,502,650.
 
Note 5. Credit and Market Risk
 
The yields on emerging market debt obligations and high yield corporate debt
obligations reflect, among other things, perceived credit risk. The Fund's
investment in securities rated below investment grade typically involve risks
not associated with higher rated securities including, among others, overall
greater risk of 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. At
February 26, 1999, the Fund has a concentration of credit risk in sovereign debt
of emerging market countries.
 
Note 6. Dividends Subsequent to February 26, 1999
 
Subsequent to February 26, 1999, the Board of Directors of the Fund declared
dividends of $0.1325 per common share payable March 26, 1999, April 23, 1999 and
May 28, 1999 to shareholders of record on March 16, 1999, April 13, 1999 and
May 18, 1999, respectively.
 
Note 7. Capital Loss Carryforward
 
At February 26, 1999, the Fund had, for Federal income tax purposes,
approximately $6,104,000 of capital loss carryforwards, expiring on February 27,
2007, available to offset future capital gains. To the extent that these
carryforward losses are used to offset capital gains, it is probable that the
gains so offset will not be distributed.
 
                                                                         PAGE 13



<PAGE>

<PAGE>
THE       EMERGING       MARKETS       FLOATING       RATE       FUND       INC.

Financial Highlights
Data for a share of common stock outstanding throughout each year shown below:
 
<TABLE>
<CAPTION>
                                                   FEB. 26,      FEB. 27,      FEB. 28,      FEB. 29,      FEB. 28,
                                                     1999          1998          1997          1996        1995(1)
-------------------------------------------------------------------------------------------------------------------
<S>                                                <C>           <C>           <C>           <C>           <C>
 
NET ASSET VALUE, BEGINNING OF YEAR..............   $ 15.55       $ 16.71       $ 13.66       $ 11.92       $ 14.02
                                                   --------      --------      --------      --------      --------
INCOME (LOSS) FROM OPERATIONS:
  Net investment income.........................      1.62          1.51          1.56          1.66          1.24
  Net realized and unrealized gain (loss).......     (5.09 )        0.07          3.10          1.75         (1.98 )
                                                   --------      --------      --------      --------      --------
Total Income (Loss) From Operations.............     (3.47 )        1.58          4.66          3.41         (0.74 )
                                                   --------      --------      --------      --------      --------
LESS DISTRIBUTIONS FROM:
  Net investment income.........................     (1.59 )       (1.53 )       (1.61 )       (1.67 )       (1.19 )
  Net realized gains............................     (0.28 )       (1.21 )          --            --            --
                                                   --------      --------      --------      --------      --------
 
Total Distributions.............................     (1.87 )       (2.74 )       (1.61 )       (1.67 )       (1.19 )
                                                   --------      --------      --------      --------      --------
 
OFFERING COSTS ON ISSUANCE OF COMMON STOCK......        --            --            --            --         (0.17 )
                                                   --------      --------      --------      --------      --------
NET ASSET VALUE, END OF YEAR....................   $ 10.21       $ 15.55       $ 16.71       $ 13.66       $ 11.92
                                                   --------      --------      --------      --------      --------
                                                   --------      --------      --------      --------      --------
 
MARKET VALUE, END OF YEAR.......................   $12.1875      $ 16.50       $17.125       $ 13.75       $ 11.75
                                                   --------      --------      --------      --------      --------
                                                   --------      --------      --------      --------      --------
 
TOTAL RETURN(2).................................    (13.64 )%      14.04 %       38.28 %       33.31 %       (8.17 )%*
NET ASSETS, END OF YEAR (000S)..................   $43,162       $65,142       $69,651       $56,631       $49,447
RATIOS TO AVERAGE NET ASSETS:
  Expenses......................................      1.58 %        1.49 %        1.52 %        1.65 %        1.73 %'D'
  Net investment income.........................     12.95 %        9.19 %       10.28 %       12.99 %       10.00 %'D'
PORTFOLIO TURNOVER RATE.........................       163 %         214 %         120 %          70 %          61 %
-------------------------------------------------------------------------------------------------------------------
</TABLE>
 
(1) For the period March 25, 1994 (commencement of investment operations)
through February 28, 1995.
 
(2) Total return is calculated assuming a purchase of common stock at the
    current market price on the first day and a sale at the current market price
    on the last day of each period reported. For purposes of this calculation,
    dividends are assumed to be reinvested at prices obtained under the Fund's
    dividend reinvestment plan and the broker commission paid to purchase or
    sell a share is excluded.
 
