# EDGAR Filing Document

**Accession Number:** 0001388141
**File Stem:** 0001104659-25-062426
**Filing Date:** 2025-6
**Character Count:** 222010
**Document Hash:** 17964c5adfcfa56f8e7aee49c49129fa
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-062426.hdr.sgml**: 20250625

**ACCESSION NUMBER**: 0001104659-25-062426

**CONFORMED SUBMISSION TYPE**: N-CSRS

**PUBLIC DOCUMENT COUNT**: 7

**CONFORMED PERIOD OF REPORT**: 20250430

**FILED AS OF DATE**: 20250625

**DATE AS OF CHANGE**: 20250625

**EFFECTIVENESS DATE**: 20250625

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.
- **CENTRAL INDEX KEY:** 0001388141

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-CSRS
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-22011
- **FILM NUMBER:** 251071293

**BUSINESS ADDRESS:**
- **STREET 1:** 1585 BROADWAY
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10036
- **BUSINESS PHONE:** 800-869-6397

**MAIL ADDRESS:**
- **STREET 1:** 1585 BROADWAY
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10036

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549**

**Form N-CSR**

**CERTIFIED SHAREHOLDER REPORT OF REGISTERED** 

**MANAGEMENT INVESTMENT COMPANIES**

Investment Company Act File Number: <u>811-22011</u>

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

(Exact Name of Registrant as Specified in Charter)

<u>1585 Broadway, New York, New York 10036</u>

(Address of Principal Executive Offices)

John H. Gernon

<u>1585 Broadway, New York, New York 10036</u>

(Name and Address of Agent for Services)

<u>(212) 672-1886</u>

(Registrant's Telephone Number)

<u>October 31,</u>

Date of Fiscal Year End

<u>April 30, 2025</u>

Date of Reporting Period

**Item 1. Reports to Stockholders**

(a) ![](j25146592_aa001.jpg)

Morgan Stanley Investment Management Inc. <br>Adviser

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.<br>NYSE: EDD

Semi-Annual Report

April 30, 2025

![](j25146592_aa002.jpg)

![](j25146592_aa003.jpg)

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

**Table of Contents**

---

| | |
|:---|:---|
| Performance Summary | 3 |
| Portfolio of Investments | 4 |
| Statement of Assets and Liabilities | 24 |
| Statement of Operations | 25 |
| Statements of Changes in Net Assets | 26 |
| Statement of Cash Flows | 27 |
| Financial Highlights | 28 |
| Notes to Financial Statements | 29 |
| Portfolio Management | 44 |
| Investment Policy | 45 |
| Dividend Reinvestment Plan | 58 |
| Important Notices | 59 |
| U.S. Customer Privacy Notice | 60 |
| Directors and Officers Information | Back Cover |

---

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Performance Summary

**Average Annual Total Returns as of April 30, 2025<sup>(1)</sup>**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **6 Month\*** | **One Year** | **Five Years** | **Ten Years** |
| NAV | 8.11% | 13.31% | 3.93% | 1.00% |
| Market price | 11.00% | 21.13% | 6.16% | 1.51% |
| J.P. Morgan Government Bond Index — <br>Emerging Markets Global Diversified Index<sup>(2)</sup> | 5.02% | 9.75% | 2.16% | 1.30% |

---

*\* Cumulative return*

*Performance data quoted on the table represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested at prices obtained under the Fund's dividend reinvestment plan. For the most recent month-end performance figures, please visit www.morganstanley.com/im/closedendfundsshareholderreports. Investment returns and principal value will fluctuate so that Fund shares, when sold, may be worth more or less than their original cost. The table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the sale of fund shares. Total return, market price, NAV, market price distribution rate, and NAV distribution rate will fluctuate with changes in market conditions. The Fund's total returns are based upon the market value and net asset value on the last business day of the period.*

---

| | |
|:---|:---|
| **Distributions** | **Distributions** |
| Total Distributions per share for the period | 0.32 |
| Distribution Rate at NAV<sup>(3)</sup> | 12.14% |
| Distribution Rate at Market Price<sup>(3)</sup> | 13.28% |
| % Premium/(Discount) to NAV<sup>(4)</sup> | (8.54)% |

---

*(1) All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.*

*(2) The J.P. Morgan Government Bond Index — Emerging Markets Global Diversified Index tracks local currency government bonds issued by emerging markets. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.*

*(3) The Distribution Rate is based on the Fund's last regular distribution per share in the period (annualized) divided by the Fund's NAV or market price at the end of the period. The Fund's distributions may be comprised of amounts characterized for federal income tax purposes as qualified and non-qualified ordinary dividends, capital gains and non-dividend distributions, also known as return of capital. The Fund will determine the federal income tax character of distributions paid to a shareholder after the end of the calendar year. The Fund's distributions are determined by the investment adviser based on its current assessment of the Fund's long-term return potential. Fund distributions may be affected by numerous factors including changes in Fund performance, the cost of financing for leverage, portfolio holdings, realized and projected returns, and other factors. As portfolio and market conditions change, the rateof distributions paid by the Fund could change.*

*(4) The shares of the Fund often trade at a discount or premium to their net asset value. The discount or premium may vary over time and may be higher or lower than what is quoted in this report.*

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Portfolio of Investments

***(Showing Percentage of Total Value of Investments)***

---

| | | |
|:---|:---|:---|
| | **Face<br>Amount<br>(000)** | **Value<br>(000)** |
| **FIXED INCOME SECURITIES (88.9%)** | **FIXED INCOME SECURITIES (88.9%)** | **FIXED INCOME SECURITIES (88.9%)** |
| **Albania (3.0%)** | **Albania (3.0%)** | **Albania (3.0%)** |
| **Sovereign (3.0%)** | **Sovereign (3.0%)** | **Sovereign (3.0%)** |
| Albanian Government Bond,<br>3.70%, 1/10/28 | 1800 | $21 |
| 3.90%, 1/22/30 | 75900 | 900 |
| 4.05%, 2/7/32 | 43200 | 510 |
| 4.30%, 7/10/27 | 114500 | 1353 |
| 4.70%, 2/23/27 | 37000 | 437 |
| 4.95%, 7/22/29 | 353300 | 4354 |
| 5.25%, 1/26/29 - 1/23/35 | 254100 | 3151 |
| 5.59%, 2/19/40 | 6100 | 73 |
| 6.13%, 7/25/34 | 17100 | 218 |
|  |  | 11017 |
| **Angola (0.3%)** | **Angola (0.3%)** | **Angola (0.3%)** |
| **Sovereign (0.3%)** | **Sovereign (0.3%)** | **Sovereign (0.3%)** |
| Angolan Government <br>International Bond,<br>9.13%, 11/26/49 | $1183 | 823 |
| 9.38%, 5/8/48 | 649 | 458 |
|  |  | 1281 |
| **Argentina (0.5%)** | **Argentina (0.5%)** | **Argentina (0.5%)** |
| **Sovereign (0.5%)** | **Sovereign (0.5%)** | **Sovereign (0.5%)** |
| Argentina Treasury <br>Bond BONCER,<br>0.00%, 3/31/27 - 12/15/27 | 764289 | 920 |
| Bono Del Tesoro Nacional <br>Capitalizable en Pesos,<br>2.15%, 6/30/26 | 212300 | 182 |
| 2.60%, 2/13/26 | 743072 | 709 |
|  |  | 1811 |
| **Armenia (3.0%)** | **Armenia (3.0%)** | **Armenia (3.0%)** |
| **Sovereign (3.0%)** | **Sovereign (3.0%)** | **Sovereign (3.0%)** |
| Republic of Armenia <br>Treasury Bond,<br>9.00%, 4/29/26 | 99880 | 258 |
| 9.25%, 4/29/28 | 786700 | 2014 |
| 9.60%, 10/29/33 | 2602928 | 6659 |
| 9.75%, 10/29/50 - 10/29/52 | 757312 | 1939 |
|  |  | 10870 |

---

---

| | | |
|:---|:---|:---|
| | **Face<br>Amount<br>(000)** | **Value<br>(000)** |
| **Bahamas (0.5%)** | **Bahamas (0.5%)** | **Bahamas (0.5%)** |
| **Sovereign (0.5%)** | **Sovereign (0.5%)** | **Sovereign (0.5%)** |
| Bahamas Government <br>International Bond,<br>6.63%, 5/15/33 | $719 | $633 |
| 8.95%, 10/15/32 | 1174 | 1186 |
|  |  | 1819 |
| **Barbados (0.2%)** | **Barbados (0.2%)** | **Barbados (0.2%)** |
| **Sovereign (0.2%)** | **Sovereign (0.2%)** | **Sovereign (0.2%)** |
| Barbados Government <br>International Bond,<br>6.50%, 10/1/29 | 929 | 884 |
| **Benin (0.6%)** | **Benin (0.6%)** | **Benin (0.6%)** |
| **Sovereign (0.6%)** | **Sovereign (0.6%)** | **Sovereign (0.6%)** |
| Benin Government <br>International Bond,<br>4.88%, 1/19/32 | 223 | 222 |
| 6.88%, 1/19/52 | 1077 | 959 |
| 7.96%, 2/13/38 | $1100 | 992 |
| 8.38%, 1/23/41 | 200 | 183 |
|  |  | 2356 |
| **Cameroon (0.2%)** | **Cameroon (0.2%)** | **Cameroon (0.2%)** |
| **Sovereign (0.2%)** | **Sovereign (0.2%)** | **Sovereign (0.2%)** |
| Republic of Cameroon <br>International Bond,<br>5.95%, 7/7/32 | 681 | 565 |
| **Colombia (4.4%)** | **Colombia (4.4%)** | **Colombia (4.4%)** |
| **Corporate Bond (0.3%)** | **Corporate Bond (0.3%)** | **Corporate Bond (0.3%)** |
| Fideicomiso PA Costera,<br>6.25%, 1/15/34 (a) | 4979415 | 1049 |
| **Sovereign (4.1%)** | **Sovereign (4.1%)** | **Sovereign (4.1%)** |
| Colombian TES, Series B<br>5.75%, 11/3/27 | 24995000 | 5422 |
| 6.00%, 4/28/28 | 8982000 | 1911 |
| 6.25%, 7/9/36 | 4382700 | 665 |
| 7.00%, 6/30/32 | 15440600 | 2844 |
| 9.25%, 5/28/42 | 1486900 | 269 |
| Colombian TES,<br>7.00%, 3/26/31 | 8239000 | 1591 |
| 13.25%, 2/9/33 | 8253900 | 2088 |
|  |  | 14790 |
|  |  | 15839 |

---

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Portfolio of Investments (cont'd)

***(Showing Percentage of Total Value of Investments)***

---

| | | |
|:---|:---|:---|
| | **Face<br>Amount<br>(000)** | **Value<br>(000)** |
| **Dominican Republic (2.8%)** | **Dominican Republic (2.8%)** | **Dominican Republic (2.8%)** |
| **Sovereign (2.8%)** | **Sovereign (2.8%)** | **Sovereign (2.8%)** |
| Dominican Republic <br>Central Bank Note,<br>8.00%, 3/12/27 (a) | 15000 | $239 |
| 12.00%, 10/3/25 (a) | 59260 | 1004 |
| 13.00%, 12/5/25 (a) | 67250 | 1146 |
| Dominican Republic <br>International Bond,<br>8.00%, 1/15/27 - 2/12/27 (a) | 114000 | 1822 |
| 11.25%, 9/15/35 | 40450 | 717 |
| 12.00%, 8/8/25 (a) | 262700 | 4461 |
| 12.75%, 9/23/29 (a) | 41000 | 770 |
|  |  | 10159 |
| **Egypt (3.3%)** | **Egypt (3.3%)** | **Egypt (3.3%)** |
| **Sovereign (3.3%)** | **Sovereign (3.3%)** | **Sovereign (3.3%)** |
| Egypt Government Bond,<br>24.46%, 10/1/27 | 587636 | 11829 |
| **Ethiopia (1.1%)** | **Ethiopia (1.1%)** | **Ethiopia (1.1%)** |
| **Sovereign (1.1%)** | **Sovereign (1.1%)** | **Sovereign (1.1%)** |
| Ethiopia International Bond,<br>6.63%, 12/11/24 (a) | $290 | 244 |
| 6.63%, 12/11/24 | 4412 | 3728 |
|  |  | 3972 |
| **Ghana (0.5%)** | **Ghana (0.5%)** | **Ghana (0.5%)** |
| **Sovereign (0.5%)** | **Sovereign (0.5%)** | **Sovereign (0.5%)** |
| Ghana Cocoa Bond,<br>13.00%, 8/30/27 - 8/28/28 | 5054 | 271 |
| Republic of Ghana <br>Government Bond, <br>5.00% Cash, 3.35% PIK<br>8.35%, 2/16/27 (b) | 3980 | 236 |
| 5.00% Cash, 3.50% PIK<br>8.50%, 2/15/28 (b) | 3128 | 168 |
| 5.00% Cash, 3.65% PIK<br>8.65%, 2/13/29 (b) | 1689 | 84 |
| 5.00% Cash, 3.80% PIK<br>8.80%, 2/12/30 (b) | 3083 | 144 |
| 5.00% Cash, 3.95% PIK<br>8.95%, 2/11/31 (b) | 3922 | 172 |
| 5.00% Cash, 4.10% PIK<br>9.10%, 2/10/32 (b) | 5492 | 231 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Face<br>Amount<br>(000)** | **Value<br>(000)** | **Value<br>(000)** |
| 5.00% Cash, 4.25% PIK<br>9.25%, 2/8/33 (b) | 4646 | $| 188 |
| 5.00% Cash, 4.55% PIK<br>9.55%, 2/6/35 (b) | 1490 |  | 57 |
| 5.00% Cash, 4.70% PIK<br>9.70%, 2/5/36 (b) | 3486 |  | 131 |
| 5.00% Cash, 4.85% PIK<br>9.85%, 2/3/37 (b) | 938 |  | 35 |
| 5.00% Cash, 5.00% PIK<br>10.00%, 2/2/38 (b) | 2346 |  | 87 |
|  |  |  | 1804 |
| **Guatemala (0.1%)** | **Guatemala (0.1%)** | **Guatemala (0.1%)** | **Guatemala (0.1%)** |
| **Sovereign (0.1%)** | **Sovereign (0.1%)** | **Sovereign (0.1%)** | **Sovereign (0.1%)** |
| Guatemala Government Bond,<br>6.60%, 6/13/36 | $283 |  | 284 |
| **Honduras (0.5%)** | **Honduras (0.5%)** | **Honduras (0.5%)** | **Honduras (0.5%)** |
| **Sovereign (0.5%)** | **Sovereign (0.5%)** | **Sovereign (0.5%)** | **Sovereign (0.5%)** |
| Honduras Government <br>International Bond,<br>8.63%, 11/27/34 | 1790 |  | 1777 |
| **Hungary (0.3%)** | **Hungary (0.3%)** | **Hungary (0.3%)** | **Hungary (0.3%)** |
| **Sovereign (0.3%)** | **Sovereign (0.3%)** | **Sovereign (0.3%)** | **Sovereign (0.3%)** |
| Hungary Government Bond,<br>3.00%, 4/25/41 | 452940 |  | 790 |
| 4.00%, 4/28/51 | 139450 |  | 249 |
|  |  |  | 1039 |
| **Indonesia (10.6%)** | **Indonesia (10.6%)** | **Indonesia (10.6%)** | **Indonesia (10.6%)** |
| **Sovereign (10.6%)** | **Sovereign (10.6%)** | **Sovereign (10.6%)** | **Sovereign (10.6%)** |
| Indonesia Treasury Bond,<br>6.50%, 7/15/30 - 2/15/31 | 164465000 |  | 9851 |
| 6.75%, 7/15/35 | 81145000 |  | 4852 |
| 7.00%, 9/15/30 - 2/15/33 | 128607000 |  | 7844 |
| 7.13%, 6/15/38 - 6/15/43 | 86468000 |  | 5246 |
| 7.50%, 6/15/35 | 83000000 |  | 5201 |
| 8.38%, 4/15/39 | 20000000 |  | 1340 |
| 8.75%, 5/15/31 | 58978000 |  | 3894 |
|  |  |  | 38228 |
| **Ivory Coast (0.2%)** | **Ivory Coast (0.2%)** | **Ivory Coast (0.2%)** | **Ivory Coast (0.2%)** |
| **Sovereign (0.2%)** | **Sovereign (0.2%)** | **Sovereign (0.2%)** | **Sovereign (0.2%)** |
| Ivory Coast Government <br>International Bond,<br>6.63%, 3/22/48 | 732 |  | 623 |

---

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Portfolio of Investments (cont'd)

***(Showing Percentage of Total Value of Investments)***

---

| | | |
|:---|:---|:---|
| | **Face<br>Amount<br>(000)** | **Value<br>(000)** |
| **Jordan (0.2%)** | **Jordan (0.2%)** | **Jordan (0.2%)** |
| **Sovereign (0.2%)** | **Sovereign (0.2%)** | **Sovereign (0.2%)** |
| Jordan Government <br>International Bond,<br>5.85%, 7/7/30 | $506 | $468 |
| 7.38%, 10/10/47 | 406 | 341 |
|  |  | 809 |
| **Kazakhstan (1.8%)** | **Kazakhstan (1.8%)** | **Kazakhstan (1.8%)** |
| **Sovereign (1.8%)** | **Sovereign (1.8%)** | **Sovereign (1.8%)** |
| Development Bank of <br>Kazakhstan JSC,<br>13.00%, 4/15/27 (a) | 1922000 | 3512 |
| Kazakhstan Government <br>Bond - MEUKAM,<br>5.00%, 4/18/28 | 148388 | 225 |
| 5.50%, 9/20/28 | 209238 | 312 |
| 10.55%, 7/28/29 | 502000 | 853 |
| 14.00%, 5/12/31 - 5/19/32 | 774179 | 1457 |
|  |  | 6359 |
| **Lebanon (0.4%)** | **Lebanon (0.4%)** | **Lebanon (0.4%)** |
| **Sovereign (0.4%)** | **Sovereign (0.4%)** | **Sovereign (0.4%)** |
| Lebanon Government <br>International Bond,<br>5.80%, 4/14/49 (c)(d) | $316 | 54 |
| 6.00%, 1/27/23 (c)(d) | 532 | 92 |
| 6.10%, 10/4/22 (c)(d) | 2288 | 393 |
| 6.15%, 6/19/49 (c)(d) | 463 | 80 |
| 6.20%, 2/26/25 (c)(d) | 58 | 10 |
| 6.25%, 5/27/22 - 6/12/25 (c)(d) | 372 | 65 |
| 6.38%, 3/9/20 (c)(d) | 725 | 125 |
| 6.40%, 5/26/23 (c)(d) | 2260 | 391 |
| 6.65%, 4/22/24 (c)(d) | 15 | 3 |
| 6.75%, 11/29/27 (c)(d) | 54 | 9 |
| 6.85%, 3/23/27 (c)(d) | 53 | 9 |
| 7.00%, 3/20/28 - 3/23/32 (c)(d) | 127 | 22 |
| 7.25%, 3/23/37 (c)(d) | 177 | 31 |
| 8.25%, 4/12/21 (c)(d) | 1780 | 306 |
| Lebanon Government <br>International Bond, <br>Lebanon Government <br>International Bond<br>6.85%, 5/25/29 (c)(d) | 29 | 5 |
|  |  | 1595 |

---

---

| | | |
|:---|:---|:---|
| | **Face<br>Amount<br>(000)** | **Value<br>(000)** |
| **Malaysia (1.8%)** | **Malaysia (1.8%)** | **Malaysia (1.8%)** |
| **Sovereign (1.8%)** | **Sovereign (1.8%)** | **Sovereign (1.8%)** |
| Malaysia Government Bond,<br>3.76%, 5/22/40 | 24620 | $5675 |
| 4.70%, 10/15/42 | 3900 | 995 |
|  |  | 6670 |
| **Mexico (10.0%)** | **Mexico (10.0%)** | **Mexico (10.0%)** |
| **Sovereign (10.0%)** | **Sovereign (10.0%)** | **Sovereign (10.0%)** |
| Mexican Bonos,<br>7.75%, 11/23/34 | 85015 | 3922 |
| 8.00%, 11/7/47 - 7/31/53 | 178199 | 7495 |
| 8.50%, 5/31/29 - 11/18/38 | 482323 | 23076 |
| Petroleos Mexicanos,<br>6.88%, 10/16/25 | $1720 | 1715 |
|  |  | 36208 |
| **Mongolia (0.1%)** | **Mongolia (0.1%)** | **Mongolia (0.1%)** |
| **Sovereign (0.1%)** | **Sovereign (0.1%)** | **Sovereign (0.1%)** |
| Mongolia Government <br>International Bond,<br>6.63%, 2/25/30 (a) | 200 | 193 |
| 6.63%, 2/25/30 | 200 | 193 |
|  |  | 386 |
| **Montenegro (1.0%)** | **Montenegro (1.0%)** | **Montenegro (1.0%)** |
| **Sovereign (1.0%)** | **Sovereign (1.0%)** | **Sovereign (1.0%)** |
| Montenegro Government <br>International Bond,<br>2.88%, 12/16/27 | 261 | 289 |
| 4.88%, 4/1/32 | 1963 | 2161 |
| 7.25%, 3/12/31 (a) | $200 | 202 |
| 7.25%, 3/12/31 | 918 | 927 |
|  |  | 3579 |
| **Paraguay (2.4%)** | **Paraguay (2.4%)** | **Paraguay (2.4%)** |
| **Corporate Bond (0.7%)** | **Corporate Bond (0.7%)** | **Corporate Bond (0.7%)** |
| Itau BBA International PLC,<br>0.00%, 2/19/30 | $18493970 | 2515 |
| **Sovereign (1.7%)** | **Sovereign (1.7%)** | **Sovereign (1.7%)** |
| Paraguay Government <br>International Bond,<br>7.90%, 2/9/31 PYG | 9630000 | 1182 |
| 7.90%, 2/9/31 (a) | 37776000 | 4639 |
| 8.50%, 3/4/35 (a) | 1804000 | 223 |
|  |  | 6044 |
|  |  | 8559 |

---

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Portfolio of Investments (cont'd)

***(Showing Percentage of Total Value of Investments)***

---

| | | | |
|:---|:---|:---|:---|
| | **Face<br>Amount<br>(000)** | **Face<br>Amount<br>(000)** | **Value<br>(000)** |
| **Peru (5.4%)** | **Peru (5.4%)** | **Peru (5.4%)** | **Peru (5.4%)** |
| **Sovereign (5.4%)** | **Sovereign (5.4%)** | **Sovereign (5.4%)** | **Sovereign (5.4%)** |
| Peru Government Bond,<br>5.40%, 8/12/34 | PEN | 26391 | $6640 |
| 6.90%, 8/12/37 |  | 23639 | 6382 |
| 7.30%, 8/12/33 |  | 1091 | 319 |
| 7.60%, 8/12/39 |  | 21662 | 6155 |
|  |  |  | 19496 |
| **Poland (4.6%)** | **Poland (4.6%)** | **Poland (4.6%)** | **Poland (4.6%)** |
| **Sovereign (4.6%)** | **Sovereign (4.6%)** | **Sovereign (4.6%)** | **Sovereign (4.6%)** |
| Republic of Poland <br>Government Bond,<br>2.00%, 8/25/36 | PLN | 56298 | 13461 |
| 5.00%, 10/25/34 |  | 12266 | 3197 |
|  |  |  | 16658 |
| **Romania (2.1%)** | **Romania (2.1%)** | **Romania (2.1%)** | **Romania (2.1%)** |
| **Sovereign (2.1%)** | **Sovereign (2.1%)** | **Sovereign (2.1%)** | **Sovereign (2.1%)** |
| Romania Government Bond,<br>2.50%, 10/25/27 | RON | 2855 | 583 |
| 4.25%, 4/28/36 |  | 8910 | 1570 |
| 4.75%, 10/11/34 |  | 25000 | 4662 |
| 8.75%, 10/30/28 |  | 3970 | 941 |
|  |  |  | 7756 |
| **Serbia (4.5%)** | **Serbia (4.5%)** | **Serbia (4.5%)** | **Serbia (4.5%)** |
| **Sovereign (4.5%)** | **Sovereign (4.5%)** | **Sovereign (4.5%)** | **Sovereign (4.5%)** |
| Serbia Treasury Bond,<br>4.50%, 8/20/32 | RSD | 869800 | 8224 |
| 7.00%, 10/26/31 |  | 730690 | 7947 |
|  |  |  | 16171 |
| **South Africa (6.4%)** | **South Africa (6.4%)** | **South Africa (6.4%)** | **South Africa (6.4%)** |
| **Sovereign (6.4%)** | **Sovereign (6.4%)** | **Sovereign (6.4%)** | **Sovereign (6.4%)** |
| Republic of South Africa <br>Government Bond,<br>8.50%, 1/31/37 | ZAR | 38329 | 1709 |
| 8.75%, 1/31/44 |  | 106539 | 4445 |
| 8.88%, 2/28/35 |  | 155032 | 7478 |
| 9.00%, 1/31/40 |  | 217055 | 9561 |
|  |  |  | 23193 |
| **Sri Lanka (1.7%)** | **Sri Lanka (1.7%)** | **Sri Lanka (1.7%)** | **Sri Lanka (1.7%)** |
| **Sovereign (1.7%)** | **Sovereign (1.7%)** | **Sovereign (1.7%)** | **Sovereign (1.7%)** |
| Sri Lanka Government Bond,<br>9.00%, 6/1/33 | LKR | 30000 | 89 |
| 10.25%, 9/15/34 |  | 481000 | 1479 |

---

---

| | | |
|:---|:---|:---|
| | **Face<br>Amount<br>(000)** | **Value<br>(000)** |
| 11.00%, 10/15/28 - 10/15/30 | $1002000 | $3426 |
| 11.50%, 12/15/32 | 311000 | 1060 |
|  |  | 6054 |
| **Suriname (0.9%)** | **Suriname (0.9%)** | **Suriname (0.9%)** |
| **Sovereign (0.9%)** | **Sovereign (0.9%)** | **Sovereign (0.9%)** |
| Suriname Government <br>International Bond,<br>4.95% Cash, 3.00% PIK |  |  |
| 7.95%, 7/15/33 (a)(b) | $144 | 133 |
| 7.95%, 7/15/33 (b) | 1371 | 1266 |
| Suriname Government <br>International Bond,<br>9.00%, 12/31/50 (a)(e) | 675 | 715 |
| 9.00%, 12/31/50 (e) | 956 | 1012 |
|  |  | 3126 |
| **Thailand (2.9%)** | **Thailand (2.9%)** | **Thailand (2.9%)** |
| **Sovereign (2.9%)** | **Sovereign (2.9%)** | **Sovereign (2.9%)** |
| Thailand Government Bond,<br>1.60%, 6/17/35 | 30700 | 894 |
| 1.88%, 6/17/49 | 50000 | 1327 |
| 2.00%, 6/17/42 | 226000 | 6425 |
| 3.30%, 6/17/38 | 50000 | 1704 |
|  |  | 10350 |
| **Tunisia (0.5%)** | **Tunisia (0.5%)** | **Tunisia (0.5%)** |
| **Sovereign (0.5%)** | **Sovereign (0.5%)** | **Sovereign (0.5%)** |
| Tunisian Republic,<br>6.38%, 7/15/26 | 1590 | 1748 |
| **Turkey (0.8%)** | **Turkey (0.8%)** | **Turkey (0.8%)** |
| **Sovereign (0.8%)** | **Sovereign (0.8%)** | **Sovereign (0.8%)** |
| Turkiye Government Bond,<br>17.30%, 7/19/28 | 50000 | 853 |
| 17.80%, 7/13/33 | 3000 | 47 |
| 26.20%, 10/5/33 | 55000 | 1190 |
| 27.70%, 9/27/34 | 20000 | 444 |
| 30.00%, 9/12/29 | 20000 | 445 |
| 31.08%, 11/8/28 | 3000 | 69 |
|  |  | 3048 |
| **Uruguay (0.0%)‡** | **Uruguay (0.0%)‡** | **Uruguay (0.0%)‡** |
| **Sovereign (0.0%)‡** | **Sovereign (0.0%)‡** | **Sovereign (0.0%)‡** |
| Uruguay Government <br>International Bond,<br>3.40%, 5/16/45 | 5116 | $122 |

---

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Portfolio of Investments (cont'd)

***(Showing Percentage of Total Value of Investments)***

---

| | | |
|:---|:---|:---|
| | **Face<br>Amount<br>(000)** | **Value<br>(000)** |
| **Uzbekistan (8.4%)** | **Uzbekistan (8.4%)** | **Uzbekistan (8.4%)** |
| **Corporate Bonds (4.1%)** | **Corporate Bonds (4.1%)** | **Corporate Bonds (4.1%)** |
| European Bank for <br>Reconstruction & <br>Development,<br>17.20%, 4/9/26 | $1700 | $1674 |
| 17.35%, 3/1/27 | 564 | 547 |
| Ipoteka-Bank ATIB,<br>20.50%, 4/25/27 | 15590000 | 1245 |
| Uzbek Industrial & <br>Construction Bank ATB,<br>21.00%, 7/24/27 | 141910000 | 11203 |
|  |  | 14669 |
| **Loan Participation Notes (1.0%)** | **Loan Participation Notes (1.0%)** | **Loan Participation Notes (1.0%)** |
| Europe Asia Investment <br>Finance BV,<br>18.70%, 7/21/26 (i) | 25786585 | 1984 |
| Uzbek Industrial & <br>Construction Bank ATB <br>via Daryo Finance BV,<br>18.75%, 6/15/25 (i) | 24257650 | 1748 |
|  |  | 3732 |
| **Sovereign (3.3%)** | **Sovereign (3.3%)** | **Sovereign (3.3%)** |
| National Bank of Uzbekistan,<br>19.88%, 7/5/27 | 14170000 | 1108 |
| Republic of Uzbekistan <br>International Bond, <br>15.50%, 2/25/28 | 42000000 | 3276 |
| 16.25%, 10/12/26 | 55720000 | 4381 |
| 16.63%, 5/29/27 | 40000000 | 3172 |
|  |  | 11937 |
|  |  | 30338 |
| **Venezuela (0.9%)** | **Venezuela (0.9%)** | **Venezuela (0.9%)** |
| **Sovereign (0.9%)** | **Sovereign (0.9%)** | **Sovereign (0.9%)** |
| Petroleos de Venezuela SA,<br>5.38%, 4/12/27 (c)(d) | $1817 | 215 |
| 5.50%, 4/12/37 (c)(d) | 507 | 60 |
| 6.00%, 5/16/24 - 11/15/26 (c)(d) | 10902 | 1292 |
| 9.00%, 11/17/21 (c)(d) | 375 | 49 |
| 9.75%, 5/17/35 (c)(d) | 690 | 90 |
| 12.75%, 2/17/22 (c)(d) | 291 | 40 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Face<br>Amount<br>(000)** | **Value<br>(000)** | **Value<br>(000)** |
| Venezuela Government <br>International Bond,<br>6.00%, 12/9/20 (c)(d) | $322 | $| 42 |
| 7.00%, 3/31/38 (c)(d) | 430 |  | 66 |
| 7.65%, 4/21/25 (c)(d) | 466 |  | 69 |
| 7.75%, 10/13/19 (c)(d) | 710 |  | 101 |
| 8.25%, 10/13/24 (c)(d) | 1410 |  | 208 |
| 9.00%, 5/7/23 (c)(d) | 307 |  | 46 |
| 9.25%, 9/15/27 - 5/7/28 (c)(d) | 3831 |  | 658 |
| 9.38%, 1/13/34 (c)(d) | 108 |  | 23 |
| 11.75%, 10/21/26 (c)(d) | 366 |  | 67 |
| 11.95%, 8/5/31 (c)(d) | 405 |  | 68 |
| 12.75%, 8/23/22 (c)(d) | 237 |  | 40 |
|  |  |  | 3134 |
| **TOTAL FIXED INCOME SECURITIES** (Cost $326,378) |  |  | 321516 |
|  | **No. of<br>Warrants** |  |  |
| **WARRANTS (1.0%)** | **WARRANTS (1.0%)** | **WARRANTS (1.0%)** | **WARRANTS (1.0%)** |
| **Ukraine (1.0%)** | **Ukraine (1.0%)** | **Ukraine (1.0%)** | **Ukraine (1.0%)** |
| Ukraine Government <br>International Bond, <br>expires 8/1/41 (e) <br>(Cost $3,980) | 5351000 |  | 3823 |
|  | **Face<br>Amount<br>(000)** |  |  |
| **SHORT-TERM INVESTMENTS (10.0%)** | **SHORT-TERM INVESTMENTS (10.0%)** | **SHORT-TERM INVESTMENTS (10.0%)** | **SHORT-TERM INVESTMENTS (10.0%)** |
| **U.S. Treasury Security (2.7%)** | **U.S. Treasury Security (2.7%)** | **U.S. Treasury Security (2.7%)** | **U.S. Treasury Security (2.7%)** |
| U.S. Treasury Bill,<br>4.32%, 8/5/25 <br>(Cost $9,888) (f) | $10000 |  | 9889 |
|  | **Shares** |  |  |
| **Investment Company (5.5%)** | **Investment Company (5.5%)** | **Investment Company (5.5%)** | **Investment Company (5.5%)** |
| Morgan Stanley Institutional <br>Liquidity Funds — Treasury <br>Securities Portfolio — Institutional <br>Class, 4.14% (See Note F) <br>(Cost $19,693) | 19693107 |  | 19693 |

---

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Portfolio of Investments (cont'd)

***(Showing Percentage of Total Value of Investments)***

---

| | | | |
|:---|:---|:---|:---|
| | **Face<br>Amount<br>(000)** | **Face<br>Amount<br>(000)** | **Value<br>(000)** |
| **Sovereign (1.8%)** | **Sovereign (1.8%)** | **Sovereign (1.8%)** | **Sovereign (1.8%)** |
| **Albania (0.0%)‡** | **Albania (0.0%)‡** | **Albania (0.0%)‡** | **Albania (0.0%)‡** |
| Albanian Treasury Bill, <br>2.70%, 3/12/26 | ALL | 9300 | $104 |
| **Argentina (0.1%)** | **Argentina (0.1%)** | **Argentina (0.1%)** | **Argentina (0.1%)** |
| Bono Del Tesoro Nacional <br>Capitalizable en Pesos, <br>2.15%, 6/30/26 | ARS | 212310 | 182 |
| **Nigeria (1.7%)** | **Nigeria (1.7%)** | **Nigeria (1.7%)** | **Nigeria (1.7%)** |
| Nigeria OMO Bill,<br>26.41%, 5/20/25 | NGN | 315264000 | 194 |
| 27.83%, 5/27/25 |  | 4437949000 | 2726 |
| 28.13%, 5/27/25 |  | 81345000 | 50 |
| 30.17%, 8/19/25 |  | 940345000 | 541 |
| 31.32%, 10/7/25 |  | 2604053000 | 1455 |
| 32.15%, 6/10/25 |  | 390850000 | 237 |
| 32.30%, 6/17/25 |  | 405564000 | 245 |
| 36.74%, 9/30/25 |  | 1078204000 | 605 |
| 54.15%, 5/20/25 |  | 415546000 | 256 |
|  |  |  | 6309 |
| **Total Sovereign** (Cost $6,781) |  |  | 6595 |
| **TOTAL SHORT-TERM INVESTMENTS** (Cost $36,362) |  |  | 36177 |
| **TOTAL INVESTXMENTS EXCLUDING PURCHASED<br>OPTIONS (99.9%)**(Cost $366,720) |  |  | 361516 |
| **TOTAL PURCHASED OPTIONS <br>OUTSTANDING (0.1%)** (Cost $340) |  |  | 310 |
| **TOTAL INVESTMENTS (100%)** (Cost $367,060)(g)(h) |  |  | 361826 |
| **LIABILITIES IN EXCESS OF OTHER ASSETS** |  |  | (22300) |
| **NET ASSETS** |  |  | $339526 |

---

Country assignments and aggregations are based generally on third party vendor classifications and information, and may be different from the assignments and aggregations under the policies set forth in the Fund's prospectus and/or statement of additional information relating to geographic classifications.

(a) 144A security — Certain conditions for public sale may exist. Unless otherwise noted, these securities are deemed to be liquid.

(b) Income may be paid in additional securities and/or cash at the discretion of the issuer.

(c) Issuer in bankruptcy.

(d) Non-income producing security; bond in default.

(e) Floating or variable rate securities: The rates disclosed are as of April 30, 2025. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description in the Portfolio of Investments. Certain variable rate securities may not be based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description in the Portfolio of Investments.

(f) Rate shown is the yield to maturity at April 30, 2025.

(g) Securities are available for collateral in connection with securities purchased on a forward commitment basis, open foreign currency forward exchange contracts, futures contracts and swap agreements.

(h) At April 30, 2025, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $32,540,000 and the aggregate gross unrealized depreciation is approximately $28,683,000, resulting in net unrealized appreciation of approximately $3,857,000.

(i) Security is valued using significant unobservable inputs and is categorized as level 3 in the fair value hierarchy.

PIK Payment-in-Kind.

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Portfolio of Investments (cont'd)

**Foreign Currency Forward Exchange Contracts:**

The Fund had the following foreign currency forward exchange contracts open at April 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Counterparty** | **Contracts<br>to <br>Deliver<br>(000)** | **In<br>Exchange<br>For<br>(000)** | **Delivery<br>Date** | **Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** |
| Australia & New Zealand <br>Banking Group Ltd. | $7753 | 130477400 | 6/18/25 | $93 |
| Bank of America NA | 377000 | $4376 | 6/18/25 | (72 |
| Bank of America NA | $1086 | 94000 | 6/18/25 | 24 |
| Bank of America NA | $2269 | 1159031 | 5/19/25 | (26 |
| Bank of America NA | $1129 | 580114 | 5/21/25 | (7 |
| Bank of America NA | $9387 | 178000 | 6/18/25 | 149 |
| Bank of America NA | $2353 | 45000 | 6/18/25 | 57 |
| Bank of America NA | 107000 | $5492 | 6/18/25 | (240 |
| Barclays Bank PLC | 36400 | 1446 | 6/18/25 | (11 |
| Barclays Bank PLC | 75180 | 2998 | 6/18/25 | (11 |
| Barclays Bank PLC | 63570 | 2535 | 6/18/25 | (9 |
| Barclays Bank PLC | 22000 | 880 | 6/18/25 | (1 |
| Barclays Bank PLC | 9413 | 236037 | 6/18/25 | 34 |
| Barclays Bank PLC | 6365 | 159598 | 6/18/25 | 23 |
| Barclays Bank PLC | 3817 | 95709 | 6/18/25 | 14 |
| Barclays Bank PLC | 1408 | 35630 | 6/18/25 | 19 |
| Barclays Bank PLC | 8007 | 3253158 | 5/20/25 | 27 |
| Barclays Bank PLC | 4159 | 20886 | 6/18/25 | 20 |
| Barclays Bank PLC | 537 | 2699 | 6/18/25 | 3 |
| Barclays Bank PLC | 545314 | 1342 | 5/20/25 | (4 |
| Barclays Bank PLC | 50690 | 126 | 5/20/25 | 1 |
| Barclays Bank PLC | 213080400 | $13001 | 6/18/25 | 188 |
| Barclays Bank PLC | 78417880 | $4772 | 6/18/25 | 56 |
| Barclays Bank PLC | 298890432 | $18188 | 6/18/25 | 214 |
| Barclays Bank PLC | 28560021 | $1738 | 6/18/25 | 20 |
| Barclays Bank PLC | 20798641 | $1261 | 6/18/25 | 10 |
| Barclays Bank PLC | 10000000 | $601 | 6/18/25 | (— |
| Barclays Bank PLC | 17890000 | $1076 | 6/18/25 | (— |
| Barclays Bank PLC | 323091 | $15878 | 6/18/25 | (500 |
| Barclays Bank PLC | 2631 | 524 | 6/18/25 | (2 |
| Barclays Bank PLC | 43158 | $1128 | 5/6/25 | 9 |
| Barclays Bank PLC | 22963 | $433 | 3/23/26 | 7 |
| Barclays Bank PLC | 21377 | $468 | 9/22/25 | (5 |
| Barclays Bank PLC | 17069 | $431 | 5/12/25 | (9 |
| Barclays Bank PLC | 88547 | $1636 | 3/26/26 | (1 |
| Barclays Bank PLC | 20426 | $381 | 3/26/26 | 4 |
| Barclays Bank PLC | $2284 | 13840 | 6/3/25 | 137 |
| Barclays Bank PLC | $594 | 9828000 | 6/18/25 | (3 |
| Barclays Bank PLC | $475 | 7862000 | 6/18/25 | (2 |
| Barclays Bank PLC | $472 | 7800000 | 6/18/25 | (3 |
| Barclays Bank PLC | $8222 | 135111289 | 6/18/25 | (97 |

---

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Portfolio of Investments (cont'd)

**Foreign Currency Forward Exchange Contracts: (cont'd)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Counterparty** | **Contracts<br>to <br>Deliver<br>(000)** | **In<br>Exchange<br>For<br>(000)** | **Delivery<br>Date** | **Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** |
| Barclays Bank PLC | $6809 | 111888492 | 6/18/25 | $(80 |
| Barclays Bank PLC | $288 | 4776000 | 6/18/25 | (1 |
| Barclays Bank PLC | $144 | 2387672 | 6/18/25 | (— |
| Barclays Bank PLC | $73 | 1205000 | 6/18/25 | (— |
| Barclays Bank PLC | $404 | 6677000 | 6/18/25 | (2 |
| Barclays Bank PLC | $650 | 10772195 | 6/18/25 | (2 |
| Barclays Bank PLC | $178 | 3023707 | 6/18/25 | 3 |
| Barclays Bank PLC | $2355 | 39919840 | 6/18/25 | 45 |
| Barclays Bank PLC | $12963 | 1138900 | 6/18/25 | 475 |
| Barclays Bank PLC | $889 | 18343 | 6/18/25 | 41 |
| Barclays Bank PLC | $496 | 10249 | 6/18/25 | 23 |
| Barclays Bank PLC | $5982 | 26439 | 6/18/25 | 154 |
| Barclays Bank PLC | $9945 | 43953 | 6/18/25 | 256 |
| Barclays Bank PLC | $255 | 1128 | 6/18/25 | 7 |
| Barclays Bank PLC | $5091 | 22500 | 6/18/25 | 131 |
| Barclays Bank PLC | $411 | 1818 | 6/18/25 | 11 |
| Barclays Bank PLC | $2432 | 93001 | 5/6/25 | (19 |
| Barclays Bank PLC | $474 | 21377 | 9/22/25 | (1 |
| Barclays Bank PLC | $2045 | 108973 | 3/26/26 | (30 |
| Barclays Bank PLC | $2045 | 93844 | 9/26/25 | 26 |
| Barclays Bank PLC | $974 | 38610 | 5/12/25 | 20 |
| Barclays Bank PLC | $325 | 12870 | 5/12/25 | 7 |
| Barclays Bank PLC | $364 | 6800 | 6/18/25 | (— |
| Barclays Bank PLC | $2152 | 42690 | 6/18/25 | 135 |
| Barclays Bank PLC | $2430 | 46131 | 6/18/25 | 41 |
| BNP Paribas SA | 627880 | $661 | 6/18/25 | (2 |
| BNP Paribas SA | 66346 | $70 | 6/18/25 | (— |
| BNP Paribas SA | $7213 | 6850494 | 6/18/25 | 20 |
| BNP Paribas SA | $656 | 10870021 | 6/18/25 | (3 |
| BNP Paribas SA | $230 | 3812000 | 6/18/25 | (1 |
| BNP Paribas SA | $7516 | 647700 | 6/18/25 | 126 |
| BNP Paribas SA | $2491 | 52000 | 6/18/25 | 145 |
| BNP Paribas SA | $2052 | 38647 | 6/18/25 | 18 |
| Citibank NA | 9143000 | $2202 | 6/18/25 | 52 |
| Citibank NA | 12319378 | $2773 | 6/18/25 | (124 |
| Citibank NA | 487 | 12200 | 6/18/25 | 1 |
| Citibank NA | 34405278 | $2096 | 6/18/25 | 27 |
| Citibank NA | 16000000 | $966 | 6/18/25 | 3 |
| Citibank NA | 209240 | $2387 | 6/18/25 | (82 |
| Citibank NA | 348000 | $4001 | 6/18/25 | (105 |
| Citibank NA | 2024 | $550 | 6/18/25 | (1 |
| Citibank NA | 2196 | $598 | 6/18/25 | (— |
| Citibank NA | 20000 | 4627 | 6/18/25 | (29 |
| Citibank NA | 43980 | $1309 | 6/18/25 | (12 |

---

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Portfolio of Investments (cont'd)

**Foreign Currency Forward Exchange Contracts: (cont'd)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Counterparty** | **Contracts<br>to <br>Deliver<br>(000)** | **In<br>Exchange<br>For<br>(000)** | **Delivery<br>Date** | **Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** |
| Citibank NA | 8560 | $220 | 5/12/25 | $(1 |
| Citibank NA | 46113 | $1015 | 9/26/25 | (2 |
| Citibank NA | $1368 | 7952 | 6/3/25 | 23 |
| Citibank NA | $3765 | 21944 | 6/3/25 | 73 |
| Citibank NA | $7233 | 42048 | 6/3/25 | 121 |
| Citibank NA | $19907 | 116025 | 6/3/25 | 387 |
| Citibank NA | $65 | 61321 | 6/18/25 | (1 |
| Citibank NA | $1930 | 8619010 | 6/18/25 | 97 |
| Citibank NA | $2478 | 10875036 | 6/18/25 | 79 |
| Citibank NA | $1495 | 81572 | 8/12/25 | 38 |
| Citibank NA | $2 | 121 | 6/18/25 |  |
| Citibank NA | $488 | 450 | 5/9/25 | 22 |
| Citibank NA | $22079 | 1935390 | 6/18/25 | 757 |
| Citibank NA | $3309 | 290094 | 6/18/25 | 114 |
| Citibank NA | $1089 | 95424 | 6/18/25 | 37 |
| Citibank NA | $1035 | 90000 | 6/18/25 | 27 |
| Citibank NA | $2016 | 7374 | 6/18/25 | (7 |
| Citibank NA | $166 | 6454 | 5/12/25 | 1 |
| Citibank NA | $1849 | 72021 | 5/12/25 | 7 |
| Citibank NA | $352 | 15000 | 6/18/25 | 3 |
| Goldman Sachs International | 23060 | $3955 | 6/3/25 | (78 |
| Goldman Sachs International | 46989 | $8060 | 6/3/25 | (159 |
| Goldman Sachs International | 9220 | $1563 | 6/3/25 | (50 |
| Goldman Sachs International | 590000 | $625 | 6/18/25 | 2 |
| Goldman Sachs International | 3337 | 14041 | 6/18/25 | (80 |
| Goldman Sachs International | 1838 | 7930 | 6/18/25 | 8 |
| Goldman Sachs International | 4413 | 18809 | 6/18/25 | (43 |
| Goldman Sachs International | 4317648 | $256 | 6/18/25 | (4 |
| Goldman Sachs International | 968770 | $1885 | 5/19/25 | 10 |
| Goldman Sachs International | 302933 | $580 | 5/14/25 | (7 |
| Goldman Sachs International | 302933 | $576 | 5/28/25 | (9 |
| Goldman Sachs International | 580114 | $1105 | 5/21/25 | (17 |
| Goldman Sachs International | 302933 | $574 | 6/5/25 | (9 |
| Goldman Sachs International | 2655939 | $5045 | 5/30/25 | (79 |
| Goldman Sachs International | 49090 | $2406 | 6/18/25 | (83 |
| Goldman Sachs International | 21500 | $4860 | 6/18/25 | (130 |
| Goldman Sachs International | 25833 | $5773 | 6/18/25 | (223 |
| Goldman Sachs International | 24990 | $5596 | 6/18/25 | (205 |
| Goldman Sachs International | 24980 | $5568 | 6/18/25 | (230 |
| Goldman Sachs International | 1078204 | $552 | 10/7/25 | (69 |
| Goldman Sachs International | 2060 | $558 | 6/18/25 | (3 |
| Goldman Sachs International | 2090 | 416 | 6/18/25 | (2 |
| Goldman Sachs International | 3200 | 639 | 6/18/25 | (1 |
| Goldman Sachs International | 339120 | $10052 | 6/18/25 | (132 |