 *   Return calculated based on beginning of period price of $14.02 (initial
     offering price of $15.00 less sales load of $0.98) and end of period
     market value of $11.75 per share. This calculation is not
     annualized.
 
'D'   Annualized.

 
PAGE 14
 


<PAGE>

<PAGE>
THE       EMERGING       MARKETS       FLOATING       RATE       FUND       INC.

Report of Independent Accountants
 
To the Board of Directors and Shareholders of
The Emerging Markets Floating Rate Fund Inc.
 
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of The Emerging Markets Floating Rate
Fund Inc. (the 'Fund') at February 26, 1999, the results of its operations for
the year then ended, the changes in its net assets for each of the two years in
the period then ended and the financial highlights for each of the four years in
the period then ended and for the period March 25, 1994 (commencement of
investment operations) through February 28, 1995, in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as 'financial statements') are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at February 26, 1999 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.
 
PricewaterhouseCoopers LLP
New York, New York
April 16, 1999
 
                                                                         PAGE 15
 


<PAGE>

<PAGE>
THE       EMERGING       MARKETS       FLOATING       RATE       FUND       INC.

Selected Quarterly Financial Information (unaudited)
 
<TABLE>
<CAPTION>
                                                                                              NET REALIZED &
                                                                     NET INVESTMENT             UNREALIZED
                                                                         INCOME                 GAIN (LOSS)
                                                                 ----------------------    ---------------------
QUARTERS ENDED(A)                                                TOTAL      PER SHARE       TOTAL      PER SHARE
----------------------------------------------------------------------------------------------------------------
<S>                                                              <C>       <C>             <C>         <C>
 
May 31, 1996..................................................   $1,760       $ 0.42       $  3,725     $  0.90
August 31, 1996...............................................    1,646         0.40          1,768        0.43
November 30, 1996.............................................    1,597         0.38          4,663        1.12
February 28, 1997.............................................    1,508         0.36          2,708        0.65
May 31, 1997..................................................    1,581         0.38          1,184        0.28
August 31, 1997...............................................    1,627         0.39          1,444        0.35
November 30, 1997.............................................    1,558         0.37         (4,210)      (1.01)
February 27, 1998.............................................    1,544         0.37          1,862        0.45
May 29, 1998..................................................    1,638         0.39         (2,338)      (0.56)
August 31, 1998...............................................    1,761         0.42        (22,937)      (5.45)
November 30, 1998.............................................    1,723         0.41          7,769        1.85
February 26, 1999.............................................    1,694         0.40         (3,885)      (0.93)
----------------------------------------------------------------------------------------------------------------
</TABLE>
 
 (a) Totals expressed in thousands of dollars except per share amounts.
 
------------------------------------
Tax Information (unaudited)
 
For Federal tax purposes the Fund hereby designates for the fiscal year ended
February 26, 1999:
 
      Total long-term capital gain distributions paid of $461,151.
 
PAGE 16
 


<PAGE>

<PAGE>
THE       EMERGING       MARKETS       FLOATING       RATE       FUND       INC.

Other Information (unaudited)
 
Year 2000. The investment management services provided to the Fund by the
Investment Adviser depend in large part on the smooth functioning of its
computer systems. Many computer software systems in use today cannot recognize
the year 2000, but revert to 1900 or some other date, due to the manner in which
the dates were encoded or calculated. The capability of these systems to
recognize the year 2000 could have a negative impact on the Investment Adviser's
provision of investment advisory services, including handling of securities
trades, pricing and account services. The Investment Adviser has advised the
Fund that it has been reviewing all of their computer systems and actively
working on necessary changes to its systems to prepare for the year 2000 and
expects that given the extensive testing which it is undertaking, its systems
will be year 2000 compliant before such date. In addition, the Investment
Adviser has been advised by certain of the Fund's service providers that they
are also in the process of modifying their systems with the same goal. There
can, however, be no assurance that the Investment Adviser or any other service
provider will be successful in achieving year 2000 compliance, or that
interaction with other non-complying computer systems will not impair services
to the Fund at that time.
 
                                                                         PAGE 17



<PAGE>

<PAGE>
THE       EMERGING       MARKETS       FLOATING       RATE       FUND       INC.

PURSUANT TO CERTAIN RULES OF THE SECURITIES AND EXCHANGE COMMISSION, THE
FOLLOWING ADDITIONAL DISCLOSURE IS PROVIDED.
 