---

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Portfolio of Investments (cont'd)

**Foreign Currency Forward Exchange Contracts: (cont'd)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Counterparty** | **Contracts<br>to <br>Deliver<br>(000)** | **In<br>Exchange<br>For<br>(000)** | **Delivery<br>Date** | **Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** |
| Goldman Sachs International | 161510 | $4788 | 6/18/25 | $(63 |
| Goldman Sachs International | 18523 | $441 | 6/23/25 | (14 |
| Goldman Sachs International | 26000 | $626 | 5/12/25 | (43 |
| Goldman Sachs International | $1551 | 9220 | 6/3/25 | 62 |
| Goldman Sachs International | $4 | 225 | 10/27/25 |  |
| Goldman Sachs International | $528 | 28802 | 8/11/25 | 14 |
| Goldman Sachs International | $842 | 43603 | 5/19/25 | 10 |
| Goldman Sachs International | $2506 | 1275777 | 5/19/25 | (37 |
| Goldman Sachs International | $1134 | 577417 | 5/19/25 | (17 |
| Goldman Sachs International | $3194 | 1631454 | 5/30/25 | (47 |
| Goldman Sachs International | $497 | 10249 | 6/18/25 | 23 |
| Goldman Sachs International | $496 | 10249 | 6/18/25 | 23 |
| Goldman Sachs International | $821 | 3640 | 6/18/25 | 24 |
| Goldman Sachs International | $2396 | 10600 | 6/18/25 | 64 |
| Goldman Sachs International | $2034 | 9000 | 6/18/25 | 55 |
| Goldman Sachs International | $4001 | 17700 | 6/18/25 | 107 |
| Goldman Sachs International | $90 | 400 | 6/18/25 | 2 |
| Goldman Sachs International | $2453 | 11000 | 6/18/25 | 101 |
| Goldman Sachs International | $23952 | 808012 | 6/18/25 | 314 |
| Goldman Sachs International | $6862 | 231507 | 6/18/25 | 90 |
| Goldman Sachs International | $447 | 18523 | 6/23/25 | 8 |
| Goldman Sachs International | $2011 | 37771 | 6/18/25 | 13 |
| Goldman Sachs International | 47960 | $2559 | 6/18/25 | (11 |
| HSBC Bank PLC | 15241 | $293 | 5/27/25 | (4 |
| HSBC Bank PLC | 173000 | 427 | 6/18/25 | 2 |
| HSBC Bank PLC | 211795 | $10301 | 6/18/25 | (435 |
| HSBC Bank PLC | 82989 | $4036 | 6/18/25 | (170 |
| HSBC Bank PLC | 100420 | $4884 | 6/18/25 | (206 |
| HSBC Bank PLC | 28391 | 6561 | 6/18/25 | (50 |
| HSBC Bank PLC | $5026 | 4849000 | 6/18/25 | 93 |
| HSBC Bank PLC | $5 | 298 | 7/8/25 |  |
| HSBC Bank PLC | $10357 | 212930 | 6/18/25 | 437 |
| HSBC Bank PLC | $16899 | 347432 | 6/18/25 | 714 |
| HSBC Bank PLC | $20865 | 386973 | 6/18/25 | (133 |
| HSBC Bank PLC | 570 | $31 | 6/18/25 |  |
| HSBC Bank PLC | 622950 | $33589 | 6/18/25 | 215 |
| HSBC Bank PLC | 207001 | $11161 | 6/18/25 | 71 |
| HSBC Bank PLC | 74890 | $4038 | 6/18/25 | 26 |
| JPMorgan Chase Bank NA | 9211 | 38817 | 6/18/25 | (206 |
| JPMorgan Chase Bank NA | 24435 | 102973 | 6/18/25 | (546 |
| JPMorgan Chase Bank NA | 5390224 | $320 | 6/18/25 | (4 |
| JPMorgan Chase Bank NA | 1038996 | $535 | 10/10/25 | (62 |
| JPMorgan Chase Bank NA | 1565057 | $798 | 10/15/25 | (99 |
| JPMorgan Chase Bank NA | 48177 | $13112 | 6/18/25 | (11 |

---

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Portfolio of Investments (cont'd)

**Foreign Currency Forward Exchange Contracts: (cont'd)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Counterparty** | **Contracts<br>to <br>Deliver<br>(000)** | **In<br>Exchange<br>For<br>(000)** | **Delivery<br>Date** | **Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** |
| JPMorgan Chase Bank NA | 7728 | $2103 | 6/18/25 | $(2) |
| JPMorgan Chase Bank NA | 7387 | $2010 | 6/18/25 | (2) |
| JPMorgan Chase Bank NA | 14520 | 3446 | 6/18/25 | 77 |
| JPMorgan Chase Bank NA | 820 | 195 | 6/18/25 | 4 |
| JPMorgan Chase Bank NA | 13900 | 3298 | 6/18/25 | 74 |
| JPMorgan Chase Bank NA | 48969 | 11620 | 6/18/25 | 260 |
| JPMorgan Chase Bank NA | 6936 | $77 | 5/28/25 | (6) |
| JPMorgan Chase Bank NA | 39784 | $445 | 5/19/25 | (36) |
| JPMorgan Chase Bank NA | 17822 | $197 | 6/3/25 | (16) |
| JPMorgan Chase Bank NA | 2910 | $33 | 5/27/25 | (2) |
| JPMorgan Chase Bank NA | 94703 | $1052 | 5/27/25 | (87) |
| JPMorgan Chase Bank NA | 5774 | $66 | 5/27/25 | (3) |
| JPMorgan Chase Bank NA | 7165 | $5467 | 6/18/25 | (33) |
| JPMorgan Chase Bank NA | 43915 | $1098 | 5/12/25 | (33) |
| JPMorgan Chase Bank NA | $2439 | 17960 | 6/18/25 | 40 |
| JPMorgan Chase Bank NA | $4218 | 71787500 | 6/18/25 | 99 |
| JPMorgan Chase Bank NA | $3223 | 54705500 | 6/18/25 | 67 |
| JPMorgan Chase Bank NA | $741 | 384945 | 5/30/25 | 2 |
| JPMorgan Chase Bank NA | $741 | 384946 | 5/30/25 | 2 |
| JPMorgan Chase Bank NA | $595 | 302933 | 5/14/25 | (7) |
| JPMorgan Chase Bank NA | $591 | 302933 | 6/5/25 | (8) |
| JPMorgan Chase Bank NA | $592 | 302933 | 5/28/25 | (8) |
| JPMorgan Chase Bank NA | $499 | 254594 | 5/30/25 | (8) |
| JPMorgan Chase Bank NA | $2454 | 51330 | 6/18/25 | 148 |
| JPMorgan Chase Bank NA | $3052 | 11213 | 6/18/25 | 2 |
| JPMorgan Chase Bank NA | $154 | 14967 | 5/19/25 | 27 |
| JPMorgan Chase Bank NA | $257 | 24817 | 5/19/25 | 43 |
| JPMorgan Chase Bank NA | $76 | 6936 | 5/28/25 | 8 |
| JPMorgan Chase Bank NA | $189 | 17822 | 6/3/25 | 24 |
| JPMorgan Chase Bank NA | $756 | 68689 | 5/27/25 | 70 |
| JPMorgan Chase Bank NA | $189 | 17208 | 5/27/25 | 18 |
| JPMorgan Chase Bank NA | $189 | 17491 | 5/27/25 | 21 |
| JPMorgan Chase Bank NA | $2689 | 92800 | 6/18/25 | 98 |
| JPMorgan Chase Bank NA | $483 | 15800 | 6/18/25 | 13 |
| JPMorgan Chase Bank NA | $1059 | 15185750 | 6/9/25 | 99 |
| Standard Chartered Bank | 6219160 | $1475 | 6/18/25 | 12 |
| Standard Chartered Bank | 15751829 | $3736 | 6/18/25 | 31 |
| Standard Chartered Bank | 8619010 | $2044 | 6/18/25 | 17 |
| Standard Chartered Bank | 7972 | $148 | 6/25/25 | (5) |
| Standard Chartered Bank | 8024 | $148 | 7/9/25 | (6) |
| Standard Chartered Bank | 312 | $356 | 5/5/25 | 2 |
| Standard Chartered Bank | 32340 | $949 | 6/18/25 | (22) |
| Standard Chartered Bank | $3731 | 15733486 | 6/18/25 | (31) |
| Standard Chartered Bank | $356 | 312 | 5/9/25 | (2) |

---

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Portfolio of Investments (cont'd)

**Foreign Currency Forward Exchange Contracts: (cont'd)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Counterparty** | **Contracts<br>to <br>Deliver<br>(000)** | **In<br>Exchange<br>For<br>(000)** | **Delivery<br>Date** | **Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** |
| Standard Chartered Bank | $97 | 354 | 6/18/25 | $(— |
| Standard Chartered Bank | $15390 | 20386 | 6/18/25 | 256 |
| Standard Chartered Bank | $1773 | 25375879 | 6/23/25 | 154 |
| State Street Bank and Trust Co. | 8482 | $9166 | 5/9/25 | (445 |
| State Street Bank and Trust Co. | 2185 | $2361 | 5/9/25 | (115 |
| State Street Bank and Trust Co. | 9575 | $10348 | 5/9/25 | (502 |
| State Street Bank and Trust Co. | 1504 | $1626 | 5/9/25 | (79 |
| State Street Bank and Trust Co. | 4563 | $4931 | 5/9/25 | (239 |
| State Street Bank and Trust Co. | 11345 | $12261 | 5/9/25 | (595 |
| State Street Bank and Trust Co. | 3719 | $4018 | 5/9/25 | (195 |
| State Street Bank and Trust Co. | 2793 | $3018 | 5/9/25 | (147 |
| State Street Bank and Trust Co. | 1560 | $1686 | 5/9/25 | (82 |
| State Street Bank and Trust Co. | 652 | $705 | 5/9/25 | (34 |
| State Street Bank and Trust Co. | 158 | $171 | 5/9/25 | (8 |
| State Street Bank and Trust Co. | 16858273 | $997 | 6/18/25 | (16 |
| State Street Bank and Trust Co. | 60919 | $3007 | 6/18/25 | (81 |
| State Street Bank and Trust Co. | 29409 | 6797 | 6/18/25 | (50 |
| State Street Bank and Trust Co. | $539 | 498 | 5/9/25 | 26 |
| State Street Bank and Trust Co. | $17677 | 16357 | 5/9/25 | 858 |
| State Street Bank and Trust Co. | $30129 | 27880 | 5/9/25 | 1462 |
| State Street Bank and Trust Co. | $3990 | 350000 | 6/18/25 | 140 |
| State Street Bank and Trust Co. | $459 | 40000 | 6/18/25 | 13 |
| State Street Bank and Trust Co. | $1150 | 99000 | 6/18/25 | 19 |
| State Street Bank and Trust Co. | $9951 | 204195 | 6/18/25 | 400 |
| State Street Bank and Trust Co. | $1118 | 4932 | 6/18/25 | 27 |
| State Street Bank and Trust Co. | $1263 | 1693 | 6/18/25 | 36 |
| State Street Bank and Trust Co. | $13099 | 253530 | 6/18/25 | 483 |
| UBS AG | 146110 | $20329 | 6/18/25 | 164 |
| UBS AG | 35110 | $4885 | 6/18/25 | 39 |
| UBS AG | 157 | $173 | 5/9/25 | (6 |
| UBS AG | 11675 | 2770 | 6/18/25 | 61 |
| UBS AG | 49844 | $1244 | 5/6/25 | (50 |
| UBS AG | 47730 | $1051 | 9/26/25 | (2 |
| UBS AG | $14995 | 107775 | 6/18/25 | (121 |
| UBS AG | $7268 | 52240 | 6/18/25 | (59 |
| UBS AG | $346 | 313 | 5/9/25 | 9 |
| UBS AG | $287 | 4775411 | 6/18/25 | (— |
| UBS AG | $2050 | 42857 | 6/18/25 | 123 |
| UBS AG | $448 | 22963 | 3/23/26 | (23 |
| UBS AG | $20220 | 659710 | 6/18/25 | 484 |
|  |  |  |  | $4717 |

---

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Portfolio of Investments (cont'd)

**Call Options Purchased:**

The Fund had the following call options purchased open at April 30, 2025:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Description** | **Strike<br>Price** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount<br>(000)** | **Value<br>(000)** | **Premiums<br>Paid<br>(000)** | **Unrealized<br>Depreciation<br>(000)** |
| Citibank NA | USD/CNH CNH | 7.50 | Jan-26 | 7000000 | $7000 | $42 | $84 | $(41) |
| JPMorgan Chase <br>Bank NA | USD/CNH CNH | 7.50 | Feb-26 | 7620000 | 7620 | 50 | 80 | (31) |
|  |  |  |  |  |  | $92 | $164 | $(72) |

---

*CNH — Chinese Yuan Renminbi Offshore*

**Call Options Written:**

The Fund had the following call options written open at April 30, 2025:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Description** | **Strike<br>Price** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount<br>(000)** | **Value<br>(000)** | **Premiums<br>Received<br>(000)** | **Unrealized<br>Appreciation<br>(000)** |
| Citibank NA | USD/CNH CNH | 7.80 | Jan 20 | (7000000) | $7000 | $(19) | $(41) | $22 |
| JPMorgan Chase <br>Bank NA | USD/CNH CNH | 7.80 | Feb 04 | (7620000) | 7620 | (23) | (40) | 17 |
|  |  |  |  |  |  | $(42) | $(81) | $39 |

---

**Put Options Purchased:**

The Fund had the following put options purchased open at April 30, 2025:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Description** | **Strike<br>Price** | **Strike<br>Price** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount<br>(000)** | **Value<br>(000)** | **Premiums<br>Paid<br>(000)** | **Unrealized<br>Appreciation<br>(000)** |
| JPMorgan Chase <br>Bank NA | USD/INR | INR | 85.50 | Jan-29 | 9800000 | $9800 | $102 | $81 | $21 |
| JPMorgan Chase <br>Bank NA | USD/INR | INR | 85.50 | Jan-29 | 11200000 | 11200 | 116 | 95 | 21 |
|  |  |  |  |  |  |  | $218 | $176 | $42 |

---

**Put Options Written:**

The Fund had the following put options written open at April 30, 2025:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Description** | **Strike<br>Price** | **Expiration<br>Date** | **Number of<br>Contracts** | **Notional<br>Amount<br>(000)** | **Value<br>(000)** | **Premiums<br>Received<br>(000)** | **Unrealized<br>Appreciation<br>(000)** |
| Citibank NA | USD/CNH CNH | 6.80 | Jan-26 | (7000000) | $(7000) | $(28) | $(50) | $23 |
| JPMorgan Chase <br>Bank NA | USD/CNH CNH | 6.85 | Feb-26 | (7620000) | (7620) | (43) | (62) | 19 |
|  |  |  |  |  |  | $(71) | $(112) | $42 |

---

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Portfolio of Investments (cont'd)

**Futures Contracts:**

The Fund had the following futures contracts open at April 30, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Number <br>of<br>Contracts** | **Expiration<br>Date** | **Notional<br>Amount<br>(000)** | **Value<br>(000)** | **Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** |
| **Short:** | **Short:** | **Short:** | **Short:** | **Short:** | **Short:** |
| Euro-Buxl 30 yr. Bond Index (Germany) | 5 | Jun-25 | (500) | $(703) | $16 |
| German Euro-Bobl Index (Germany) | 21 | Jun-25 | (2100) | (2846) | (57) |
| German Euro-Bund Index (Germany) | 10 | Jun-25 | (1000) | (1493) | (1) |
| German Euro-Schatz Index (Germany) | 16 | Jun-25 | (1600) | (1950) | (10) |
| U.S. Treasury 2 yr. Note (United States) | 4 | Jun-25 | $(800) | (832) | (4) |
| U.S. Treasury 5 yr. Note (United States) | 51 | Jun-25 | (5100) | (5569) | (57) |
| U.S. Treasury Long Bond (United States) | 10 | Jun-25 | (1000) | (1166) | (22) |
| U.S. Treasury 10 yr. Note (United States) | 31 | Jun-25 | (3100) | (3479) | (25) |
| U.S. Treasury 10 yr. Ultra Note (United States) | 10 | Jun-25 | (1000) | (1147) | (11) |
|  |  |  |  |  | $(171) |

---

**Centrally Cleared Interest Rate Swap Agreements:**

The Fund had the following centrally cleared interest rate swap agreements open at April 30, 2025:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Swap<br>Counterparty** | **Floating Rate<br>Index** | **Pay/Receive<br>Floating Rate** | **Fixed<br>Rate** | **Payment<br>Frequency<br>Paid/<br>Received** | **Maturity<br>Date** | **Notional<br>Amount<br>(000)** | **Notional<br>Amount<br>(000)** | **Value<br>(000)** | **Upfront<br>Payment<br>Paid<br>(000)** | **Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** |
| Morgan Stanley & <br>Co. LLC | 1 Month TIIE | Pay | 8.42% | Monthly/<br>Monthly | 3/13/30 | MXN | (37300) | $56 | $— | $56 |
| Morgan Stanley & <br>Co. LLC | 3 Month JIBAR | Pay | 7.71 | Quarterly/<br>Quarterly | 6/18/30 | ZAR | (38620) | 16 |  | 16 |
| BNP Paribas <br>Suisse SA | 3 Month KLIBOR | Pay | 3.48 | Quarterly/<br>Quarterly | 6/18/30 | MYR | (105420) | 229 |  | 229 |
| BNP Paribas <br>Suisse SA | 3 Month KLIBOR | Pay | 3.49 | Quarterly/<br>Quarterly | 6/18/30 |  | (10100) | 22 |  | 22 |
| BNP Paribas <br>Suisse SA | 3 Month KLIBOR | Pay | 3.51 | Quarterly/<br>Quarterly | 6/18/30 |  | (4800) | 12 |  | 12 |
| JPMorgan Chase <br>Bank NA | 3 Month KLIBOR | Pay | 3.68 | Quarterly/<br>Quarterly | 6/19/29 |  | (45400) | 162 |  | 162 |
| Morgan Stanley & <br>Co. LLC | 3 Month KSDA | Receive | 2.81 | Quarterly/<br>Quarterly | 3/19/35 | KRW | (2042000) | (55) |  | (55) |
| Morgan Stanley & <br>Co. LLC | 3 Month KSDA | Receive | 2.79 | Quarterly/<br>Quarterly | 3/19/35 |  | (769000) | (20) |  | (20) |
| Morgan Stanley & <br>Co. LLC | 3 Month KSDA | Receive | 2.79 | Quarterly/<br>Quarterly | 3/19/35 |  | (1021000) | (27) |  | (27) |

---

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Portfolio of Investments (cont'd)

**Centrally Cleared Interest Rate Swap Agreements: (cont'd)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Swap<br>Counterparty** | **Floating Rate<br>Index** | **Pay/Receive<br>Floating Rate** | **Fixed<br>Rate** | **Payment<br>Frequency<br>Paid/<br>Received** | **Maturity<br>Date** | **Notional<br>Amount<br>(000)** | **Notional<br>Amount<br>(000)** | **Value<br>(000)** | **Upfront<br>Payment<br>Paid<br>(000)** | **Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** |
| Morgan Stanley & <br>Co. LLC | 3 Month KSDA | Receive | 2.70% | Quarterly/<br>Quarterly | 3/19/35 |  | (805000) | $(16 | $— | $(16 |
| Morgan Stanley & <br>Co. LLC | 3 Month KSDA | Receive | 2.69 | Quarterly/<br>Quarterly | 3/19/35 |  | (2018000) | (39 |  | (39 |
| Morgan Stanley & <br>Co. LLC | 3 Month KSDA | Receive | 2.69 | Quarterly/<br>Quarterly | 3/19/35 |  | (985000) | (19 |  | (19 |
| Morgan Stanley & <br>Co. LLC | 3 Month KSDA | Receive | 2.63 | Quarterly/<br>Quarterly | 3/19/35 |  | (546000) | (9 |  | (9 |
| Morgan Stanley & <br>Co. LLC | 3 Month KSDA | Pay | 2.51 | Quarterly/<br>Quarterly | 6/18/30 |  | (4695500) | 41 |  | 41 |
| Morgan Stanley & <br>Co. LLC | 3 Month KSDA | Pay | 2.57 | Quarterly/<br>Quarterly | 3/19/30 |  | (865000) | 9 |  | 9 |
| Morgan Stanley & <br>Co. LLC | 3 Month KSDA | Pay | 2.60 | Quarterly/<br>Quarterly | 3/19/30 |  | (3815000) | 42 |  | 42 |
| Morgan Stanley & <br>Co. LLC | 3 Month KSDA | Pay | 2.60 | Quarterly/<br>Quarterly | 3/19/30 |  | (1870000) | 20 |  | 20 |
| Morgan Stanley & <br>Co. LLC | 3 Month KSDA | Pay | 2.61 | Quarterly/<br>Quarterly | 3/19/30 |  | (1526000) | 17 |  | 17 |
| Morgan Stanley & <br>Co. LLC | 3 Month KSDA | Pay | 2.71 | Quarterly/<br>Quarterly | 3/19/30 |  | (1460000) | 22 |  | 22 |
| Morgan Stanley & <br>Co. LLC | 3 Month KSDA | Pay | 2.72 | Quarterly/<br>Quarterly | 3/19/30 |  | (1920000) | 29 |  | 29 |
| Morgan Stanley & <br>Co. LLC | 3 Month KSDA | Pay | 2.73 | Quarterly/<br>Quarterly | 3/19/30 |  | (3851000) | 59 |  | 59 |
| Morgan Stanley & <br>Co. LLC | 6 Month BIBOR | Pay | 6.15 | Semi-Annual/<br>Annual | 6/18/30 | HUF | (446600) | 14 |  | 14 |
| Morgan Stanley & <br>Co. LLC | 6 Month BIBOR | Pay | 6.74 | Semi-Annual/<br>Annual | 6/19/34 |  | (162150) | 31 |  | 31 |
| Morgan Stanley & <br>Co. LLC | 6 Month BIBOR | Pay | 6.87 | Semi-Annual/<br>Annual | 12/18/34 |  | (914000) | 102 |  | 102 |
| Morgan Stanley & <br>Co. LLC | 6 Month BIBOR | Pay | 6.92 | Semi-Annual/<br>Annual | 6/19/29 |  | (99867) | 21 |  | 21 |
| Morgan Stanley & <br>Co. LLC | 6 Month CLICP | Receive | 5.56 | Semi-Annual/<br>Semi-Annual | 12/20/33 | CLP | (1900000) | (22 |  | (22 |
| Morgan Stanley & <br>Co. LLC | 6 Month CLICP | Receive | 5.23 | Semi-Annual/<br>Semi-Annual | 9/20/33 |  | (1424859) | (— |  | (— |
| Morgan Stanley & <br>Co. LLC | 6 Month CLICP | Pay | 4.79 | Semi-Annual/<br>Semi-Annual | 6/21/29 |  | (2750000) | 30 |  | 30 |
| Morgan Stanley & <br>Co. LLC | 6 Month PRIBOR | Pay | 3.76 | Semi-Annual/<br>Annual | 9/18/29 | CZK | (259000) | 455 |  | 455 |

---

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Portfolio of Investments (cont'd)

**Centrally Cleared Interest Rate Swap Agreements: (cont'd)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Swap<br>Counterparty** | **Floating Rate<br>Index** | **Pay/Receive<br>Floating Rate** | **Fixed<br>Rate** | **Payment<br>Frequency<br>Paid/<br>Received** | **Maturity<br>Date** | **Notional<br>Amount<br>(000)** | **Notional<br>Amount<br>(000)** | **Value<br>(000)** | **Upfront<br>Payment<br>Paid<br>(000)** | **Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** |
| Morgan Stanley & <br>Co. LLC | 6 Month PRIBOR | Pay | 3.96% | Semi-Annual/<br>Annual | 9/20/33 |  | (49943) | $127 | $— | $127 |
| Morgan Stanley & <br>Co. LLC | 6 Month PRIBOR | Pay | 3.96 | Semi-Annual/<br>Annual | 9/20/33 |  | (34173) | 87 |  | 87 |
| Morgan Stanley & <br>Co. LLC | 6 Month PRIBOR | Pay | 3.96 | Semi-Annual/<br>Annual | 9/20/33 |  | (20700) | 53 |  | 53 |
| Morgan Stanley & <br>Co. LLC | 6 Month PRIBOR | Pay | 4.15 | Semi-Annual/<br>Annual | 9/20/28 |  | (37900) | 85 |  | 85 |
| Morgan Stanley & <br>Co. LLC | 6 Month PRIBOR | Pay | 4.33 | Semi-Annual/<br>Annual | 12/20/33 |  | (30) |  |  |  |
| Morgan Stanley & <br>Co. LLC | 6 Month WIBOR | Receive | 4.34 | Annual/<br>Semi-Annual | 6/18/35 | PLN | (15735) | (21 |  | (21 |
| Morgan Stanley & <br>Co. LLC | 6 Month WIBOR | Receive | 4.31 | Annual/<br>Semi-Annual | 6/18/35 |  | (11884) | (9 |  | (9 |
| Morgan Stanley & <br>Co. LLC | 6 Month WIBOR | Receive | 4.27 | Annual/<br>Maturity | 6/18/35 |  | (3041) | 1 |  | 1 |
| Morgan Stanley & <br>Co. LLC | 6 Month WIBOR | Pay | 5.02 | Semi-Annual/<br>Annual | 9/18/29 |  | (7600) | 130 |  | 130 |
| Morgan Stanley & <br>Co. LLC | 6 Month WIBOR | Pay | 5.16 | Semi-Annual/<br>Annual | 6/21/28 |  | (17000) | 268 |  | 268 |
| Morgan Stanley & <br>Co. LLC | 6 Month WIBOR | Pay | 5.26 | Semi-Annual/<br>Annual | 6/12/28 |  | (40000) | 668 |  | 668 |
| Morgan Stanley & <br>Co. LLC | 6 Month WIBOR | Pay | 5.42 | Semi-Annual/<br>Annual | 6/19/29 |  | (13500) | 294 |  | 294 |
| Morgan Stanley & <br>Co. LLC | BRL-CDI | Pay | 9.70 | Maturity/<br>Maturity | 1/4/27 | BRL | (20700) | (342 |  | (342 |
| Morgan Stanley & <br>Co. LLC | BRL-CDI | Pay | 9.88 | Maturity/<br>Maturity | 1/4/27 |  | (15600) | (238 |  | (238 |
| Morgan Stanley & <br>Co. LLC | BRL-CDI | Pay | 10.54 | Maturity/<br>Maturity | 1/2/29 |  | (16983) | (354 |  | (354 |
| Morgan Stanley & <br>Co. LLC | BRL-CDI | Pay | 10.65 | Maturity/<br>Maturity | 1/2/26 |  | (51283) | (318 |  | (318 |
| Morgan Stanley & <br>Co. LLC | BRL-CDI | Pay | 10.78 | Maturity/<br>Maturity | 1/4/27 |  | (7060) | (73 |  | (73 |
| Morgan Stanley & <br>Co. LLC | BRL-CDI | Pay | 11.18 | Maturity/<br>Maturity | 1/2/26 |  | (47700) | (227 |  | (227 |
| Morgan Stanley & <br>Co. LLC | BRL-CDI | Pay | 11.65 | Maturity/<br>Maturity | 1/4/27 |  | (6800) | (45 |  | (45 |

---

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Portfolio of Investments (cont'd)

**Centrally Cleared Interest Rate Swap Agreements: (cont'd)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Swap<br>Counterparty** | **Floating Rate<br>Index** | **Pay/Receive<br>Floating Rate** | **Fixed<br>Rate** | **Payment<br>Frequency<br>Paid/<br>Received** | **Maturity<br>Date** | **Notional<br>Amount<br>(000)** | **Notional<br>Amount<br>(000)** | **Value<br>(000)** | **Upfront<br>Payment<br>Paid<br>(000)** | **Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** |
| Morgan Stanley & <br>Co. LLC | BRL-CDI | Pay | 12.75% | Maturity/<br>Maturity | 1/2/29 |  | (6200) | $(30) | $— | $(30) |
| Morgan Stanley & <br>Co. LLC | BRL-CDI | Pay | 13.52 | Maturity/<br>Maturity | 1/2/29 |  | (5200) | (1) |  | (1) |
| Morgan Stanley & <br>Co. LLC | BRL-CDI | Pay | 14.78 | Maturity/<br>Maturity | 1/4/27 |  | (16670) | 44 |  | 44 |
| Morgan Stanley & <br>Co. LLC | BRL-CDI | Pay | 15.23 | Maturity/<br>Maturity | 1/4/27 |  | (16500) | 75 |  | 75 |
| Morgan Stanley & <br>Co. LLC | CNRR | Pay | 1.44 | Quarterly/<br>Quarterly | 3/19/30 | CNY | (15550) | 1 |  | 1 |
| Morgan Stanley & <br>Co. LLC | CNRR | Pay | 1.46 | Quarterly/<br>Quarterly | 3/19/30 |  | (12650) | 3 |  | 3 |
| Morgan Stanley & <br>Co. LLC | CNRR | Pay | 1.50 | Quarterly/<br>Quarterly | 3/19/30 |  | (76500) | 38 |  | 38 |
| Morgan Stanley & <br>Co. LLC | CNRR | Pay | 1.55 | Quarterly/<br>Quarterly | 6/18/30 |  | (5170) | 5 |  | 5 |
| Morgan Stanley & <br>Co. LLC | CNRR | Pay | 1.58 | Quarterly/<br>Quarterly | 3/19/30 |  | (23000) | 23 |  | 23 |
| Morgan Stanley & <br>Co. LLC | CNRR | Pay | 1.73 | Quarterly/<br>Quarterly | 12/18/29 |  | (9000) | 17 |  | 17 |
| Morgan Stanley & <br>Co. LLC | CNRR | Pay | 2.03 | Quarterly/<br>Quarterly | 9/18/29 |  | (14100) | 51 |  | 51 |
| Morgan Stanley & <br>Co. LLC | CNRR | Pay | 2.12 | Quarterly/<br>Quarterly | 6/19/29 |  | (13600) | 54 |  | 54 |
| Morgan Stanley & <br>Co. LLC | CNRR | Pay | 2.29 | Quarterly/<br>Quarterly | 9/20/28 |  | (85600) | 345 |  | 345 |
| Morgan Stanley & <br>Co. LLC | CNRR | Pay | 2.35 | Quarterly/<br>Quarterly | 3/20/29 |  | (12000) | 59 |  | 59 |
| Morgan Stanley & <br>Co. LLC | CNRR | Pay | 2.39 | Quarterly/<br>Quarterly | 12/20/28 |  | (17330) | 83 |  | 83 |
| Morgan Stanley & <br>Co. LLC | CNRR | Pay | 2.42 | Quarterly/<br>Quarterly | 12/21/27 |  | (134000) | 478 |  | 478 |
| Morgan Stanley & <br>Co. LLC | CNRR | Pay | 2.44 | Quarterly/<br>Quarterly | 12/20/28 |  | (89100) | 448 |  | 448 |
| Morgan Stanley & <br>Co. LLC | CNRR | Pay | 2.48 | Quarterly/<br>Quarterly | 9/20/28 |  | (14400) | 70 |  | 70 |

---

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Portfolio of Investments (cont'd)

**Centrally Cleared Interest Rate Swap Agreements: (cont'd)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Swap<br>Counterparty** | **Floating Rate<br>Index** | **Pay/Receive<br>Floating Rate** | **Fixed<br>Rate** | **Payment<br>Frequency<br>Paid/<br>Received** | **Maturity<br>Date** | **Notional<br>Amount<br>(000)** | **Notional<br>Amount<br>(000)** | **Value<br>(000)** | **Upfront<br>Payment<br>Paid<br>(000)** | **Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** |
| Morgan Stanley & <br>Co. LLC | CPIBR | Pay | 8.24% | Quarterly/<br>Quarterly | 6/18/30 | COP | (5911000) | $(4) | $— | $(4) |
| Morgan Stanley & <br>Co. LLC | MIBOR | Pay | 5.70 | Semi-Annual/<br>Semi-Annual | 6/18/30 | INR | (298300) | 12 |  | 12 |
| Morgan Stanley & <br>Co. LLC | MIBOR | Pay | 5.78 | Semi-Annual/<br>Semi-Annual | 6/18/30 |  | (207600) | 16 |  | 16 |
| Morgan Stanley & <br>Co. LLC | MIBOR | Pay | 5.91 | Semi-Annual/<br>Semi-Annual | 12/18/29 |  | (400000) | 45 |  | 45 |
| Morgan Stanley & <br>Co. LLC | MIBOR | Pay | 5.93 | Semi-Annual/<br>Semi-Annual | 3/19/30 |  | (793000) | 118 |  | 118 |
| Morgan Stanley & <br>Co. LLC | MIBOR | Pay | 5.94 | Semi-Annual/<br>Semi-Annual | 12/18/29 |  | (600000) | 75 |  | 75 |
| Morgan Stanley & <br>Co. LLC | MIBOR | Pay | 5.95 | Semi-Annual/<br>Semi-Annual | 3/19/30 |  | (914000) | 144 |  | 144 |
| Morgan Stanley & <br>Co. LLC | MIBOR | Pay | 5.95 | Semi-Annual/<br>Semi-Annual | 6/18/30 |  | (390000) | 65 |  | 65 |
| Morgan Stanley & <br>Co. LLC | MIBOR | Pay | 6.01 | Semi-Annual/<br>Semi-Annual | 12/18/29 |  | (334000) | 54 |  | 54 |
| Morgan Stanley & <br>Co. LLC | MIBOR | Pay | 6.02 | Semi-Annual/<br>Semi-Annual | 3/19/30 |  | (304940) | 59 |  | 59 |
| Morgan Stanley & <br>Co. LLC | MIBOR | Pay | 6.03 | Semi-Annual/<br>Semi-Annual | 12/18/29 |  | (430000) | 74 |  | 74 |
| Morgan Stanley & <br>Co. LLC | MIBOR | Pay | 6.07 | Semi-Annual/<br>Semi-Annual | 3/19/30 |  | (139500) | 31 |  | 31 |
| Morgan Stanley & <br>Co. LLC | MIBOR | Pay | 6.07 | Semi-Annual/<br>Semi-Annual | 3/19/30 |  | (266000) | 59 |  | 59 |
| Morgan Stanley & <br>Co. LLC | MIBOR | Pay | 6.26 | Semi-Annual/<br>Semi-Annual | 3/20/29 |  | (970400) | 265 |  | 265 |
| Morgan Stanley & <br>Co. LLC | MIBOR | Pay | 6.28 | Semi-Annual/<br>Semi-Annual | 12/18/29 |  | (312000) | 95 |  | 95 |
| Morgan Stanley & <br>Co. LLC | SORA | Pay | 1.96 | Semi-Annual/<br>Semi-Annual | 6/18/30 | SGD | (2280) | 6 |  | 6 |
| Morgan Stanley & <br>Co. LLC | TELBOR | Pay | 3.88 | Quarterly/<br>Annual | 6/18/30 | ILS | (7380) | 3 |  | 3 |
| Morgan Stanley & <br>Co. LLC | THOR | Pay | 1.41 | Quarterly/<br>Quarterly | 6/18/30 | THB | (525800) | (20) |  | (20) |
| Morgan Stanley & <br>Co. LLC | THOR | Pay | 1.96 | Quarterly/<br>Quarterly | 3/19/30 |  | (107000) | 80 |  | 80 |

---

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Portfolio of Investments (cont'd)

**Centrally Cleared Interest Rate Swap Agreements: (cont'd)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Swap<br>Counterparty** | **Floating Rate<br>Index** | **Pay/Receive<br>Floating Rate** | **Fixed<br>Rate** | **Payment<br>Frequency<br>Paid/<br>Received** | **Maturity<br>Date** | **Notional<br>Amount<br>(000)** | **Value<br>(000)** | **Upfront<br>Payment<br>Paid<br>(000)** | **Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** |
| Morgan Stanley & <br>Co. LLC | THOR | Pay | 2.68% | Quarterly/<br>Quarterly | 6/21/33 | (120000) | $282 | $— | $282 |
| Morgan Stanley & <br>Co. LLC | THOR | Pay | 2.70 | Quarterly/<br>Quarterly | 6/19/34 | (68480) | 168 |  | 168 |
|  |  |  |  |  |  |  | $4658 | $— | $4658 |

---

ALL — Albanian Lek

AMD — Armenian Dram

ARS — Argentine Peso

BRL — Brazilian Real

CLP — Chilean Peso

CNH — Chinese Yuan Renminbi Offshore

CNY — Chinese Yuan Renminbi

COP — Colombian Peso

CZK — Czech Koruna

DOP — Dominican Peso

EGP — Egyptian Pound

EUR — Euro

HUF — Hungarian Forint

IDR — Indonesian Rupiah

ILS — Israeli Shekel

INR — Indian Rupee

KRW — South Korean Won

KZT — Kazakhstan Tenge

LKR — Sri Lankan Rupee

MXN — Mexican Peso

MYR — Malaysian Ringgit

NGN — Nigerian Naira

PEN — Peruvian Nuevo Sol

PLN — Polish Zloty

PYG — Paraguay Guarani

RON — Romanian New Leu

RSD — Serbia Dinar

RUB — Russian Ruble

SGD — Singapore Dollar

THB — Thai Baht

TRY — Turkish Lira

TWD — Taiwan Dollar

USD — United States Dollar

UYU — Uruguay Peso

UZS — Uzbekistan Som

ZAR — South African Rand

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Portfolio of Investments (cont'd)

**Portfolio Composition**

---

| | | |
|:---|:---|:---|
| **Classification** | **Percentage of<br>Total Investments** | **Percentage of<br>Total Investments** |
| Sovereign | 82.9 | % |
| Short-Term Investments | 10.0 |  |
| Corporate Bonds | 5.0 |  |
| Other\* | 2.1 |  |
| Total Investments | 100.0 | %\*\* |

---

\* Industries and/or investment types representing less than 5% of total investments.

\*\* Does not include open futures contracts with a value of approximately $19,185,000 and net unrealized depreciation of approximately $171,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $4,717,000. Also does not include open swap agreements with net unrealized appreciation of approximately $4,658,000.

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Financial Statements

---

| | |
|:---|:---|
| Statement of Assets and Liabilities | **April 30, 2025<br>(000)** |
| **Assets:** | **Assets:** |
| Investments in Securities of Unaffiliated Issuers, at Value (Cost $347,367) | $342133 |
| Investment in Security of Affiliated Issuer, at Value (Cost $19,693) | 19693 |
| Total Investments in Securities, at Value (Cost $367,060) | 361826 |
| Foreign Currency, at Value (Cost $6,579) | 6717 |
| Unrealized Appreciation on Foreign Currency Forward Exchange Contracts | 13162 |
| Cash | 324 |
| Interest Receivable | 8514 |
| Receivable for Investments Sold | 1930 |
| Unrealized Appreciation on Swap Agreements | 425 |
| Receivable for Variation Margin on Futures Contracts | 294 |
| Receivable from Affiliate | 75 |
| Tax Reclaim Receivable | 11 |
| Dividends Receivable | 1 |
| Other Assets | 72 |
| **Total Assets** | 393351 |
| **Liabilities:** | **Liabilities:** |
| Payable for Line of Credit | 40171 |
| Unrealized Depreciation on Foreign Currency Forward Exchange Contracts | 8445 |
| Due to Broker | 3780 |
| Deferred Capital Gain Country Tax | 404 |
| Payable for Advisory Fees | 308 |
| Payable for Variation Margin on Swap Agreements | 193 |
| Payable for Investments Purchased | 147 |
| Payable for Custodian Fees | 146 |
| Options Written, at Value (Premiums Received $193) | 113 |
| Payable for Professional Fees | 52 |
| Payable for Administration Fees | 25 |
| Payable for Stockholder Servicing Agent Fees | 3 |
| Other Liabilities | 38 |
| **Total Liabilities** | 53825 |
| **Net Assets** | **Net Assets** |
| Applicable to 64,456,047 Issued and Outstanding $0.01 Par Value Shares (100,000,000 Shares Authorized) | $339526 |
| **Net Asset Value Per Share** | $5.27 |
| **Net Assets Consist of:** | **Net Assets Consist of:** |
| Common Stock | $645 |
| Paid-in-Capital | 508774 |
| Total Accumulated Loss | (169893) |
| **Net Assets** | $339526 |

---

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Financial Statements (cont'd)

---

| | |
|:---|:---|
| Statement of Operations | **Six Months Ended<br>April 30, 2025<br>(000)** |
| **Investment Income:** | **Investment Income:** |
| Interest from Securities of Unaffiliated Issuers (Net of $1,143 of Foreign Taxes Withheld) | $22717 |
| Dividends from Security of Affiliated Issuer (Note F) | 383 |
| **Total Investment Income** | 23100 |
| **Expenses:** | **Expenses:** |
| Advisory Fees (Note B) | 1942 |
| Interest Expense on Line of Credit (Note G) | 1744 |
| Custodian Fees (Note D) | 282 |
| Administration Fees (Note C) | 155 |
| Line of Credit Commitment Fees (Note G) | 106 |
| Professional Fees | 89 |
| Stockholder Reporting Expenses | 31 |
| Stockholder Servicing Agent Fees | 8 |
| Directors' Fees and Expenses | 4 |
| Other Expenses | 22 |
| **Total Expenses** | 4383 |
| Rebate from Morgan Stanley Affiliate (Note F) | (17) |
| **Net Expenses** | 4366 |
| **Net Investment Income** | 18734 |
| **Realized Gain (Loss):** | **Realized Gain (Loss):** |
| Investments Sold (Net of $3 of Capital Gain Country Tax) | (8983) |
| Foreign Currency Forward Exchange Contracts | (1169) |
| Foreign Currency Transaction | 223 |
| Futures Contracts | (152) |
| Options Written | 38 |
| Swap Agreements | (810) |
| **Net Realized Loss** | (10853) |
| **Change in Unrealized Appreciation (Depreciation):** | **Change in Unrealized Appreciation (Depreciation):** |
| Investments (Net of Increase in Deferred Capital Gain Country Tax of $42) | 6920 |
| Foreign Currency Forward Exchange Contracts | 4774 |
| Foreign Currency Translation | 360 |
| Futures Contracts | (311) |
| Options Written | 98 |
| Swap Agreements | 4862 |
| **Net Change in Unrealized Appreciation (Depreciation)** | 16703 |
| **Net Realized Loss and Change in Unrealized Appreciation (Depreciation)** | 5850 |
| **Net Increase in Net Assets Resulting from Operations** | $24584 |

---

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025**

Financial Statements (cont'd)

---

| | | |
|:---|:---|:---|
| Statements of Changes in Net Assets | **Six Months Ended<br>April 30, 2025<br>(unaudited)<br>(000)** | **Year Ended<br>October 31, 2024<br>(000)** |
| **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** | **Increase (Decrease) in Net Assets:** |
| **Operations:** | **Operations:** | **Operations:** |
| Net Investment Income | $18734 | $33557 |
| Net Realized Loss | (10853) | (17081) |
| Net Change in Unrealized Appreciation (Depreciation) | 16703 | 20767 |
| **Net Increase in Net Assets Resulting from Operations** | 24584 | 37243 |
| Dividends and Distributions to Stockholders | (20626) | (19800) |
| Paid-in-Capital |  | (9324) |
| **Capital Share Transactions:** | **Capital Share Transactions:** | **Capital Share Transactions:** |
| Repurchase of Shares (0 and 802,439 shares) |  | (3782) |
| **Net Decrease in Net Assets Resulting from Capital Share Transactions** |  | (3782) |
| **Total Increase** | 3958 | 4337 |
| **Net Assets:** | **Net Assets:** | **Net Assets:** |
| Beginning of Period | 335568 | 331231 |
| **End of Period** | $339526 | $335568 |

---

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Financial Statements (cont'd)

---

| | |
|:---|:---|
| Statement of Cash Flows | **Six Months Ended<br>April 30, 2025<br>(000)** |
| **Cash Flows From Operating Activities:** | **Cash Flows From Operating Activities:** |
| Net Increase in Net Assets Resulting from Operations | $24584 |
| **Adjustments to Reconcile Net Increase (Decrease) in Net Assets from Operations to<br>Net Cash Provided by (Used for) Operating Activities:** | **Adjustments to Reconcile Net Increase (Decrease) in Net Assets from Operations to<br>Net Cash Provided by (Used for) Operating Activities:** |
| Proceeds from (Payments on) Sales and Maturities of Long-Term Investments | 118860 |
| Proceeds from (Payments on) Foreign Currency Forward Exchange Contracts, Foreign Currency Transactions, <br>Futures Contracts and Swap Agreements | 2829 |
| Proceeds from (Payments on) Purchases of Long-Term Investments | (125663) |
| Net (Increase) Decrease in Short-Term Investments | 21888 |
| Net (Increase) Decrease in Receivable for Variation Margin on Futures Contracts and Swap Agreements | (67) |
| Net (Increase) Decrease in Interest Receivable | (1402) |
| Net (Increase) Decrease in Receivables Related to Operations | 1548 |
| Net Increase (Decrease) in Advisory Fees Payable | (18) |
| Net Increase (Decrease) in Interest Payable | (35) |
| Net Increase (Decrease) in Payables Related to Operations | 825 |
| Net Realized (Gain) Loss for Investments Sold, Foreign Currency Forward Exchange Contracts, <br>Foreign Currency Translation, Futures Contracts, Options Written and Swap Agreements | 10853 |
| Net Change in Unrealized Appreciation (Depreciation) for Investments, Foreign Currency Forward Exchange <br>Contracts, Foreign Currency Translation, Futures Contracts, Options Written and Swap Agreements | (16703) |
| Accretion/Amortization of Discounts and Premiums | (6724) |
| Net Cash Provided by (Used for) Operating Activities | 30775 |
| **Cash Flows From Financing Activities:** | **Cash Flows From Financing Activities:** |
| Cash Paid for Line of Credit | (48500) |
| Cash Received for Line of Credit | 40000 |
| Cash Distribution Paid | (20626) |
| Net Cash Provided by (Used for) Financing Activities | (29126) |
| Net Increase (Decrease) in Cash | 1649 |
| **Cash and Foreign Currency at Beginning of Period\*** | 5392 |
| **Cash and Foreign Currency at End of Period\*** | $7041 |
| **Supplemental Disclosure of Cash Flow Information:** | **Supplemental Disclosure of Cash Flow Information:** |
| Interest Paid on Line of Credit during the Period | $1779 |

---

\* Includes cash of approximately $0 and $324,000, foreign currency of $6,043,000 and $6,717,000 and bank overdraft of $651,000 and $0 as of October 31, 2024 and April 30, 2025, respectively.