--------------------------------------------------------------------------------
Form of Terms and Conditions of Amended and Restated Dividend Reinvestment
and Cash Purchase Plan
 
1. Each shareholder initially purchasing shares of common stock ('Shares') of
The Emerging Markets Floating Rate Fund Inc. ('Fund') on or after September 6,
1996 will be deemed to have elected to be a participant in the Amended and
Restated Dividend Reinvestment and Cash Purchase Plan ('Plan'), unless the
shareholder specifically elects in writing (addressed to the Agent at the
address below or to any nominee who holds Shares for the shareholder in its
name) to receive all income dividends and distributions of capital gains in
cash, paid by check, mailed directly to the record holder by or under the
direction of American Stock Transfer & Trust Company as the Fund's
dividend-paying agent ('Agent'). A shareholder whose Shares are held in the name
of a broker or nominee who does not provide an automatic reinvestment service
may be required to take such Shares out of 'street name' and register such
Shares in the shareholder's name in order to participate, otherwise dividends
and distributions will be paid in cash to such shareholder by the broker or
nominee. Each participant in the Plan is referred to herein as a 'Participant.'
The Agent will act as Agent for each Participant, and will open accounts for
each Participant under the Plan in the same name as their Shares are registered.
 
2. Unless the Fund declares a dividend or distribution payable only in the form
of cash, the Agent will apply all dividends and distributions in the manner set
forth below.
 
3. If, on the determination date, the market price per Share equals or exceeds
the net asset value per Share on that date (such condition, a 'market premium'),
the Agent will receive the dividend or distribution in newly issued Shares of
the Fund on behalf of Participants. If, on the determination date, the net asset
value per Share exceeds the market price per Share (such condition, a 'market
discount'), the Agent will purchase Shares in the open-market. The determination
date will be the fourth New York Stock Exchange trading day (a New York Stock
Exchange trading day being referred to herein as a 'Trading Day') preceding the
payment date for the dividend or distribution. For purposes herein, 'market
price' will mean the average of the highest and lowest prices at which the
Shares sell on the New York Stock Exchange on the particular date, or if there
is no sale on that date, the average of the closing bid and asked quotations.
 
4. Purchases made by the Agent will be made as soon as practicable commencing on
the Trading Day following the determination date and terminating no later than
30 days after the dividend or distribution payment date except where temporary
curtailment or suspension of purchase is necessary to comply with applicable
provisions of federal securities law; provided, however, that such purchases
will, in any event, terminate on the Trading Day prior to the 'ex-dividend' date
next succeeding the dividend or distribution payment date.
 
PAGE 18
 


<PAGE>

<PAGE>
THE       EMERGING       MARKETS       FLOATING       RATE       FUND       INC.
 
5. If (i) the Agent has not invested the full dividend amount in open-market
purchases by the date specified in paragraph 4 above as the date on which such
purchases must terminate or (ii) a market discount shifts to a market premium
during the purchase period, then the Agent will cease making open-market
purchases and will receive the uninvested portion of the dividend amount in
newly issued Shares (x) in the case of (i) above, at the close of business on
the date the Agent is required to terminate making open-market purchases as
specified in paragraph 4 above or (y) in the case of (ii) above, at the close of
business on the date such shift occurs; but in no event prior to the payment
date for the dividend or distribution.
 
6. In the event that all or part of a dividend or distribution amount is to be
paid in newly issued Shares, such Shares will be issued to Participants in
accordance with the following formula: (i) if, on the valuation date, the net
asset value per share is less than or equal to the market price per Share, then
the newly issued Shares will be valued at net asset value per Share on the
valuation date; provided, however, that if the net asset value is less than 95%
of the market price on the valuation date, then such Shares will be issued at
95% of the market price and (ii) if, on the valuation date, the net asset value
per share is greater than the market price per Share, then the newly issued
Shares will be issued at the market price on the valuation date. The valuation
date will be the dividend or distribution payment date, except that with respect
to Shares issued pursuant to paragraph 5 above the valuation date will be the
date such Shares are issued. If a date that would otherwise be a valuation date
is not a Trading Day, the valuation date will be the next preceding Trading Day.
 
7. Participants have the option of making additional cash payments to the Agent,
monthly, in a minimum amount of $250, for investment in Shares. The Agent will
use all such funds received from Participants to purchase Shares in the open
market on or about the first business day of each month. To avoid unnecessary
cash accumulations, and also to allow ample time for receipt and processing by
the Agent, Participants should send in voluntary cash payments to be received by
the Agent approximately 10 days before an applicable purchase date specified
above. A Participant may withdraw a voluntary cash payment by written notice, if
the notice is received by the Agent not less than 48 hours before such payment
is to be invested.
 