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025**

Financial Highlights

***Selected Per Share Data and Ratios***

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Year Ended October 31,** | **Year Ended October 31,** | **Year Ended October 31,** | **Year Ended October 31,** | **Year Ended October 31,** |
| | **Six Months Ended<br>April 30, 2025**<br>**(unaudited)** | **2024** | **2023** | **2022** | **2021** | **2020** |
| **Net Asset Value, Beginning of Period** | $5.21 | $5.08 | $4.82 | $6.44 | $6.75 | $7.63 |
| Net Investment Income<sup>(1)</sup> | 0.29 | 0.52 | 0.32 | 0.30 | 0.31 | 0.37 |
| Net Realized and Unrealized Gain (Loss) | 0.09 | 0.05 | 0.25 | (1.59) | (0.23) | (0.79) |
| Total from Investment Operations | 0.38 | 0.57 | 0.57 | (1.29) | 0.08 | (0.42) |
| Distributions from and/or in Excess of: | Distributions from and/or in Excess of: | Distributions from and/or in Excess of: | Distributions from and/or in Excess of: | Distributions from and/or in Excess of: | Distributions from and/or in Excess of: | Distributions from and/or in Excess of: |
| Net Investment Income | (0.32) | (0.31) | (0.04) |  | (0.14) |  |
| Paid-in-Capital |  | (0.14) | (0.28) | (0.33) | (0.25) | (0.46) |
| Total Distributions | (0.32) | (0.45) | (0.32) | (0.33) | (0.39) | (0.46) |
| Anti-Dilutive Effect of Share Repurchase Program |  | 0.01 | 0.01 | 0.00<br><sup>(2)</sup> |  |  |
| **Net Asset Value, End of Period** | $5.27 | $5.21 | $5.08 | $4.82 | $6.44 | $6.75 |
| **Per Share Market Value, End of Period** | $4.82 | $4.65 | $4.33 | $4.04 | $5.77 | $5.59 |
| **TOTAL INVESTMENT RETURN:<sup>(3)</sup>** | **TOTAL INVESTMENT RETURN:<sup>(3)</sup>** | **TOTAL INVESTMENT RETURN:<sup>(3)</sup>** | **TOTAL INVESTMENT RETURN:<sup>(3)</sup>** | **TOTAL INVESTMENT RETURN:<sup>(3)</sup>** | **TOTAL INVESTMENT RETURN:<sup>(3)</sup>** | **TOTAL INVESTMENT RETURN:<sup>(3)</sup>** |
| Market Value | 11.00%<sup>(4)</sup> | 17.91% | 14.77% | (24.96)% | 9.98% | (13.13)% |
| Net Asset Value | 8.11%<sup>(4)</sup> | 12.83% | 12.64% | (19.78)% | 1.66% | (4.45)% |
| **RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:** | **RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:** | **RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:** | **RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:** | **RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:** | **RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:** | **RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA:** |
| **Net Assets, End of Period (Thousands)** | $339526 | $335568 | $331231 | $318061 | $425893 | $446354 |
| Ratio of Expenses to Average Net Assets | 2.66%<sup>(5)(6)</sup> | 2.20%<sup>(6)</sup> | 2.32%<sup>(6)</sup> | 2.12%<sup>(6)</sup> | 1.90%<sup>(6)</sup> | 2.26%<sup>(6)</sup> |
| Ratio of Expenses to Average Net Assets <br>Excluding Interest Expense | 1.59%<sup>(5)(6)</sup> | 1.49%<sup>(6)</sup> | 1.47%<sup>(6)</sup> | 1.55%<sup>(6)</sup> | 1.53%<sup>(6)</sup> | 1.57%<sup>(6)</sup> |
| Ratio of Net Investment Income to Average <br>Net Assets | 11.39%<sup>(5)(6)</sup> | 9.60%<sup>(6)</sup> | 6.05%<sup>(6)</sup> | 5.34%<sup>(6)</sup> | 4.45%<sup>(6)</sup> | 5.31%<sup>(6)</sup> |
| Ratio of Rebate from Morgan Stanley Affiliates <br>to Average Net Assets | 0.01%<sup>(5)</sup> | 0.01% | 0.01% | 0.00%<sup>(7)</sup> | 0.00%<sup>(7)</sup> | 0.01% |
| Portfolio Turnover Rate | 35%<sup>(4)</sup> | 88% | 56% | 67% | 42% | 41% |

---

(1) Per share amount is based on average shares outstanding.

(2) Amount is less than $0.005 per share.

(3) Total investment return based on net asset value per share reflects the effects of changes in net asset value on the performance of the Fund during each period, and assumes dividends and distributions, if any, were reinvested. This percentage is not an indication of the performance of a stockholder's investment in the Fund based on market value due to differences between the market price of the stock and the net asset value per share of the Fund. Total returns are based upon the market value and net asset value on the last business day of each period.

(4) Not annualized.

(5) Annualized.

(6) The Ratio of Expenses and Ratio of Net Investment Income reflect the rebate of certain Fund expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

(7) Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Notes to Financial Statements

The Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. (the "Fund") was incorporated in Maryland on January 25, 2007 and is registered as a non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the "Act"). The Fund's primary investment objective is to seek a high level of current income, with a secondary investment objective of long-term capital appreciation.

The Fund applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the Fund's Statement of Assets and Liabilities through the date that the financial statements were issued.

**A. Significant Accounting Policies:** The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Fund in the preparation of its financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results may differ from those estimates.

**1. Security Valuation:** (1) Fixed income securities may be valued by an outside pricing service/vendor approved by the Fund's Board of Directors ("the Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Limited ("MSIM Limited")(the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor does not reflect the security's fair value or the pricing service/vendor or exchange is unable to provide a price, prices from reputable

brokers/dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from reputable brokers/dealers; (2) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, including circumstances under which the Adviser or the Sub-Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures approved by and under the general supervision of the Directors. Each business day, the Fund uses a third-party pricing service approved by the Directors to assist with the valuation of foreign equity securities. Events occurring after the close of trading on foreign exchanges may result in adjustments to the valuation of foreign securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments that have a strong correlation to the fair-valued securities to more accurately reflect their fair value as of the close of regular trading on the NYSE; (3) listed options are valued at the last reported sales price on the exchange on which they are listed (or at the exchange official closing price if such exchange reports an official closing price). If an official closing price or last reported sales price is unavailable, the listed option should be fair valued at the mean between its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/vendor; (4) futures are valued at the settlement price on the exchange on which they trade or, if a settlement price is unavailable, at the last sale price on the exchange; (5) over-the-counter ("OTC") swaps may be valued by an outside pricing service approved by the Directors or quotes from a broker/dealer. Swaps cleared on a clearinghouse or exchange may be valued using the closing price provided by the clearinghouse or exchange;

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Notes to Financial Statements (cont'd)

(6) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of the close of the NYSE; and (7) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

&nbsp;&nbsp;&nbsp;&nbsp;In connection with Rule 2a-5 of the Act, the Directors have designated the Fund's Adviser as its valuation designee. The valuation designee has responsibility for determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Fund's Adviser, as valuation designee, has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Fund's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

**2. Fair Value Measurement:** Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs); and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or

liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

• Level 3 – significant unobservable inputs including the Fund's own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer's financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Notes to Financial Statements (cont'd)

&nbsp;&nbsp;&nbsp;&nbsp;The following is a summary of the inputs used to value the Fund's investments as of April 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
| **Fixed Income Securities** | **Fixed Income Securities** | **Fixed Income Securities** | **Fixed Income Securities** | **Fixed Income Securities** |
| Corporate <br>Bonds | $— | $18233 | $— | $18233 |
| Loan <br>Participation <br>Notes |  |  | 3732 | 3732 |
| Sovereign |  | 299551 |  | 299551 |
| **Total Fixed <br>Income <br>Securities** | **—** | **317784** | **3732** | **321516** |
| **Warrants** |  | 3823 |  | 3823 |
| **Call Options <br>Purchased** |  | 92 |  | 92 |
| **Put Options <br>Purchased** |  | 218 |  | 218 |
| **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** | **Short-Term Investments** |
| U.S. Treasury <br>Security |  | 9889 |  | 9889 |
| Investment <br>Company | 19693 |  |  | 19693 |
| Sovereign |  | 6595 |  | 6595 |
| **Total <br>Short-Term <br>Investments** | **19693** | **16484** | **—** | **36177** |
| **Foreign <br>Currency <br>Forward <br>Exchange <br>Contracts** |  | 13162 |  | 13162 |
| **Future <br>Contract** | 16 |  |  | 16 |
| **Centrally <br>Cleared <br>Interest <br>Rate Swap <br>Agreements** |  | 6547 |  | 6547 |
| **Total Assets** | **19709** | **358110** | **3732** | **381551** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment Type** | **Level 1<br>Unadjusted<br>quoted<br>prices<br>(000)** | **Level 2<br>Other<br>significant<br>observable<br>inputs<br>(000)** | **Level 3<br>Significant<br>unobservable<br>inputs<br>(000)** | **Total<br>(000)** |
| **Liabilities:** | **Liabilities:** | **Liabilities:** | **Liabilities:** | **Liabilities:** |
| **Call Options <br>Written** | $— | $(42) | $— | $(42) |
| **Put Options <br>Written** |  | (71) |  | (71) |
| **Foreign <br>Currency <br>Forward <br>Exchange <br>Contracts** |  | (8445) |  | (8445) |
| **Futures <br>Contracts** | (187) |  |  | (187) |
| **Centrally <br>Cleared <br>Interest <br>Rate Swap <br>Agreements** |  | (1889) |  | (1889) |
| **Total Liabilities** | **(187)** | **(10447)** | **—** | **(10634)** |
| **Total** | $**19522** | $**347663** | $**3732** | $**370917** |

---

&nbsp;&nbsp;&nbsp;&nbsp;Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

---

| | |
|:---|:---|
| | **Fixed <br>Income <br>(000)** |
| **Beginning Balance** | $5941 |
| Purchases |  |
| Sales | (1989) |
| Amortization of discount | 36 |
| Transfers in |  |
| Transfers out |  |
| Corporate actions |  |
| Change in unrealized appreciation (depreciation) | (6) |
| Realized gains (losses) | (250) |
| **Ending Balance** | $3732 |
| Net change in unrealized appreciation <br>(depreciation) from investments still held as of <br>April 30, 2025 | $(6) |

---

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Notes to Financial Statements (cont'd)

&nbsp;&nbsp;&nbsp;&nbsp;The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of April 30, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Fair<br>Value at<br>April 30,<br>2025<br>(000)** | **Valuation<br>Technique** | **Unobservable<br>Input** | **Range/<br>Weighted Average** | **Impact to<br>Valuation from an<br>Increase in Input\*** |
| Fixed Income | $3732 | Matrix Pricing | Adjusted Credit <br>Spread to<br>the Central Bank<br>of Uzbekistan<br>Quoted Policy<br>Rate | 5.06% - 6.05%/5.59% | Decrease |

---

\* Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.

**3. Foreign Currency Translation and Foreign Investments:** The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars as follows:

— investments, other assets and liabilities at the prevailing rate of exchange on the valuation date;

— investment transactions and investment income at the prevailing rates of exchange on the dates of such transactions.

&nbsp;&nbsp;&nbsp;&nbsp;Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities held at period end. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of securities sold during the period. Accordingly, realized and unrealized foreign currency gains (losses) on investments in securities are

included in the reported net realized and unrealized gains (losses) on investment transactions and balances. However, pursuant to U.S. federal income tax regulations, gains and losses from certain foreign currency transactions and the foreign currency portion of gains and losses realized on sales and maturities of foreign denominated debt securities are treated as ordinary income for U.S. federal income tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from foreign currency forward exchange contracts, disposition of foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. The change in unrealized currency gains (losses) on foreign currency translations for the period is reflected in the Statement of Operations.

&nbsp;&nbsp;&nbsp;&nbsp;A significant portion of the Fund's net assets consist of securities of issuers located in emerging markets, which are

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Notes to Financial Statements (cont'd)

denominated in foreign currencies. Such securities may be concentrated in a limited number of countries and regions and may vary throughout the year. Changes in currency exchange rates will affect the value of securities and investment income from foreign currency denominated securities. Emerging market securities are often subject to greater price volatility, limited capitalization and liquidity, and higher rates of inflation than securities of companies based in the U.S. In addition, emerging market issuers may be subject to substantial governmental involvement in the economy and greater social, economic and political uncertainty.

**4. Derivatives:** The Fund may, but is not required to, use derivative instruments for a variety of purposes, including hedging, risk management, portfolio management or to earn income. To the extent the Fund invests in derivative instruments that the Adviser believes have economic characteristics similar to such securities, including, but not limited to, emerging market currency derivatives and swap agreements, such investments will be counted for purposes of meeting the Fund's 80% policy. Derivatives are financial instruments whose value is based, in part, on the value of an underlying asset, interest rate, index or financial instrument. Prevailing interest rates and volatility levels, among other things, also affect the value of derivative instruments. A derivative instrument often has risks similar to its underlying asset and may have additional risks, including imperfect correlation between the value of the derivative and the underlying asset, risks of default by the counterparty to certain transactions, magnification of losses incurred due to changes in the market value of the securities, instruments, indices or interest rates to which the derivative instrument relates, risks that the transactions may not be liquid, risks arising from margin and payment requirements, risks arising from mispricing or valuation complexity and operational and legal risks. The use of

derivatives involves risks that are different from, and possibly greater than, the risks associated with other portfolio investments. Derivatives may involve the use of highly specialized instruments that require investment techniques and risk analyses different from those associated with other portfolio investments. All of the Fund's holdings, including derivative instruments, are marked-to-market each day with the change in value reflected in unrealized appreciation (depreciation). Upon disposition, a realized gain or loss is recognized.

&nbsp;&nbsp;&nbsp;&nbsp;Certain derivative transactions may give rise to a form of leverage. Leverage magnifies the potential for gain and the risk of loss. Leverage associated with derivative transactions may cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or may cause the Fund to be more volatile than if the Fund had not been leveraged. Although the Adviser seeks to use derivatives to further the Fund's investment objectives, there is no assurance that the use of derivatives will achieve this result.

&nbsp;&nbsp;&nbsp;&nbsp;Following is a description of the derivative instruments and techniques that the Fund used during the period and their associated risks:

&nbsp;&nbsp;&nbsp;&nbsp;**Options:** With respect to options, the Fund is subject to equity risk, interest rate risk and foreign currency exchange risk in the normal course of pursuing its investment objectives. If the Fund buys an option, it buys a legal contract giving it the right to buy or sell a specific amount of the underlying instrument or foreign currency, or futures contract on the underlying instrument or foreign currency, at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium paid by the Fund. The Fund may purchase and/or sell put and call options. Purchasing call options tends to increase the Fund's exposure to the underlying (or similar) instrument.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Notes to Financial Statements (cont'd)

Purchasing put options tends to decrease the Fund's exposure to the underlying (or similar) instrument. When entering into purchased option contracts, the Fund bears the risk of interest or exchange rates or securities prices moving unexpectedly, in which case, the Fund may not achieve the anticipated benefits of the purchased option contracts; however the risk of loss is limited to the premium paid. Purchased options are reported as part of "Total Investments in Securities" in the Statement of Assets and Liabilities. Upon the exercise or closing of a purchased call option, the premium paid is added to the cost of the security or financial instrument purchased. Upon the exercise or closing of a purchased put option, the premium paid is offset against the proceeds on the sale of the underlying security or financial instrument in order to determine the realized gain or loss on investments. As the buyer of a call option, the Fund pays the premium to the option writer and has the right to purchase the underlying security from the option writer at the exercise price. If the market price of the underlying security rises above the exercise price, the Fund could exercise the option and acquire the underlying security at a below-market price, which could result in a gain to the Fund, minus the premium paid. As the buyer of a put option, the Fund pays the premium to the option writer and has the right to sell the underlying security to the option writer at the exercise price. If the market price of the underlying security declines below the exercise price, the Fund could exercise the option and sell the underlying security at an above-market price, which could result in a gain to the Fund, minus the premium paid. Premium paid for purchasing options which expired are treated as realized losses. The Fund may write call and put options on stock indexes, futures, securities or currencies it owns or in which it may invest. Writing put options tend to increase the Fund's exposure to the underlying instrument. Writing call

options tend to decrease the Fund's exposure to the underlying instruments. When the Fund writes a call or put option, an amount equal to the premium received is recorded as a liability. Any liability recorded is subsequently adjusted to reflect the current value of the options written. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or are closed are added to or offset against the proceeds or amount paid on the transaction to determine the net realized gain or loss. The Fund as a writer of an option has no control over whether the underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. When options are purchased OTC, the Fund bears the risk that the counterparty that wrote the option will be unable or unwilling to perform its obligations under the option contract. Options may also be illiquid and the Fund may have difficulty closing out its position. A decision as to whether, when and how to use options involves the exercise of skill and judgment and even a well-conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile and the use of options can lower total returns.

&nbsp;&nbsp;&nbsp;&nbsp;**Futures:** A futures contract is a standardized, exchange-traded agreement to buy or sell a specific quantity of an underlying asset, reference rate or index at a specific price at a specific future time. The value of a futures contract tends to increase and decrease in tandem with the value of the underlying instrument. Depending on the terms of the particular contract, futures contracts are settled through either physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. During the period the

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Notes to Financial Statements (cont'd)

futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (the variation margin) and are recorded as unrealized gains or losses by the Fund. Gains (losses) are realized upon the expiration or closing of the futures contract. A decision as to whether, when and how to use futures contracts involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures contracts can be highly volatile, using futures contracts can lower total return and the potential loss from futures contracts can exceed the Fund's initial investment in such contracts. No assurance can be given that a liquid market will exist for any particular futures contract at any particular time.

&nbsp;&nbsp;&nbsp;&nbsp;**Foreign Currency Forward Exchange Contracts:** In connection with its investments in foreign securities and the Fund also entered into contracts with banks and brokers/dealers to purchase or sell foreign currencies at a future date. A foreign currency forward exchange contract ("currency contract") is a negotiated agreement between the contracting parties to exchange a specified amount of currency at a specified future time at a specified rate. The rate can be higher or lower than the spot rate between the currencies that are the subject of the contract. Currency contracts may be used to protect against uncertainty in the level of future foreign currency exchange rates or to gain or modify exposure to a particular currency. To the extent hedged by the use of currency contracts, the precise matching of the currency contract amounts and the value of the securities involved will not generally be possible because the future value of such securities in foreign currencies will change as a consequence of market movements in the value of those securities between the date on which the contract is entered into and the date it

matures. Furthermore, such transactions may reduce or preclude the opportunity for gain if the value of the currency should move in the direction opposite to the position taken. There is additional risk to the extent that currency contracts create exposure to currencies in which the Fund's securities are not denominated. Unanticipated changes in currency prices may result in poorer overall performance for the Fund than if it had not entered into such contracts. The use of currency contracts involves the risk of loss from the insolvency or bankruptcy of the counterparty to the contract or the failure of the counterparty to make payments or otherwise comply with the terms of the contract. A currency contract is marked-to-market daily and the change in market value is recorded by the Fund as unrealized gain or loss. The Fund records realized gains (losses) when the currency contract is closed equal to the difference between the value of the currency contract at the time it was opened and the value at the time it was closed.

&nbsp;&nbsp;&nbsp;&nbsp;**Swaps:** The Fund may enter into OTC swap contracts or cleared swap transactions. A swap contract is an agreement between two parties pursuant to which the parties exchange payments at specified dates on the basis of a specified notional amount, with the payments calculated by reference to specified securities, indices, reference rates, currencies or other instruments. Typically swap agreements provide that when the period payment dates for both parties are the same, the payments are made on a net basis (i.e., the two payment streams are netted out, with only the net amount paid by one party to the other). The Fund's obligations or rights under a swap contract entered into on a net basis will generally be equal only to the net amount to be paid or received under the agreement, based on the relative values of the positions held by each party. Cleared swap transactions may help reduce counterparty credit risk. In a cleared swap, the Fund's ultimate counterparty is a

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Notes to Financial Statements (cont'd)

clearinghouse rather than a swap dealer, bank or other financial institution. OTC swap agreements are not entered into or traded on exchanges and often there is no central clearing or guaranty function for OTC swaps. These OTC swaps are often subject to credit risk or the risk of default or non-performance by the counterparty. Both OTC and cleared swaps could result in losses if interest rates, foreign currency exchange rates or other factors are not correctly anticipated by the Fund or if the reference index, security or investments do not perform as expected. During the period swap agreements are open, payments are received from or made to the counterparty or clearing-house based on changes in the value of the contract or variation margin, respectively. The Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulatory developments require the clearing and exchange-trading of certain standardized swap transactions. Mandatory exchange-trading and clearing is occurring on a phased-in basis based on the type of market participant and U.S. Commodities Futures Trading Commission ("CFTC") approval of contracts for central clearing and exchange trading.

&nbsp;&nbsp;&nbsp;&nbsp;The Fund may enter into interest rate swaps which is an agreement between two parties to exchange their respective commitments to pay or receive interest. Interest rate swaps are generally entered into on a net basis. Interest rate swaps do not involve the delivery of securities, other underlying assets, or principal. Accordingly, the risk of market loss with respect to interest rate swaps is typically limited to the net amount of interest payments that the Fund is contractually obligated to make.

&nbsp;&nbsp;&nbsp;&nbsp;When the Fund has an unrealized loss on an OTC swap agreement, the Fund has instructed the custodian to pledge cash or liquid securities as collateral with a value approximately equal to the amount of the unrealized loss. Collateral pledges are monitored and subsequently adjusted

if and when the swap valuations fluctuate. If applicable, cash collateral is included with "Due from (to) Broker" in the Statement of Assets and Liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;Upfront payments paid or received by the Fund will be reflected as an asset or liability, respectively, in the Statement of Assets and Liabilities. Changes in market value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statement of Operations. For OTC swaps once the interim payments are settled in cash, the net amount is recorded as realized gain (loss) on swap agreement in the the Statement Operations, in addition to any realized gains (loss) recorded upon the termination of swap agreements.

&nbsp;&nbsp;&nbsp;&nbsp;FASB ASC 815, "Derivatives and Hedging" ("ASC 815"), is intended to improve financial reporting about derivative instruments by requiring enhanced disclosures to enable investors to better understand how and why the Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund's financial position and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;The following tables set forth the fair value of the Fund's derivative contracts by primary risk exposure as of April 30, 2025:

---

| | | | |
|:---|:---|:---|:---|
| | **Asset Derivatives<br>Statement of Assets and<br>Liabilities Location** | **Primary Risk<br>Exposure** | **Value<br>(000)** |
| Foreign Currency<br>Forward Exchange<br>Contracts | Unrealized Appreciation<br>on Foreign Currency<br>Forward Exchange<br>Contracts | <br>Currency Risk | $13162 |
| Futures Contracts | Variation Margin on<br>Futures Contracts | Interest Rate <br>Risk | 16<br> (a) |
| Swap Agreements | Variation Margin on<br>Swap Agreements | Interest Rate <br>Risk | 6122<br> (a) |
| Swap Agreements | Unrealized Appreciation<br>on Swap Agreements | Interest Rate <br>Risk | 425 |
| Purchased Options | Investments, at Value<br>(Purchased Options) | <br>Currency Risk | 310<br> (b) |
| Total |  |  | $20035 |

---

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Notes to Financial Statements (cont'd)

---

| | | | |
|:---|:---|:---|:---|
| | **Liability Derivatives<br>Statement of Assets and<br>Liabilities Location** | **Primary Risk<br>Exposure** | **Value<br>(000)** |
| Foreign Currency<br>Forward Exchange<br>Contracts | Unrealized Depreciation<br>on Foreign Currency<br>Forward Exchange<br>Contracts | <br>Currency Risk | $(8445) |
| Futures Contracts | Variation Margin on<br>Futures Contracts | Interest Rate <br>Risk | (187)(a) |
| Swap Agreements | Variation Margin on<br>Swap Agreements | Interest Rate <br>Risk | (1889)(a) |
| Options Written | Investments, at Value<br>(Options Written) | <br>Currency Risk | (113) |
| Total |  |  | $(10634) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a)This amount represents the cumulative appreciation (depreciation) as reported in the Portfolio of Investments. The Statement of Assets and Liabilities only reflects the current day's net variation margin.

&nbsp;&nbsp;&nbsp;&nbsp;(b)Amount is included in Investments in Securities in the Statement of Assets and Liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;The following tables set forth by primary risk exposure the Fund's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended April 30, 2025 in accordance with ASC 815:

---

| | | |
|:---|:---|:---|
| **Net Realized Gain (Loss)** | **Net Realized Gain (Loss)** | **Net Realized Gain (Loss)** |
| **Primary Risk <br>Exposure** | **Derivative<br>Type** | **Value<br>(000)** |
| <br>Currency Risk | Foreign Currency Forward<br>Exchange Contracts | $(1169) |
| Interest Rate Risk | Futures Contracts | (152) |
| Interest Rate Risk | Swap Agreements | (810) |
| <br>Currency Risk | Investments<br>(Purchased Options) | (153)(a) |
| Currency Risk | Options Written | 38 |
| Total |  | $(2246) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a)Amounts are included in Realized Gain (Loss) on Investments Sold in the Statement of Operations.

---

| | | |
|:---|:---|:---|
| **Net Change in Unrealized Appreciation (Depreciation)** | **Net Change in Unrealized Appreciation (Depreciation)** | **Net Change in Unrealized Appreciation (Depreciation)** |
| **Primary Risk <br>Exposure** | **Derivative <br>Type** | **Value<br>(000)** |
| <br>Currency Risk | Foreign Currency Forward<br>Exchange Contracts | $4774 |
| Interest Rate Risk | Futures Contracts | (311) |
| Interest Rate Risk | Swap Agreements | 4862 |
| Currency Risk | Investments<br>(Purchased Options) | 110<br> (a) |
| Currency Risk | Options Written | 98 |
| Total |  | $9533 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a)Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Statement of Operations.

&nbsp;&nbsp;&nbsp;&nbsp;At April 30, 2025, the Fund's derivative assets and liabilities are as follows:

---

| | | |
|:---|:---|:---|
| **Gross Amounts of Assets and Liabilities Presented in the <br>Statement of Assets and Liabilities** | **Gross Amounts of Assets and Liabilities Presented in the <br>Statement of Assets and Liabilities** | **Gross Amounts of Assets and Liabilities Presented in the <br>Statement of Assets and Liabilities** |
| **Derivatives(a)** | **Assets(b)<br>(000)** | **Liabilities(b)<br>(000)** |
| Foreign Currency Forward <br>Exchange Contracts | $13162 | $(8445) |
| Purchased Options | 310<br> (c) |  |
| Options Written |  | (113) |
| Swap Agreements | 425 |  |
| Total | $13897 | $(8558) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a)Excludes exchange-traded derivatives.

&nbsp;&nbsp;&nbsp;&nbsp;(b)Absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statement of Assets and Liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;(c)Amount is included in Investments in Securities in the Statement of Assets and Liabilities.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Notes to Financial Statements (cont'd)

&nbsp;&nbsp;&nbsp;&nbsp;The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements ("ISDA Master Agreements") or similar master agreements (collectively, "Master Agreements") with its contract counterparties for certain OTC derivatives in order to, among other things, reduce its credit risk to counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the counterparty certain OTC derivative financial instruments' payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default, termination and/or potential deterioration in the credit quality of the counterparty. Various Master Agreements govern the terms of certain transactions with counterparties, including transactions such as swap, forward, repurchase and reverse repurchase agreements. These Master Agreements typically attempt to reduce the counterparty risk associated with such transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Cross-termination provisions under Master Agreements typically provide that a default in connection with one transaction between the Fund and a counterparty gives the non-defaulting party the right to terminate any other transactions in place with the defaulting party to create one single net payment due to/due from the defaulting party and may be a feature in certain Master Agreements. In the event the Fund exercises its right to terminate a Master Agreement after a counterparty experiences a termination event as defined in the Master Agreement, the return of collateral with market value in excess of the Fund's net liability may be delayed or denied.

&nbsp;&nbsp;&nbsp;&nbsp;The following tables present derivative financial instruments that are subject to enforceable netting arrangements as of April 30, 2025:

**Gross Amounts Not Offset in the Statement of Assets and Liabilities**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Counterparty** | **Gross Asset<br>Derivatives<br>Presented in the<br>Statement of<br>Assets and<br>Liabilities<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Received(a)<br>(000)** | **Net<br>Amount<br>(not less<br>than $0)<br>(000)** |
| Australia & <br>New Zealand <br>Banking Group Ltd. | $93 | $— | $— | $93 |
| Bank of America NA | 230 | (230) |  | 0 |
| Barclays Bank PLC | 2161 | (793) | (1290) | 78 |
| BNP Paribas SA | 572 | (6) | (320) | 246 |
| Citibank NA | 1911 | (411) | (1470) | 30 |
| Goldman Sachs <br>International | 930 | (930) |  | 0 |
| HSBC Bank PLC | 1558 | (998) |  | 560 |
| JPMorgan Chase <br>Bank NA | 1626 | (1245) | (381) | 0 |
| Standard Chartered <br>Bank | 472 | (66) | (300) | 106 |
| State Street Bank <br>and Trust Co. | 3464 | (2588) |  | 876 |
| UBS AG | 880 | (261) | (356) | 263 |
| Total | $13897 | $(7528) | $(4117) | $2252 |

---

**Gross Amounts Not Offset in the Statement of Assets and Liabilities**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Counterparty** | **Gross Liability<br>Derivatives<br>Presented in the<br>Statement of<br>Assets and<br>Liabilities<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Pledged(a)<br>(000)** | **Net<br>Amount<br>(not less<br>than $0)<br>(000)** |
| Bank of America NA | $345 | $(230) | $(115) | $0 |
| Barclays Bank PLC | 793 | (793) |  | 0 |
| BNP Paribas SA | 6 | (6) |  | 0 |
| Citibank NA | 411 | (411) |  | 0 |
| Goldman Sachs <br>International | 1845 | (930) | (915) | 0 |
| HSBC Bank PLC | 998 | (998) |  | 0 |
| JPMorgan Chase <br>Bank NA | 1245 | (1245) |  | 0 |
| Standard Chartered <br>Bank | 66 | (66) |  | 0 |

---

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Notes to Financial Statements (cont'd)

**Gross Amounts Not Offset in the Statement of Assets and Liabilities**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Counterparty** | **Gross Liability<br>Derivatives<br>Presented in the<br>Statement of<br>Assets and<br>Liabilities<br>(000)** | **Financial<br>Instrument<br>(000)** | **Collateral<br>Pledged(a)<br>(000)** | **Net<br>Amount<br>(not less<br>than $0)<br>(000)** |
| State Street Bank and <br>Trust Co. | $2588 | $(2588) | $— | $0 |
| UBS AG | 261 | (261) |  | 0 |
| Total | $8558 | $(7528) | $(1030) | $0 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a)In some instances, the actual collateral received may be more than the amount shown here due to overcollateralization.

&nbsp;&nbsp;&nbsp;&nbsp;For the six months ended April 30, 2025, the average monthly amount outstanding for each derivative type is as follows:

**Foreign Currency Forward Exchange Contracts:**

---

| | |
|:---|:---|
| Average monthly principal amount | $926590000 |

---

**Futures Contracts:**

---

| | |
|:---|:---|
| Average monthly notional value | $11900000 |

---

**Purchased Options:**

---

| | |
|:---|:---|
| Average monthly notional amount | $38527000 |

---

**Swap Agreements:**

---

| | |
|:---|:---|
| Average monthly notional amount | $365960000 |

---

**Written Options:**

---

| | |
|:---|:---|
| Average monthly notional amount | $16953000 |

---

**5. Indemnifications:** The Fund enters into contracts that contain a variety of indemnification clauses. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.

**6. Dividends and Distributions to Stockholders:** Dividends and distributions to stockholders are recorded on the ex-dividend date. Dividends from net investment

income, if any, are declared and paid quarterly. Net realized capital gains, if any, are distributed at least annually.

**7. Other:** Security transactions are accounted for on the date the securities are purchased or sold. Realized gains (losses) on the sale of investment securities are determined on the specific identified cost basis. Interest income is recognized on the accrual basis except where collection is in doubt and is recorded net of foreign withholding tax. Dividends and distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes.

**8. Segment Reporting:** During the reporting period, the Fund adopted FASB Accounting Standards Update No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, (ASU 2023-07), which requires incremental disclosures related to a public entity's reportable segments. The Fund operates as a single reportable segment, an investment company whose investment objective is included at the beginning of the Notes to the Financial Statements. In connection with the adoption of ASU 2023-07, the Fund's President has been designated as the Fund's Chief Operating Decision Maker (CODM), who is responsible for assessing the performance of the Fund's single segment and deciding how to allocate the segment's resources. To perform this function, the CODM reviews the information in the Fund's Financial Statements.

**B. Advisory/Sub-Advisory Fees:** The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, calculated weekly and payable monthly, at an annual rate of 1.00% of the Fund's average weekly managed assets.

The Adviser has entered into a Sub-Advisory Agreement with the Sub-Adviser, a wholly-owned subsidiary of Morgan Stanley.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Notes to Financial Statements (cont'd)

The Sub-Adviser provides the Fund with advisory services subject to the overall supervision of the Adviser and the Fund's Officers and Directors. The Adviser pays the Sub-Adviser on a monthly basis a portion of the net advisory fees the Adviser receives from the Fund.

**C. Administration Fees:** The Adviser also serves as Administrator to the Fund and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Fund's average weekly managed net assets.

Under a Sub-Administration Agreement between the Administrator and State Street Bank and Trust Company ("State Street"), State Street provides certain administrative services to the Fund. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

**D. Custodian Fees:** State Street (the "Custodian") and its affiliate serve as Custodian for the Fund in accordance with a Custodian Agreement. The Custodian holds cash, securities and other assets of the Fund as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

**E. Federal Income Taxes:** It is the Fund's intention to continue to qualify as a regulated investment company and distribute all of its taxable income. Accordingly, no provision for federal income taxes is required in the financial statements.

The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued based on net investment income, net realized gains and net unrealized appreciation as such income and/or gains are earned. Taxes may also be based on transactions in foreign currency and are accrued based on the value of investments denominated in such currency.

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Generally, each of the tax years in the four-year period ended October 31, 2024 remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal years 2024 and 2023 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **2024 Distributions <br>Paid From:** | **2024 Distributions <br>Paid From:** | **2023 Distributions <br>Paid From:** | **2023 Distributions <br>Paid From:** |
| **Ordinary<br>Income<br>(000)** | **Paid-in-<br>Capital<br>(000)** | **Ordinary<br>Income<br>(000)** | **Paid-in-<br>Capital<br>(000)** |
| $19800 | $9324 | $2332 | $18629 |

---

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations which may differ from GAAP. These book/tax differences are either considered temporary or permanent in nature.

Temporary differences are attributable to differing book and tax treatments for the timing of the recognition of gains (losses) on certain investment transactions, the timing of the deductibility of certain expenses and the recognition of premium amortization.

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended October 31, 2024.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Notes to Financial Statements (cont'd)

At October 31, 2024, the Fund had no distributable earnings on a tax basis.

At October 31, 2024, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $18,273,000 and $140,850,000, respectively, that do not have an expiration date.

To the extent that capital loss carryforwards are used to offset any future capital gains realized, no capital gains tax liability will be incurred by the Fund for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the stockholders. The amount of net investment income to be paid by the Fund is determined in accordance with federal income tax regulations. It is possible that all or a portion of the Fund's fiscal year 2025 dividend may be a return of capital and that determination cannot yet be made.

**F. Security Transactions and Transactions with Affiliates:** For the six months ended April 30, 2025, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $120,076,000 and $112,990,000, respectively. There were no purchases and sales of long-term U.S.Government securities for the six month ended April 30, 2025.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Fund"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Fund. For the six months ended April 30, 2025, advisory fees paid were reduced by approximately $17,000 relating to the Fund's investment in the Liquidity Fund.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended April 30, 2025 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Affiliated<br>Investment<br>Company** | **Value<br>October 31,<br>2024<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Proceeds<br>from Sales<br>(000)** | **Dividend<br>Income<br>(000)** |
| Liquidity Fund | $— | $256410 | $236717 | $383 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Affiliated<br>Investment<br>Company (cont'd)** | **Realized<br>Gain (Loss)<br>(000)** | **Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>(000)** | **Value<br>April 30,<br>2025<br>(000)** |
| Liquidity Fund | $— | $— | $19693 |

---

Each Director receives an annual retainer fee for serving as a Director of the Morgan Stanley Funds. The aggregate compensation paid to each Director is paid by the Morgan Stanley Funds, and is allocated on a pro rata basis among each of the operational funds of the Morgan Stanley Funds based on the relative net assets of each of the funds. The company also reimburses such Directors for travel and other out-of-pocket expenses incurred by them in connection with attending such meetings.

The Fund has an unfunded Deferred Compensation Plan (the "Compensation Plan"), which allows each independent Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director generally may elect to have the deferred amounts credited with a return equal to the total return on one or more of the Morgan Stanley funds that are offered as investment options under the Compensation Plan. Appreciation/depreciation and distributions received from these investments are recorded with an offsetting increase/decrease in the deferred compensation obligation and do not affect the NAV of the Fund.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Notes to Financial Statements (cont'd)

**G. Credit Facility:** The Fund will use the proceeds from the use of leverage to purchase additional securities consistent with the Fund's investment objectives, policies and strategies. The Fund has entered into an agreement with State Street as Administrative Agent and sole lender to provide a revolving line of credit facility ("Facility") in the amount of $200,000,000. The interest for the funds drawn will be based on the Secured Overnight Financing Rate ("SOFR") plus a spread. The Facility also has a commitment fee of 0.15% of the unused portion of the Facility. The average borrowings and interest rate for the six months ended April 30, 2025 were approximately $59,685,000 and 5.82%, respectively. During the same period, the Fund incurred approximately $1,744,000 in interest expense associated with the outstanding loans and commitment fee of approximately $106,000. The loan's carrying value in the Fund's Statement of Assets and Liabilities approximates its fair value. The loan value as of the reporting date is considered level 2 under the fair value hierarchy.

**H. Other:** As permitted by the Fund's offering prospectus, on January 10, 2008, the Fund commenced a share repurchase program for purposes of enhancing stockholder value and reducing the discount at which the Fund's NAV, shares trade from their NAV. During the six months ended April 30, 2025, the Fund Fund did not repurchase any of its shares. Since the inception of the program, the Fund has repurchased 8,861,689 of its shares at an average discount of 14.64% from NAV. The Directors regularly monitor the Fund's share repurchase program as part of their review and consideration of the Fund's premium/discount history. The Fund expects to continue to repurchase its outstanding shares at such time and in such amounts as it believes will further the accomplishment of the foregoing objectives, subject to review by the Directors.

At April 30, 2025, the Fund had record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Fund. The aggregate percentage of such owners was 21.6%.

**I. Market Risk:** The value of an investment in the Fund is based on the values of the Fund's investments, which change due to economic and other events that affect the U.S. and global markets generally, as well as those that affect or are perceived or expected to affect particular regions, countries, industries, companies, issuers, sectors, asset classes or governments. The risks associated with these developments may be magnified if certain social, political, economic and other conditions and events adversely interrupt or otherwise affect the global economy and financial markets. Securities in the Fund's portfolio may underperform or otherwise be adversely affected due to inflation (or expectations for inflation), deflation (or expectations for deflation), interest rates (or changes in interest rates), global demand for particular products or resources, market or financial system instability or uncertainty, embargoes, the treat or actual imposition of tariffs, sanctions and other trade barriers, natural disasters and extreme weather events, health emergencies (such as epidemics and pandemics), terrorism, regulatory events and governmental or quasi-governmental actions. The occurrence of global events, such as terrorist attacks, natural disasters, health emergencies, social and political (including geopolitical) discord and tensions or debt crises and downgrades, among others, may result in increased market volatility and may have long term effects on both the U.S. and global financial markets. The occurrence of such events may be sudden and unexpected, and it is difficult to predict when similar events affecting the U.S. or global financial markets or economies may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). Any such event(s) could have a significant adverse impact on the value, liquidity and risk profile of the Fund's portfolio, as well as its ability to sell securities and/or meet redemptions. Any such event(s) or similar types of factors and developments, may also adversely affect the financial performance of the Fund's investments (and, in turn, the Fund's investment results) and/or negatively impact broad segments of

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Notes to Financial Statements (cont'd)

businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments, and exacerbate preexisting risks to the Fund. In addition, no active trading market may exist for certain investments held by the Fund, which may impair the ability of the Fund to sell or to realize the current valuation of such investments in the event of the need to liquidate such assets.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Portfolio Management

The Fund is managed by members of the Emerging Markets Debt team. The team consists of portfolio managers, analysts and traders. For the period of the report, the members of the team jointly and primarily responsible for the day-to-day management of the Fund were Sahil Tandon, a Managing Director of the Sub-Adviser, Patrick Campbell, a Managing Director of the Adviser, and Brian Shaw, an Executive Director of the Adviser. Mr. Tandon has been associated with the Sub-Adviser in an investment management capacity since August 2019. Prior to August 2019, Mr. Tandon was associated with the Adviser in an investment capacity from 2004. Mr. Tandon began managing the Fund in October 2015. Mr. Campbell has been associated with the Adviser or its affiliates in an investment management capacity since June 2008. Mr. Shaw has been associated with the Adviser or its affiliates in an investment management capacity since December 2008.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Investment Policy

The Fund's primary investment objective is to seek a high level of current income, with a secondary investment objective of long-term capital appreciation. The Fund's investment objectives may be changed without stockholder approval; however, stockholders will be notified in writing of any changes at least 60 days' prior to any change. The Fund seeks to achieve its investment objectives by investing, under normal circumstances, at least 80% of its managed assets in emerging markets domestic debt. The Fund's investment process incorporates information about environmental, social and governance issues (also referred to as ESG) via an integrated approach within the investment team's fundamental investment analysis framework. The Adviser may engage with management of certain issuers regarding corporate governance practices as well as what the Adviser deems to be materially important environmental and/or social issues facing a company. To the extent the Fund invests in derivative instruments that the Adviser believes have economic characteristics similar to such securities, including, but not limited to, emerging market currency derivatives and swap agreements, such investments will be counted for purposes of meeting the Fund's 80% policy.

Emerging markets domestic debt refers to debt obligations of issuers located in emerging market countries that are denominated in the local currency. "Managed Assets" means the total assets of the Fund, which includes any proceeds from the issuance by the Fund of preferred shares and other borrowings for investment purposes, minus the sum of accrued liabilities (other than indebtedness attributable to leverage). The debt obligations currently include (i) Sovereign Debt Obligations and (ii) debt obligations of non-governmental issuers located in emerging markets, including bonds, convertible securities and commercial paper. For purposes of the Fund's policies, an issuer is located in an emerging market country if (i) the principal trading market for its securities is in an emerging market country, (ii) alone or on a consolidated basis it derives 50% or more of its annual revenue from either goods produced, sales made or services performed in an emerging market country or countries or (iii) it is a government entity of, is organized under the laws of, or has a principal office in, an emerging market country. Certain of the issuers that fall within categories (ii) and (iii) above may or may not have a principal trading market in an emerging market country and, while exposing the Fund's assets to the economic benefits of investing in an emerging market country, may not do so to the same extent as an issuer with a principal trading market in an emerging market country. Emerging market countries are countries that the World Bank has determined to have a low or middle-income economy. Emerging market countries may include any country in the world except the United States, Canada, Japan, Australia, New Zealand and most countries located in Western Europe. The Fund's organizational documents provide no limit on the percentage of the Fund's Managed Assets that may be invested in a single country. The Fund may invest in emerging market countries such as Indonesia, Malaysia, Thailand, the Czech Republic, Hungary, Poland, Russia, Slovakia, Turkey, South Africa, Brazil, Chile, Colombia, Mexico and Peru. The Fund may invest, without limitation, in securities that are rated below investment grade by a nationally recognized statistical rating organization or unrated securities that are deemed to be of comparable quality by the Adviser. Debt securities rated below investment grade are commonly known as "junk bonds" and are regarded as predominantly speculative with respect to the issuer's capacity to pay interest and repay principal in accordance with the terms of the obligations and involve major risk exposure to adverse conditions. The Fund's holdings may range in maturity from overnight to 30 years or more. The Fund may also invest in warrants, structured investments or other Strategic Transactions, which may be used to maintain exposure of at least 80% of its assets to debt obligations of issuers located in emerging market countries that are denominated in the local currency. Under certain limited circumstances, the Fund's investments may be all or substantially all invested in warrants, structured investments or other Strategic Transactions.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Investment Policy (cont'd)

In addition, the Fund may invest up to 20% of its Managed Assets in Strategic Transactions, which will not be used to maintain exposure of at least 80% of its assets to debt obligations of issuers located in emerging market countries that are denominated in the local currency, and in currencies of emerging market countries and other types of investments, including shares of open- and closed-end investment companies, common stocks, bonds, convertible securities, money market and short-term debt securities and cash equivalents. The Fund's 80% policy may be changed without stockholder approval; however, stockholders will be notified in writing of any changes at least 60 days' prior to any change.

**<u>The Fund's Investments</u>**

The Fund will invest primarily in debt obligations of issuers located in emerging market countries that are denominated in the local currency. The Adviser will implement a multi-phase investment process, with an emphasis on sovereign economic fundamentals, to assess sovereign risk and the relative valuations of currencies and interest rates in emerging market countries. As part of its assessment, the Adviser will analyze a country's political, economic and social environment. The Adviser will focus on change at the margin rather than taking static snapshots of economic variables and will seek to interpret events and forces in their early stages and to assess their impact on individual emerging market countries.

The Adviser implements a top down assessment of the global economic environment and the sensitivity of emerging economies in general to worldwide events. The Adviser will analyze economic factors, including governmental policies (fiscal, monetary and exchange rates regimes) and objectives (GDP growth, inflation, external accounts, debt serviceability). In selecting the Fund's investments, the Adviser analyzes the ability of an emerging market country's government to formulate and implement fiscal and economic policies; socio-political factors, including political risks, election calendars, human development and social stability; and exchange rate and interest rate valuation. In addition, the Adviser analyzes long-term equilibrium real exchange rates, utilizing a proprietary econometric model that considers the impact of various fundamental variables, including productivity differentials, terms of trade and external positions. The Adviser will utilize a proprietary interest rate and yield curve valuation model to identify investment opportunities. The Fund's investments include:

**<u>Portfolio Composition</u>**

<u>Sovereign Debt Obligations.</u> Debt obligations known as "sovereign debt" are obligations of governmental issuers in emerging market countries that are denominated in the local currency of the country of issuance and industrialized countries. "Sovereign Debt Obligations" include (i) debt securities issued or guaranteed by governments, government agencies or instrumentalities and political subdivisions, (ii) debt securities issued by government owned, controlled or sponsored entities, (iii) interests in entities organized and operated for the purposes of restructuring the investment characteristics of instruments issued by any of the above issuers or (iv) participation in loans between emerging market governments and financial institutions.

<u>Corporate Debt Obligations.</u> The Fund may invest in debt obligations of non-governmental issuers located in emerging market countries and denominated in the local currency. Corporate debt obligations generally represent an issuer's obligation to repay to the investor (or lender) the amount borrowed plus interest over a specified time period. A typical corporate bond specifies a fixed date

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Investment Policy (cont'd)

when the amount borrowed (principal) is due in full, known as the maturity date, and specifies dates when periodic interest (coupon) payments will be made over the life of the security.

Corporate debt obligations come in many varieties and may differ in the way that interest is calculated, the amount and frequency of payments, the type of collateral, if any, and the presence of special features (e.g., conversion rights). The Fund's investments in bonds and notes. The Fund may invest in convertible bonds and warrant structures, which are fixed income securities with imbedded warrants which are exercisable into other debt or equity securities, provided that upon conversion of such securities into equity securities, such equities are promptly disposed of.