8. Purchases by the Agent pursuant to paragraphs 4 and 7 above may be made on
any securities exchange on which the Shares of the Fund are traded, in the
over-the-counter market or in negotiated transactions, and may be on such terms
as to price, delivery and otherwise as the Agent shall determine. Funds held by
the Agent uninvested will not bear interest, and it is understood that, in any
event, the Agent shall have no liability in connection with any inability to
purchase Shares within the time periods herein provided, or with the timing of
any purchases effected. The Agent shall have no responsibility as to the value
of the Shares acquired for the Participant's account. The Agent may commingle
amounts of all Participants to be used for open-market purchases of Shares and
the price per Share allocable to each Participant in connection with such
purchases shall be the average price (including brokerage commissions) of all
Shares purchased by the Agent.
 
9. The Agent will maintain all Participants' accounts in the Plan and will
furnish written confirmations of all transactions in each account, including
information needed by Participants for personal and tax records. The Agent will
hold Shares acquired pursuant to the Plan in
 
                                                                         PAGE 19
 


<PAGE>

<PAGE>
THE       EMERGING       MARKETS       FLOATING       RATE       FUND       INC.
 
noncertificated form in the Participant's name or that of its nominee, and each
Participant's proxy will include those Shares purchased pursuant to the Plan.
The Agent will forward to Participants any proxy solicitation material and will
vote any Shares so held for Participants only in accordance with the proxy
returned by Participants to the Fund. Upon written request, the Agent will
deliver to Participants, without charge, a certificate or certificates for the
full Shares.
 
10. The Agent will confirm to Participants each acquisition made for their
respective accounts as soon as practicable but not later than 60 days after the
date thereof. Although Participants may from time to time have an undivided
fractional interest (computed to three decimal places) in a Share of the Fund,
no certificates for fractional shares will be issued. Dividends and
distributions on fractional shares will be credited to each Participant's
account. In the event of termination of a Participant's account under Plan, the
Agent will adjust for any such undivided fractional interest in cash at the
market value of the Fund's Shares at the time of termination less the pro rata
expense of any sale required to make such an adjustment.
 
11. Any share dividends or split shares distributed by the Fund on Shares held
by the Agent for Participants will be credited to their respective accounts. In
the event that the Fund makes available to Participants rights to purchase
additional Shares or other securities, the Shares held for Participants under
the Plan will be added to other Shares held by the Participants in calculating
the number of rights to be issued to Participants.
 
12. The Agent's service fee for handling capital gains distributions or income
dividends will be paid by the Fund. Participants will be charged a pro rata
share of brokerage commissions on all open-market purchases.
 
13. Participants may terminate their accounts under the Plan by notifying the
Agent in writing. Such termination will be effective immediately if notice is
received by the Agent not less than 10 days prior to any dividend or
distribution record date; otherwise such termination will be effective on the
first Trading Day after the payment date for such dividend or distribution with
respect to any subsequent dividend or distribution. The Plan may be amended or
terminated by the Fund as applied to any voluntary cash payments made and any
income dividend or capital gains distribution paid subsequent to written notice
of the change or termination sent to Participants at least 30 days prior to the
record date for the income dividend or capital gains distribution. The Plan may
be amended or terminated by the Agent, with the Fund's prior written consent, on
at least 30 days' written notice to Participants. Notwithstanding the preceding
two sentences, the Agent or the Fund may amend or supplement the Plan at any
time or times when necessary or appropriate to comply with applicable law or
rules or policies of the Securities and Exchange Commission or any other
regulatory authority. Upon any termination, the Agent will cause a certificate
or certificates for the full Shares held by each Participant under the Plan and
cash adjustment for any fraction to be delivered to each Participant without
charge. If the Participant elects by notice to the Agent in writing in advance
of such termination to have the Agent sell part or all of a Participant's Shares
and remit the proceeds to Participant, the Agent is authorized to deduct a
brokerage commission for this transaction from the proceeds.
 
14. Any amendment or supplement shall be deemed to be accepted by each
Participant unless, prior to the effective date thereof, the Agent receives
written notice of the termination of the Participant's account under the Plan.
Any such amendment may include an appointment by the
 
PAGE 20
 


<PAGE>

<PAGE>
THE       EMERGING       MARKETS       FLOATING       RATE       FUND       INC.
 
Agent in its place and stead of a successor Agent under these terms and
conditions, with full power and authority to perform all or any of the acts to
be performed by the Agent under these terms and conditions. Upon any such
appointment of an Agent for the purpose of receiving dividends and
distributions, the Fund will be authorized to pay to such successor Agent, for
each Participant's account, all dividends and distributions payable on Shares of
the Fund held in each Participant's name or under the Plan for retention or
application by such successor Agent as provided in these terms and conditions.
 