<u>Other Debt Obligations.</u> The Fund may invest up to 20% of its Managed Assets in debt obligations other than those of issuers located in emerging market countries and denominated in the local currency, including, but not limited to, eurobonds, Yankee dollar obligations, global bonds and Brady Bonds.

<u>Currency.</u> The Fund is no longer limited to investing 20% of its Managed Assets in currencies of selected emerging market countries.

<u>Loan Participations and Assignments.</u> The Fund may invest in fixed and floating rate loans arranged through private negotiations between an issuer of Sovereign Debt Obligations and one or more financial institutions. The Fund's investments in Loans in most instances will be in the form of participations in Loans or assignments of all or a portion of Loans from third parties. The Fund's investment in Participations typically will result in the Fund having a contractual relationship only with the Lender and not with the borrower. The Fund will have the right to receive payments of principal, interest and any fees to which it is entitled only from the Lender selling the Participation and only upon receipt by the Lender of the payments from the borrower.

When the Fund purchases Assignments from Lenders it will acquire direct rights against the borrower on the Loan. Because Assignments are arranged through private negotiations between potential assignees and potential assignors, however, the rights and obligations acquired by the Fund as the purchaser of an Assignment may differ from, and be more limited than, those held by the assigning Lender. The assignability of certain Sovereign Debt Obligations is restricted by the governing documentation as to the nature of the assignee such that the only way in which the Fund may acquire an interest in a Loan is through a Participation and not an Assignment.

**<u>Derivatives</u>**

The Fund may, but is not required to, use derivatives and other similar instruments for a variety of purposes, including hedging, risk management, portfolio management or to seek to earn income. Derivative instruments used by the Fund will be counted towards the Fund's exposure in the types of securities listed herein to the extent they have economic characteristics similar to such securities. A derivative is a financial instrument whose value is based, in part, on the value of an underlying asset, interest rate, index or financial instrument. Prevailing interest rates and volatility levels, among other things, also affect the value of derivative instruments. Derivatives and other similar instruments that create synthetic exposure often are subject to risks similar to those of the underlying asset or instrument and may be subject to additional risks, including imperfect correlation between the value of the derivative and the

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Investment Policy (cont'd)

underlying asset, risks of default by the counterparty to certain transactions, magnification of losses incurred due to changes in the market value of the securities, instruments, indices or interest rates to which the derivative instrument relates, risks that the transactions may not be liquid, risks arising from margin and payment requirements, risks arising from mispricing or valuation complexity and operational and legal risks. The use of derivatives involves risks that are different from, and possibly greater than, the risks associated with other portfolio investments. Derivatives may involve the use of highly specialized instruments that require investment techniques and risk analyses different from those associated with other portfolio investments.

Certain derivative transactions may give rise to a form of leverage. Leverage magnifies the potential for gain and the risk of loss. Leverage associated with derivative transactions may cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations, or may cause the Fund to be more volatile than if the Fund had not been leveraged. Although the Adviser seeks to use derivatives to further the Fund's investment objective, there is no assurance that the use of derivatives will achieve this result.

The derivative instruments and techniques that the Fund may use include:

*Futures.* A futures contract is a standardized, exchange-traded agreement to buy or sell a specific quantity of an underlying asset, reference rate or index at a specific price at a specific future time. While the value of a futures contract tends to increase or decrease in tandem with the value of the underlying instrument, differences between the futures market and the market for the underlying asset may result in an imperfect correlation. Depending on the terms of the particular contract, futures contracts are settled through either physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. A decision as to whether, when and how to use futures contracts involves the exercise of skill and judgment and even a well conceived futures transaction may be unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures contracts can be highly volatile, using futures contracts can lower total return, and the potential loss from futures contracts can exceed the Fund's initial investment in such contracts. No assurance can be given that a liquid market will exist for any particular futures contract at any particular time. There is also the risk of loss by the Fund of margin deposits in the event of bankruptcy of a broker with which the Fund has open positions in the futures contract.

*Loan Participation Notes.* The Fund may invest in loan participation notes ("LPNs"), which are interests in loans or other direct debt instruments relating to amounts owed by a corporate, governmental or other borrower to another party. LPNs are notes issued through a special purpose vehicle for the purpose of funding or acquiring a loan to final obligor. LPNs are subject to the same risks as other debt obligations, which may include credit risk, interest rate risk, liquidity risk and market risk. LPNs have limited recourse to the issuer, to the extent of the amount received by the issuer from the ultimate borrower in paying the principal and interest amounts as defined under the loan agreement. The Fund may be exposed to the credit risk of both the lender and the borrower, and may not benefit from any collateral supporting the underlying loan.

*Options.* If the Fund buys an option, it buys a legal contract giving it the right to buy or sell a specific amount of the underlying instrument, foreign currency or contract, such as a swap agreement or futures contract on the underlying instrument or foreign

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Investment Policy (cont'd)

currency at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium paid by the Fund. If the Fund sells an option, it sells to another person the right to buy from or sell to the Fund a specific amount of the underlying instrument, swap, foreign currency, or futures contract on the underlying instrument or foreign currency at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium received by the Fund. When options are purchased over-the-counter ("OTC"), the Fund bears the risk that the counterparty that wrote the option will be unable or unwilling to perform its obligations under the option contract. Options may also be illiquid and the Fund may have difficulty closing out its position. A decision as to whether, when and how to use options involves the exercise of skill and judgment and even a well-conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile and the use of options can lower total returns. Investments in foreign currency options may substantially change the Fund's exposure to currency exchange rates and could result in losses to the Fund if currencies do not perform as the Adviser expects. There is a risk that such transactions may reduce or preclude the opportunity for gain if the value of the currency should move in the direction opposite to the position taken. The value of a foreign currency option is dependent upon the value of the underlying foreign currency relative to the U.S. dollar or other applicable foreign currency. The price of the option may vary with changes in the value of either or both currencies and has no relationship to the investment merits of a foreign security. Options on foreign currencies are affected by all of those factors that influence foreign exchange rates and foreign investment generally. Unanticipated changes in currency prices may result in losses to the Fund and poorer overall performance for the Fund than if it had not entered into such contracts. Options on foreign currencies are traded primarily in the OTC market, but may also be traded on U.S. and foreign exchanges.

Foreign currency options contracts may be used for hedging purposes or non-hedging purposes in pursuing the Fund's investment objective, such as when the Adviser anticipates that particular non-U.S. currencies will appreciate or depreciate in value, even though securities denominated in those currencies are not then held in the Fund's investment portfolio. Investing in foreign currencies for purposes of gaining from projected changes in exchange rates, as opposed to only hedging currency risks applicable to the Fund's holdings, further increases the Fund's exposure to foreign securities losses. There is no assurance that the Adviser's use of currency derivatives will benefit the Fund or that they will be, or can be, used at appropriate times.

*Structured Investments.* The Fund also may invest a portion of its assets in structured investments. A structured investment is a derivative security designed to offer a return linked to a particular underlying security, currency, commodity or market. Structured investments may come in various forms including notes (such as exchange-traded notes), warrants and options to purchase securities. The Fund will typically use structured investments to gain exposure to a permitted underlying security, currency, commodity or market when direct access to a market is limited or inefficient from a tax or cost standpoint. There can be no assurance that structured investments will trade at the same price or have the same value as the underlying security, currency, commodity or market. Investments in structured investments involve risks including issuer risk, counterparty risk and market risk. Holders of structured investments bear risks of the underlying investment and are subject to issuer or counterparty risk because the Fund is relying on the creditworthiness of such issuer or counterparty and has no rights with respect to the underlying investment. Certain structured investments may be thinly traded or have a limited trading market and may have the effect of increasing the Fund's illiquidity to the extent that the Fund, at a particular point in time, may be unable to find qualified buyers for these securities.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Investment Policy (cont'd)

*Swaps.* The Fund may enter into OTC swap contracts or cleared swap transactions. An OTC swap contract is an agreement between two parties pursuant to which the parties exchange payments at specified dates on the basis of a specified notional amount, with the payments calculated by reference to specified securities, indices, reference rates, currencies or other instruments. Typically swap agreements provide that when the period payment dates for both parties are the same, the payments are made on a net basis (i.e., the two payment streams are netted out, with only the net amount paid by one party to the other). The Fund's obligations or rights under a swap contract entered into on a net basis will generally be equal only to the net amount to be paid or received under the agreement, based on the relative values of the positions held by each party. Cleared swap transactions may help reduce counterparty credit risk. In a cleared swap, the Fund's ultimate counterparty is a clearinghouse rather than a swap dealer, bank or other financial institution. OTC swap agreements are not entered into or traded on exchanges and often there is no central clearing or guaranty function for swaps. These OTC swaps are often subject to credit risk or the risk of default or non-performance by the counterparty. Certain swaps have begun trading on exchanges or swap execution facilities. Exchange trading is expected to increase liquidity of swaps trading. Both OTC and cleared swaps could result in losses if interest rates, foreign currency exchange rates or other factors are not correctly anticipated by the Fund or if the reference index, security or investments do not perform as expected. The Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulatory developments require the clearing and exchange trading of certain standardized swap transactions. Swaps subject to mandatory central clearing must be traded on an exchange or swap execution facility unless no exchange or swap execution facility "makes the swap available to trade." The Fund may pay fees or incur costs each time it enters into, amends or terminates a swap agreement. The Fund's use of swaps may include those based on the credit of an underlying security, commonly referred to as "credit default swaps." Where the Fund is the buyer of a credit default swap contract, it would typically be entitled to receive the par (or other agreed-upon) value of a referenced debt obligation from the counterparty to the contract only in the event of a default or similar event by a third-party on the debt obligation. If no default occurs, the Fund would have paid to the counterparty a periodic stream of payments over the term of the contract and received no benefit from the contract. When the Fund is the seller of a credit default swap contract, it typically receives the stream of payments but is obligated to pay an amount equal to the par (or other agreed-upon) value of a referenced debt obligation upon the default or similar event of the issuer of the referenced debt obligation.

**<u>Foreign Currency Forward Exchange Contracts</u>**

In connection with their investments in foreign securities, certain Funds also may enter into contracts with banks, brokers or dealers to purchase or sell securities or foreign currencies at a future date. A foreign currency forward exchange contract is a negotiated agreement between the contracting parties to exchange a specified amount of currency at a specified future time at a specified rate. The rate can be higher or lower than the spot rate between the currencies that are the subject of the contract. Foreign currency forward exchange contracts may be used to seek to protect against uncertainty in the level of future foreign currency exchange rates or to gain or modify exposure to a particular currency. In addition, the Fund may use cross currency hedging or proxy hedging with respect to currencies in which the Fund has or expects to have portfolio or currency exposure. Cross currency and proxy hedges involve the sale of one currency against the positive exposure to a different currency and may be used for hedging purposes or to establish an active exposure to the exchange rate between any two currencies.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Investment Policy (cont'd)

Investments in foreign currency forward exchange contracts may substantially change the Fund's exposure to currency exchange rates and could result in losses to the Fund if currencies do not perform as the Adviser expects. The Adviser's success in these transactions will depend principally on its ability to predict accurately the future exchange rates between foreign currencies and the U.S. dollar. Foreign currency forward exchange contracts may be used for non-hedging purposes in seeking to meet the Fund's investment objectives, such as when the Adviser anticipates that particular non-U.S. currencies will appreciate or depreciate in value, even though securities denominated in those currencies are not then held in the Fund's investment portfolios. Investing in foreign currency forward exchange contracts for purposes of gaining from projected changes in exchange rates, as opposed to hedging currency risks applicable to the Funds' holdings, further increases the Fund's exposure to foreign securities losses. There is no assurance that the Adviser's use of currency derivatives will benefit the Fund or that they will be, or can be, used at appropriate times.

**<u>Cybersecurity Risk</u>**

With the increased use of technologies such as the internet to conduct business, the Fund, the Adviser and service providers are susceptible to operational, information security and related "cyber" risks both directly and through the service providers. Similar types of cybersecurity risks are also present for issuers of securities in which the Fund invests, which could result in material adverse consequences for such issuers and may cause the Fund's investment in such issuers to lose value. In general, cyber incidents can result from deliberate attacks or unintentional events. Cyber incidents include, but are not limited to, gaining unauthorized access to digital systems (e.g., through "hacking" or malicious software coding) for purposes of misappropriating assets or sensitive information, corrupting data, or causing operational disruption. Cyberattacks may also be carried out in a manner that does not require gaining unauthorized access, such as causing denial-of-service attacks on websites (i.e., efforts to make network services unavailable to intended users). Recently, geopolitical tensions may have increased the scale and sophistication of deliberate attacks, particularly those from nation-states or from entities with nation-state backing.

Cybersecurity failures by, or breaches of, the systems of the Adviser, distributor and other service providers (including, but not limited to, index and benchmark providers, fund accountants, custodians, transfer agents and administrators), or the issuers of securities in which the Fund invests have the ability to cause disruptions and impact business operations, potentially resulting in: financial losses, interference with the Fund's ability to calculate its NAV, disclosure of confidential trading information, impediments to trading, submission of erroneous trades or erroneous creation or redemption orders, the inability of the Fund or its service providers to transact business, violations of applicable privacy and other laws, regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, or additional compliance costs. In addition, cyberattacks may render records of Fund assets and transactions, shareholder ownership of Fund shares, and other data integral to the functioning of the Fund inaccessible, inaccurate or incomplete. Substantial costs may be incurred by the Fund in order to resolve or prevent cyber incidents in the future. While the Fund has established business continuity plans in the event of, and risk management systems to prevent, such cyber incidents, there are inherent limitations in such plans and systems, including the possibility that certain risks have not been identified, that prevention and remediation efforts will not be successful or that cyberattacks will go undetected. Furthermore, the Fund cannot control the cybersecurity plans and systems put in place by service providers to the Fund and/or issuers in which the Fund invests. The Fund and its shareholders could be negatively impacted as a result.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Investment Policy (cont'd)

**<u>Market and Geopolitical Risk</u>**

The value of your investment in the Fund is based on the values of the Fund's investments, which change due to economic and other events that affect the U.S. and global markets generally, as well as those that affect or are perceived or expected to affect particular regions, countries, industries, companies, issuers, sectors, asset classes or governments. Price movements, sometimes called volatility, may be greater or less depending on the types of securities the Fund owns and the markets in which the securities trade. Volatility and disruption in financial markets and economies may be sudden and unexpected, expose the Fund to greater risk, including risks associated with reduced market liquidity and fair valuation, and adversely affect the Fund's operations. For example, the Adviser potentially will be prevented from executing investment decisions at an advantageous time or price as a result of any domestic or global market disruptions and reduced market liquidity may impact the Fund's ability to sell securities to meet redemptions (i.e., increase the risk that the Fund will not be able to pay redemption proceeds within the allowable time period). In addition, no active trading market may exist for certain investments held by the Fund, which may impair the ability of the Fund to sell or to realize the current valuation of such investments in the event of the need to liquidate such assets.

The increasing interconnectivity between global economies and markets increases the likelihood that events or conditions in one region or market, or with respect to one company, may adversely impact other companies and other issuers, including those in a different country, region, sector, industry, or market. For example, adverse developments in the banking or financial services sector could impact companies operating in various sectors or industries and adversely impact the Fund's investments. Securities in the Fund's portfolio may underperform or otherwise be adversely affected due to inflation (or expectations for inflation), deflation (or expectations for deflation), interest rates (or changes in interest rates), global demand for particular products or resources, market or financial system instability or uncertainty, embargoes, tariffs, sanctions and other trade barriers, natural disasters and extreme weather events, health emergencies (such as epidemics and pandemics), terrorism, regulatory events and governmental or quasi-governmental actions. The occurrence of global events, such as terrorist attacks, natural disasters, health emergencies, social and political (including geopolitical) discord and tensions or debt crises and downgrades, among others, may result in increased market volatility and may have long term effects on both the U.S. and global financial markets. Inflation rates may change frequently and significantly because of various factors, including unexpected shifts in the domestic or global economy and changes in monetary or economic policies (or expectations that these policies may change). Changes in inflation rates or expected inflation rates may adversely affect market and economic conditions, an issuer's financial condition, the Fund's investments and an investment in the Fund. The market price of debt securities generally falls as inflation increases because the purchasing power of the future income and repaid principal is expected to be worth less when received by the Fund. The risk of inflation is greater for debt instruments with longer maturities and especially those that pay a fixed rather than variable interest rate. Other financial, economic and other global market and social developments or disruptions may result in similar adverse circumstances, and it is difficult to predict when similar events affecting the U.S. or global financial markets or economies may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). In general, the securities or other instruments that the Adviser believes represent an attractive investment opportunity or in which the Fund seeks to invest may be unavailable entirely or in the specific quantities sought by the Fund. As a result, the Fund may need to obtain the desired exposure through a less advantageous investment, forgo the investment at the time or seek to replicate the desired exposure through a derivative transaction or investment in another investment vehicle. Any such event(s)

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Investment Policy (cont'd)

could have a significant adverse impact on the value and risk profile of the Fund's portfolio. There is a risk that you may lose money by investing in the Fund.

Social, political, economic and other conditions and events, such as war, natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, social unrest, recessions, inflation, interest rate changes, the imposition of tariffs, trade restrictions or similar actions by the U.S. or foreign governments (or retaliatory measures taken in response to such actions) and supply chain disruptions could reduce consumer demand or economic output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on economies, financial markets, issuers and the Adviser's investment advisory activities and services of other service providers, which in turn could adversely affect the Fund's investments and other operations.

Government and other public debt, including municipal obligations, can be adversely affected by changes in local and global economic conditions, including those that result in increased debt levels. Although high levels of government and other public debt do not necessarily indicate or cause economic problems, high levels of debt may create certain systemic risks if sound debt management practices are not implemented. A high debt level may increase market pressures to meet an issuer's funding needs, which may increase borrowing costs and cause a government or public or municipal entity to issue additional debt, thereby increasing the risk of refinancing. A high debt level also raises concerns that the issuer may be unable or unwilling to repay the principal or interest on its debt, which may adversely impact instruments held by the Fund that rely on such payments.

Governmental and quasi-governmental responses to certain economic or other conditions may lead to increasing government and other public debt, particularly when such responses are unprecedented, which heighten these risks. Unsustainable debt levels can lead to declines in the value of currency, and can prevent a government from implementing effective counter-cyclical fiscal policy during economic downturns, can generate or contribute to an economic downturn or cause other adverse economic or market developments, such as increases in inflation or volatility. Increasing government and other public debt may adversely affect issuers, obligors, guarantors or instruments across a variety of asset classes.

Global events may negatively impact broad segments of businesses and populations, cause a significant negative impact on the price and performance of the Fund's investments, reduce market liquidity, adversely affect and increase the volatility of markets and the Fund's share price and exacerbate pre-existing political, social, financial and economic risks to the Fund and cause overall declines in the U.S. and global markets. The Fund's operations may be interrupted as a result, which may contribute to the negative impact on investment performance. In addition, governments, their regulatory agencies, or self-regulatory organizations may take actions (including monetary and/or fiscal actions intended to stimulate or stabilize the global economy) that affect the instruments in which the Fund invests, or the issuers of such instruments, in ways that could have a significant negative impact on the Fund's investment performance. Monetary and/or fiscal actions taken by U.S. or foreign governments may not be effective and could lead to increased market volatility. In addition, government actions (such as changes to interest rates) could have unintended economic and market consequences that adversely affect the Fund's investments. The frequency and magnitude of resulting changes in the value of the Fund's investments cannot be predicted.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Investment Policy (cont'd)

**<u>Foreign and Emerging Market Securities</u>**

Investments in foreign markets entail special risks, such as currency, political (including geopolitical), economic and market risks and heightened risks, that may result in losses to the Fund. There also may be greater market volatility, less reliable financial information, less stringent investor protections and disclosure standards, higher transaction and custody costs and risks, decreased market liquidity and less government and exchange regulation associated with investments in foreign markets. In addition, investments in certain foreign markets that have historically been considered stable may become more volatile and subject to increased risk due to developments and changing conditions in such markets. Moreover, the growing interconnectivity of global economies and financial markets has increased the probability that adverse developments and conditions in one country or region will affect the stability of economies and financial markets in other countries or regions. Certain foreign markets may rely heavily on particular industries or foreign capital and are more vulnerable to diplomatic developments (including regional and global, military or other conflicts), the imposition of economic sanctions against a particular country or countries, organizations, companies, entities and/or individuals, changes in international trading patterns, trade barriers (including tariffs) and other protectionist or retaliatory measures. Investments in foreign markets may also be adversely affected by governmental interventions or other actions such as the imposition of capital controls, nationalization of companies or industries, expropriation of assets or the imposition of punitive taxes. The governments of certain countries may prohibit or impose substantial restrictions on foreign investing in their capital markets or in certain sectors or industries. In addition, a foreign government may limit or cause delay in the convertibility or repatriation of its currency which would adversely affect the U.S. dollar value and/or liquidity of investments denominated in that currency. Certain foreign investments may become less liquid and decline in value in response to market developments or adverse investor perceptions, or become illiquid after purchase by the Fund, particularly during periods of market, economic, political and social turmoil. When the Fund holds illiquid investments, its portfolio may be harder to value. The risks of investing in emerging market countries are greater than the risks associated with investments in foreign developed countries. Emerging market countries may be subject to increased potential for market manipulation and to less stringent requirements regarding accounting, auditing, financial reporting and record keeping and therefore, material information related to an investment may not be available or reliable. In addition, the Fund is limited in its ability to exercise its legal rights or enforce a counterparty's legal obligations in certain jurisdictions outside of the United States, in particular, in emerging market countries. In addition, the Fund's investments in foreign issuers may be denominated in foreign currencies and therefore, to the extent unhedged, the value of those investments will fluctuate with U.S. dollar exchange rates. Economic sanctions or other similar measures may be, and have been, imposed against certain countries, organizations, companies, entities and/or individuals. Economic sanctions and other similar measures could, among other things, effectively restrict or eliminate the Fund's ability to purchase or sell securities (in the sanctioned country and other markets), negatively impact the value or liquidity of the Fund's investments, significantly delay or prevent the settlement of the Fund's securities transactions, force the Fund to sell or otherwise dispose of investments at inopportune times or prices, or impair the Fund's ability to meet its investment objective or invest in accordance with its investment strategies.

**<u>Chinese Fixed-Income Investments</u>**

The Fund may invest in Chinese fixed-income securities traded in the China Interbank Bond Market ("CIBM") through the Bond Connect program ("Bond Connect"), which allows non-Chinese-domiciled investors (such as the Fund) to purchase certain fixed income investments available in China's interbank bond market. Bond Connect utilizes the trading infrastructure of both Hong Kong

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Investment Policy (cont'd)

and China. Bond Connect therefore is not available when there are trading holidays in Hong Kong. As a result, prices of securities purchased through Bond Connect may fluctuate at times when the Fund is unable to add to or exit its position. Securities offered via Bond Connect may lose their eligibility for trading through the program at any time, in which case they may be sold but could no longer be purchased through Bond Connect. Because Bond Connect is relatively new, its effects on the Chinese interbank bond are uncertain. In addition, the trading, settlement and information technology systems required for non-Chinese investors in Bond Connect are relatively new and continuing to evolve. In the event that the relevant systems do not function properly, trading via Bond Connect could be disrupted, adversely affecting the ability of the Fund to acquire or dispose of securities through Bond Connect in a timely manner, which in turn could adversely impact the Fund's performance.

Bond Connect is subject to regulation by both Hong Kong and China. There can be no assurance that further regulations will not affect the availability of securities in the program, the frequency of redemptions or other limitations. In China, Bond Connect securities are held on behalf of ultimate investors (such as the Fund) by the Hong Kong Monetary Authority Central Money Markets Unit via accounts maintained with China's two clearinghouses for fixed-income securities. While Chinese regulators have affirmed that the ultimate investors hold a beneficial interest in Bond Connect securities, the law surrounding such rights continues to develop, and the mechanisms that beneficial owners may use to enforce their rights are untested and therefore pose uncertain risks, with legal and regulatory risks potentially having retroactive effect. Further, courts in China have limited experience in applying the concept of beneficial ownership, and the law surrounding beneficial ownership will continue to evolve as they do so. There is accordingly a risk that, as the law is tested and developed, the Fund's ability to enforce its ownership rights may be negatively impacted, which could expose the Fund to the risk of loss on such investments. The Fund may not be able to participate in corporate actions affecting Bond Connect securities due to time constraints or for other operational reasons, and payments of distributions could be delayed. Market volatility and potential lack of liquidity due to low trading volume of certain bonds may result in prices of those bonds fluctuating significantly; in addition, the bid-ask spreads of the prices of such securities may be large, and the Fund may therefore incur significant costs and suffer losses when selling such investments. More generally, bonds traded in CIBM may be difficult or impossible to sell, which could further impact the Fund's ability to acquire or dispose of such securities at their expected prices. Bond Connect trades are settled in Renminbi ("RMB"), the Chinese currency, and investors must have timely access to a reliable supply of RMB in Hong Kong, which cannot be guaranteed. Moreover, securities purchased through Bond Connect generally may not be sold, purchased or otherwise transferred other than through Bond Connect in accordance with applicable rules. Finally, uncertainties in the Chinese tax rules governing taxation of income and gains from investments via Bond Connect could result in unexpected tax liabilities for the Fund. The withholding tax treatment of dividends and capital gains payable to overseas investors currently is unsettled.

Under the prevailing applicable Bond Connect regulations, the Fund participates in Bond Connect through an offshore custody agent, registration agent or other third parties (as the case may be), who would be responsible for making the relevant filings and account opening with the relevant authorities. The Fund is therefore subject to the risk of default or errors on the part of such agents.

**<u>ESG Investment Risk</u>**

To the extent that the Adviser considers ESG issues as a component in its investment decision-making process, the Fund's performance may be impacted. Additionally, the Adviser's consideration of ESG issues in its investment decision-making process may require

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Investment Policy (cont'd)

subjective analysis and the ability of the Adviser to consider ESG issues may be difficult if data about a particular issuer (or obligor) is limited. The Adviser's consideration of ESG issues may contribute to the Adviser's decision to forgo opportunities to buy certain securities. ESG issues with respect to an issuer (or obligor) or the Adviser's assessment of such may change over time.

**<u>Temporary Investments</u>**

The investment policies, limitations or practices of the Fund may not apply during periods of unusual or adverse market, economic, political or other conditions. Such market, economic, political or other conditions may include periods of abnormal or heightened market volatility, strained credit and/or liquidity conditions or increased governmental intervention in the markets or industries. During such periods, the Fund may not invest according to its principal investment strategies or in the manner in which its name may suggest, and may be subject to different and/or heightened risks. It is possible that such unusual or adverse conditions may continue for extended periods of time. During such periods, the Fund may, for temporary defensive purposes, reduce its holdings in debt obligations of issuers located in emerging markets countries that are denominated in the local currency and invest in certain liquid short-term (less than one year to maturity) and medium-term (not greater than five years to maturity) debt securities or hold cash. The short-term and medium-term debt securities in which the Fund may invest consist of (a) obligations of the U.S., emerging market or other foreign governments, their respective agencies or instrumentalities; (b) bank deposits and bank obligations (including certificates of deposit, time deposits and bankers' acceptances) of U.S. or foreign banks denominated in any currency; (c) floating rate securities and other instruments denominated in any other currency issued by various governments or international development agencies; (d) finance company and corporate commercial paper and other short-term corporate debt obligations of United States, emerging market or other foreign corporations; and (e) repurchase agreements with banks and broker/dealers with respect to such securities. The Fund intends to invest for temporary defensive purposes only in short-term and medium-term debt securities that the Adviser believes to be of high quality, i.e., subject to relatively low risk of loss of interest or principal (there is currently no rating system for debt securities in certain emerging market countries in which the Fund may invest).

**<u>Pricing of Securities</u>**

Certain of the Fund's securities may be valued by an outside pricing service approved by the Board. The pricing service/vendor may utilize a matrix system or other model incorporating attributes such as security quality, maturity and coupon as the evaluation model parameters, and/or research evaluations by its staff, including review of broker-dealer market price quotations in determining what it believes is the fair valuation of the portfolio securities valued by such pricing service. Pricing services value securities assuming orderly transactions of an institutional round lot size, but the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots.

**<u>Determination of NAV</u>**

The Fund determines the NAV per share as of the close of the NYSE (normally 4:00 p.m. Eastern time) on each day that the NYSE is open for business. Shares generally will not be priced on days that the NYSE is closed, although shares may be priced on such days if the Securities Industry and Financial Markets Association ("SIFMA") recommends that the bond markets remain open for all or part of the day. On any business day when SIFMA recommends that the bond markets close early, the Fund reserves the right to price its shares at or prior to the SIFMA recommended closing time. If the NYSE is closed due to inclement weather, technology problems or

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Investment Policy (cont'd)

any other reason on a day it would normally be open for business, or the NYSE has an unscheduled early closing on a day it has opened for business, the Fund reserves the right to treat such day as a business day and calculate its NAV as of the normally scheduled close of regular trading on the NYSE for that day, so long as the Adviser believes there generally remains an adequate market to obtain reliable and accurate market quotations. The Fund may elect to price its shares on days when the NYSE is closed but the primary securities markets on which the Fund's securities trade remain open.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Dividend Reinvestment Plan

Pursuant to the Dividend Reinvestment Plan (the Plan), each stockholder will be deemed to have elected, unless Computershare Trust Company, N.A. (the Plan Agent) is otherwise instructed by the stockholder in writing, to have all distributions automatically reinvested in Fund shares.

Dividend and capital gain distributions (Distribution) will be reinvested on the reinvestment date in full and fractional shares. If the market price per share equals or exceeds net asset value per share on the reinvestment date, the Fund will issue shares to participants at net asset value or, if net asset value is less than 95% of the market price on the reinvestment date, shares will be issued at 95% of the market price. If net asset value exceeds the market price on the reinvestment date, participants will receive shares valued at market price. The Fund may purchase shares of its Common Stock in the open market in connection with dividend reinvestment requirements at the discretion of the Board of Directors. Should the Fund declare a Distribution payable only in cash, the Plan Agent will purchase Fund shares for participants in the open market as agent for the participants.

The Plan Agent's fees for the reinvestment of a Distribution will be paid by the Fund. However, each participant's account will be charged a pro rata share of brokerage commissions incurred on any open market purchases effected on such participant's behalf. Although stockholders in the Plan may receive no cash distributions, participation in the Plan will not relieve participants of any income tax which may be payable on such dividends or distributions.

In the case of stockholders, such as banks, brokers or nominees, that hold shares for others who are the beneficial owners, the Plan Agent will administer the Plan on the basis of the number of shares certified from time to time by the stockholder as representing the total amount registered in the stockholder's name and held for the account of beneficial owners who are participating in the Plan.

Stockholders who do not wish to have Distributions automatically reinvested should notify the Plan Agent in writing. There is no penalty for non-participation or withdrawal from the Plan, and stockholders who have previously withdrawn from the Plan may rejoin at any time. Requests for additional information or any correspondence concerning the Plan should be directed to the Plan Agent at:

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.<br>Computershare Trust Company, N.A.<br>P.O. Box 43078<br>Providence, RI 02940-3078<br>1 (800) 231-2608

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

Important Notices

**Reporting to Shareholders**

The Fund provides a complete schedule of portfolio holdings in its semi-annual and annual reports within 60 days of the end of the Fund's second and fourth fiscal quarters. The semi-annual and annual reports are filed electronically with the Securities and Exchange Commission ("SEC") on Form N-CSRS and Form N-CSR, respectively. Morgan Stanley makes these reports available on its public website, www.morganstanley.com/im/shareholderreports. Each Morgan Stanley non-money market fund also files a complete schedule of portfolio holdings with the SEC for the Fund's first and third fiscal quarters as an attachment to Form N-PORT and monthly holding for each money market fund on Form N-MFP. Morgan Stanley does not deliver the reports for the first and third fiscal quarters to stockholders, but makes the complete schedule of portfolio holdings for the Fund's first and third fiscal quarters available on its public website. The holdings for each money market fund are also posted to the Morgan Stanley public website. You may, however, obtain Form N-PORT filings (as well as the Form N-CSR, N-CSRS and N-MFP filings) by accessing the SEC's website, www.sec.gov. You can also request copies of these materials, upon payment of a duplicating fee, by electronic request at the SEC's e-mail address (publicinfo@sec.gov).

In addition to filing a complete schedule of portfolio holdings with the SEC each fiscal quarter, the Fund provides a complete schedule of portfolio holdings on the public website on a monthly basis at least 15 calendar days after month end and under other conditions as described in the Fund's policy on portfolio holdings disclosure. You may obtain copies of the Fund's monthly website postings by calling toll free 1(800) 231-2608.

**Proxy Voting Policies and Procedures and Proxy Voting Record**

A copy of (1) the Fund's policies and procedures with respect to the voting of proxies relating to the Fund's portfolio securities; and (2) how the Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30, is available without charge, upon request, by calling toll free 1(800) 231-2608 or by visiting our website at www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html. This information is also available on the SEC's web site at www.sec.gov.

**Share Repurchase Program**

You can access information about the monthly share repurchase results through Morgan Stanley Investment Management's website: www.morganstanley.com/im/shareholderreports.

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

U.S. Customer Privacy Notice March 2025

---

| | |
|:---|:---|
| **FACTS** | **WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?** |
| **Why?** | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
| **What?** | The types of personal information we collect and share depend on the product or service you have with us. This information can include:<br>◼ Social Security number and income<br>◼ Investment experience and risk tolerance<br>◼ Checking account information and wire transfer instructions |
| **How?** | All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing. |

---

---

| | | |
|:---|:---|:---|
| **Reasons we can share your personal information** | **Does MSIM share?** | **Can you limit this sharing?** |
| **For our everyday business purposes —** <br>such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No |
| **For our marketing purposes —** <br>to offer our products and services to you | Yes | No |
| **For joint marketing with other financial companies** | No | We don't share |
| **For our affiliates' everyday business purposes —** <br> information about your transactions and experiences | Yes | No\* |
| **For our affiliates' everyday business purposes —** <br> information about your creditworthiness | Yes | Yes\* |
| **For our affiliates to market to you** | Yes | Yes\* |
| **For nonaffiliates to market to you** | No | We don't share |

---

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

U.S. Customer Privacy Notice (cont'd) March 2025

---

| | |
|:---|:---|
| **To limit our sharing** | Call toll-free: (844) 312-6327 or email: <u>msimprivacy@morganstanley.com</u>. Please include your name, address, and first three digits (and only the first three digits) of your account number in the email. If we serve you through an investment professional, please contact them directly. Specific Internet addresses, mailing addresses, and telephone numbers are listed on your statements and other correspondence.<br>**PLEASE NOTE:** If you are a *new* customer, we can begin sharing your information 30 days from the date we sent this notice. When you are *no longer* our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing. |
| **Questions?** | Call toll-free: (844) 312-6327 or email: <u>msimprivacy@morganstanley.com</u> |

---

**Who we are**

---

| | |
|:---|:---|
| **Who is providing this notice?** | Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (See Affiliates definition below.) |

---

**What we do**

---

| | |
|:---|:---|
| **How does MSIM protect my personal information?** | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information. |
| **How does MSIM collect my personal information?** | We collect your personal information, for example, when you<br>◼ open an account or make deposits or withdrawals from your account<br>◼ buy securities from us or make a wire transfer<br>◼ give us your contact information<br>We also collect your personal information from others, such as credit bureaus, affiliates, or other companies. |
| **Why can't I limit all sharing?** | Federal law gives you the right to limit only<br>◼ sharing for affiliates' everyday business purposes — information about your creditworthiness<br>◼ affiliates from using your information to market to you<br>◼ sharing for nonaffiliates to market to you<br>State laws and individual companies may give you additional rights to limit sharing. (See below for more on your rights under state law.) |
| **What happens when I limit sharing for an account I hold jointly with someone else?** | Your choices will apply to everyone on your account. |

---

------

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**April 30, 2025 (unaudited)**

U.S. Customer Privacy Notice (cont'd) March 2025

**Definitions**

---

| | |
|:---|:---|
| **Affiliates** | Companies related by common ownership or control. They can be financial and nonfinancial companies.<br>◼ *Our affiliates include registered investment advisers such as Eaton Vance Management and Calvert Research and Management, registered broker-dealers such as Morgan Stanley Distribution, Inc. and Eaton Vance Distributors, Inc., and registered and unregistered funds sponsored by Morgan Stanley Investment Management such as the registered funds within Morgan Stanley Institutional Fund, Inc. (together, the "Investment Management Affiliates"); and companies with a Morgan Stanley name and financial companies such as Morgan Stanley Barney LLC and Morgan Stanley & Co. (the, "Morgan Stanley Affiliates").* |
| **Nonaffiliates** | Companies not related by common ownership or control. They can be financial and nonfinancial companies.<br>◼ *MSIM does not share with nonaffiliates so they can market to you.* |
| **Joint marketing** | A formal agreement between nonaffiliated financial companies that together market financial products or services to you.<br>◼ *MSIM does not jointly market.* |

---

**Other Important Information**

**\* PLEASE NOTE: MSIM does not share your creditworthiness information or your transactions and experiences information with the Morgan Stanley Affiliates, nor does MSIM enable the Morgan Stanley Affiliates to market to you. Your opt outs will prevent MSIM from sharing your creditworthiness information with the Investment Management Affiliates and will prevent the Investment Management Affiliates from marketing their products to you.**

**Vermont:** Except as permitted by law, we will not share personal information we collect about Vermont residents with Nonaffiliates unless you provide us with your written consent to share such information.

**California:** Except as permitted by law, we will not share personal information we collect about California residents with Nonaffiliates and we will limit sharing such personal information with our Affiliates to comply with California privacy laws that apply to us.

------

(This page has been left blank intentionally.)

------

**Directors**

Frank L. Bowman<br>Frances L. Cashman<br>Kathleen A. Dennis<br>Nancy C. Everett<br>Richard G. Gould III<br>Eddie A. Grier<br>Jakki L. Haussler<br>Dr. Manuel H. Johnson<br>Michael F. Klein<br>Patricia A. Maleski<br>W. Allen Reed, *Chair of the Board*

**Officers**

Deidre A. Downes<br>*Chief Compliance Officer*

John H. Gernon<br>*President and Principal Executive Officer*

Michael J. Key<br>*Vice President*

Mary E. Mullin<br>*Secretary and Chief Legal Officer*

Francis J. Smith<br>*Treasurer and Principal Financial Officer*

**Adviser and Administrator**

Morgan Stanley Investment Management Inc.<br>1585 Broadway<br>New York, New York 10036

**Sub-Adviser**

Morgan Stanley Investment Management Limited<br>25 Cabot Square, Canary Wharf<br>London, E14 4QA, England

**Custodian**

State Street Bank and Trust Company<br>One Congress Street<br>Boston, Massachusetts 02114

**Stockholder Servicing Agent**

Computershare Trust Company, N.A.<br>P.O. Box 505000<br>Louisville, Kentucky 40233

**Legal Counsel**

Dechert LLP<br>1095 Avenue of the Americas<br>New York, New York 10036

**Counsel to the Independent Directors**

Morgan, Lewis & Bockius LLP<br>One State Street<br>Hartford, Connecticut 06103

**Independent Registered Public Accounting Firm**

Ernst & Young LLP<br>200 Clarendon Street<br>Boston, Massachusetts 02116

For additional Fund information, including the Fund's net asset value per share and information regarding the investments comprising the Fund's portfolio, please call toll free 1 (800) 231-2608 or visit our website at www.morganstanley.com/im/shareholderreports. All investments involve risks, including the possible loss of principal.© 2025 Morgan Stanley

---

| | |
|:---|:---|
| ![](j25146592_za004.jpg)  | CEEDDSAN EXP 06.30.26 |

---

------

(b) Not applicable.

**Item 2. Code of Ethics**

Not required in this filing.

**Item 3. Audit Committee Financial Expert**

Not required in this filing.

**Item 4. Principal Accountant Fees and Services**

Not required in this filing.

**Item 5. Audit Committee of Listed Registrants**

Not applicable.

**Item 6. Schedule of Investments**

(a) Please see schedule of investments contained in the Financial Statements and Financial Highlights included under Item 7 of this Form N-CSR.

(a) Not applicable.

**Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies**

Not applicable.

**Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies**

Not applicable.

**Item 9. Proxy Disclosures for Open-End Management Investment Companies**

Not applicable.

**Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies**

Not applicable.

**Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract**

Not applicable.

**Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies**

Not required for this filing.

**Item 13. Portfolio Managers of Closed-End Management Investment Companies**

Not required for this filing.

**Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers**

**REGISTRANT PURCHASE OF EQUITY SECURITIES**

---

| | | | | |
|:---|:---|:---|:---|:---|
| Period | (a) Total <br> Number of <br> Shares (or <br> Units)<br> Purchased | (b) Average <br> Price Paid per <br> Share (or Unit) | (c) Total<br> Number of <br> Shares (or <br> Units)<br> Purchased as <br> Part of Publicly <br> Announced <br> Plans or <br> Programs | (d) Maximum <br> Number (or <br> Approximate <br> Dollar Value) <br> of Shares (or <br> Units) that May <br> Yet Be <br> Purchased<br> Under the Plans <br> or Programs |
| November 2024 | – |  | N/A | N/A |
| December 2024 | – |  | N/A | N/A |
| January 2025 | – |  | N/A | N/A |
| February 2025 | – |  | N/A | N/A |
| March 2025 | – |  | N/A | N/A |
| April 2025 | – |  | N/A | N/A |
| Total | – |  | N/A | N/A |

---

**Item 15. Submission of Matters to a Vote of Security Holders**

There have been no material changes to the procedures by which shareholders may recommend nominee to the Fund's Board of Directors since the Fund last provided disclosure in response to this item.

**Item 16. Controls and Procedures**

(a) It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness
of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within
90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been
recorded, processed, summarized and reported within the time period specified in the Commission's rules and forms and that
the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive
officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b) There have been no changes in the registrant's internal controls over financial reporting during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

**Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies**

(a) For the Semi-Annual period ended April 30, 2025, the Fund earned income and incurred the following costs and expenses as a result of its securities lending activities:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | Cash |  |  |  |  | &nbsp;&nbsp;Total | &nbsp;&nbsp;Net Income |
|  |  | Collateral |  |  |  |  | &nbsp;&nbsp;Costs of | &nbsp;&nbsp;from Securities |
| Gross | Revenue | Management | Administrative | Indemnification | &nbsp;&nbsp;Rebates to | Other | &nbsp;&nbsp;Securities | &nbsp;&nbsp;Lending |
| Income<sup>1</sup> | Split<sup>2</sup> | Fees<sup>3</sup> | Fees<sup>4</sup> | Fees<sup>5</sup> | &nbsp;&nbsp;Borrowers | Fees | &nbsp;&nbsp;Lending Activities | &nbsp;&nbsp;Activities |
| N/A | N/A | N/A | N/A | N/A | &nbsp;&nbsp;N/A | N/A | &nbsp;&nbsp;N/A | &nbsp;&nbsp;N/A |

---

1. Gross Income includes income from the reinvestment of cash collateral.

2. Revenue split represents the share of revenue generated by the securities lending program and paid to State Street.

3. Cash collateral management fees include fees deducted from a pooled cash collateral reinvestment vehicle that are not included in
the revenue split.

4. These administrative fees are not included in the revenue split.

5. These indemnification fees are not included in the revenue split.

(b) Pursuant to an agreement between the Fund and State Street Bank and Trust Company ("State Street"), the Fund may lend its securities through State Street as securities lending agent to certain qualified borrowers. As securities lending agent of the Fund, State Street administers the Fund's securities lending program. These services include arranging the loans of securities with approved borrowers and their return to the Fund upon loan termination, negotiating the terms of such loans, selecting the securities to be loaned and monitoring dividend activity relating to loaned securities. State Street also marks to market daily the value of loaned securities and collateral and may require additional collateral as necessary from borrowers. State Street may also, in its capacity as securities lending agent, invest cash received as collateral in pre-approved investments in accordance with the Securities Lending Authorization Agreement. State Street maintains records of loans made and income derived therefrom and makes available such records that the Fund deems necessary to monitor the securities lending program.

**Item 18. Recovery of Erroneously Awarded Compensation**

Not applicable.

**Item 19. Exhibits**

---

| | |
|:---|:---|
| (a)(1) | Registrant's Code of Ethics – Not applicable (please see Item 2). |
| [(a)(2)(i)](tm2514659d1_ex99-cert.htm#a_001) | [Principal Financial Officer's Section 302 certification.](tm2514659d1_ex99-cert.htm#a_001) |
| [(a)(2)(ii)](tm2514659d1_ex99-cert.htm#a_002) | [Principal Executive Officer's Section 302 certification.](tm2514659d1_ex99-cert.htm#a_002) |
| [(b)](tm2514659d1_ex99-906cert.htm) | [Combined Section 906 certification.](tm2514659d1_ex99-906cert.htm) |

---

**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.

Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.

---

| | |
|:---|:---|
| By: | /s/ John H. Gernon |
|  | John H. Gernon |
|  | Principal Executive Officer |
| Date: | June 16, 2025 |

---

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/ Francis J. Smith |
|  | Francis J. Smith |
|  | Principal Financial Officer |
| Date: | June 16, 2025 |
| By: | /s/ John H. Gernon |
|  | John H. Gernon |
|  | Principal Executive Officer |
| Date: | June 16, 2025 |

---

## Ex-99.Cert

**Exhibit 99.CERT**

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**FORM N-CSR**

**Exhibit 19(a)(2)(i)**

**<u>CERTIFICATION</u>**

I, Francis J. Smith, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this report on Form N-CSR of Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. ;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period
covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required
to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures
(as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined
in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under
our supervision, 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about
the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based
on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period
covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control
over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the
registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which
are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal
control over financial reporting.

---

| | |
|:---|:---|
| Date: June 16, 2025 | /s/ Francis J. Smith |
|  | Francis J. Smith |
|  | Principal Financial Officer |

---

**Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.**

**FORM N-CSR**

**Exhibit 19(a)(2)(ii)**

**<u>CERTIFICATION</u>**

I, John H. Gernon, certify that:

1. I have reviewed this report on Form N-CSR of Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. ;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period
covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required
to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures
(as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined
in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under
our supervision, 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about
the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based
on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period
covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control
over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the
registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which
are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal
control over financial reporting.

---

| | |
|:---|:---|
| Date: June 16, 2025 | /s/ John H. Gernon |
|  | John H. Gernon |
|  | Principal Executive Officer |

---

## Exhibit 99.906

**Exhibit 99.906CERT**

**<u>Form N-CSR Item 19(b) Exhibit</u>**

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned hereby certify in their capacity as Principal Financial Officer and Principal Executive Officer, respectively, of Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. (the "Fund"), that:

&nbsp;&nbsp;&nbsp;&nbsp;(a) The Semi-Annual Report of the Fund on Form N-CSR for the period ended April 30,
2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;(b) The information contained in the Report fairly presents, in all material respects, the financial condition and the results of operations
of the **Fund** for such period.

**A signed original of this written statement required by section 906 has been provided to the Fund** **and will be retained by the Fund and furnished to the Securities and Exchange Commission or its staff upon request.**

---

| |
|:---|
| Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. |
| Date: June 16, 2025 |
| /s/ Francis J. Smith |
| Francis J. Smith |
| Principal Financial Officer |
| Date: June 16, 2025 |
| /s/ John H. Gernon |
| John H. Gernon |
| Principal Executive Officer |

---