15. In the case of Participants, such as banks, broker-dealers or other
nominees, which hold Shares for others who are beneficial owners ('Nominee
Holders'), the Agent will administer the Plan on the basis of the number of
Shares certified from time to time by each Nominee Holder as representing the
total amount registered in the Nominee Holder's name and held for the account of
beneficial owners who are to participate in the Plan.
 
16. The Agent shall at all times act in good faith and use its best efforts
within reasonable limits to insure the accuracy of all services performed under
this Agreement and to comply with applicable law, but assumes no responsibility
and shall not be liable for loss or damage due to errors unless such error is
caused by its negligence, bad faith, or willful misconduct or that of its
employees.
 
17. All correspondence concerning the Plan should be directed to the Agent at 40
Wall Street, 46th Floor, New York, New York 10005.
 
                                                                         PAGE 21



<PAGE>

<PAGE>
THE       EMERGING       MARKETS       FLOATING       RATE       FUND       INC.
 

Directors
 
CHARLES F. BARBER
     Consultant; formerly Chairman,
     ASARCO Incorporated
 
WILLIAM D. CVENGROS
     Co-Chairman of the Board;
     Chief Executive Officer and
     President of Value Advisors LLC and
     President of PIMCO Advisors L.P.
 
LESLIE H. GELB
     President, The Council on
     Foreign Relations
 
HEATH B. MCLENDON
     Co-Chairman of the Board;
     Managing Director, Salomon Smith Barney Inc.; President and Director,
     Mutual
     Management Corp. and Travelers
     Investment Advisers, Inc.;
     Chairman, Smith Barney Strategy
     Advisors Inc.
 
RIORDAN ROETT
     Professor and Director,
     Latin American Studies Program,
     Paul H. Nitze School of Advanced
     International Studies,
     Johns Hopkins University
 
JESWALD W. SALACUSE
     Henry J. Braker Professor of Commercial
     Law, and formerly Dean, The Fletcher
     School of Law & Diplomacy
     Tufts University
 

Officers
 
WILLIAM D. CVENGROS
     Co-Chairman of the Board
 
HEATH B. MCLENDON
     Co-Chairman of the Board
 
STEPHEN J. TREADWAY
     President
 
LEWIS E. DAIDONE
     Executive Vice President and Treasurer
 
THOMAS K. FLANAGAN
     Executive Vice President
 
NEWTON B. SCHOTT
     Executive Vice President
 
PETER J. WILBY
     Executive Vice President
 
ANTHONY PACE
     Assistant Controller
 
CHRISTINA T. SYDOR
     Secretary
 

The Emerging Markets
Floating Rate Fund Inc.
     7 World Trade Center
     New York, New York 10048
 
       TELEPHONE
       1-888-777-0102
 
INVESTMENT MANAGER
     Value Advisors LLC
     800 Newport Center Drive
     Suite 100
     Newport Beach, California 92660
 
INVESTMENT ADVISER
     Salomon Brothers Asset Management Inc
     7 World Trade Center
     New York, New York 10048
 
CUSTODIAN
     The Chase Manhattan Bank
     Four Metrotech Center
     Brooklyn, New York 11245
 
DIVIDEND DISBURSING AND TRANSFER AGENT
     American Stock Transfer & Trust Company
     40 Wall Street
     New York, New York 10005
 
INDEPENDENT ACCOUNTANTS
     PricewaterhouseCoopers LLP
     1177 Avenue of the Americas
     New York, New York 10036
 
LEGAL COUNSEL
     Simpson Thacher & Bartlett
     425 Lexington Avenue
     New York, New York 10017
 
NEW YORK STOCK EXCHANGE SYMBOL
     EFL



 <PAGE>

<PAGE>



THE EMERGING MARKETS
FLOATING RATE FUND INC.




ANNUAL REPORT
FEBRUARY 26, 1999



<TABLE>
<S>                                                               <C>
AMERICAN STOCK TRANSFER & TRUST COMPANY                         BULK RATE
40 WALL STREET                                                 U.S. POSTAGE
NEW YORK, NEW YORK 10005                                           PAID
                                                             STATEN ISLAND, NY
                                                                 PERMIT NO.
                                                                    169

</TABLE>

                     STATEMENT OF DIFFERENCES
                     ------------------------

The dagger symbol shall be expressed as...................................   'D'
The division sign shall be expressed as................................... [div]