By Paul Kilby and Davide Scigliuzzo

WASHINGTON, Oct 7 (IFR) - Beyond the negative headlines over European banks, Brexit and a slumping British pound, investors at the World Bank/IMF meetings remain upbeat about the prospects for emerging markets.

And while EM countries have problems of their own, the buyside is more than happy to take bets on the asset class at a time when low growth in the developed world keeps rates low.

Aside from positive technicals brought on by accommodative monetary policies, fundamentals are also improving in EM after a period slow or negative growth.

The Fund recently revised its GDP forecast for emerging and developing countries up to 4.2% for the year, even as it lowered its outlook for advanced economies to 1.6%.

"EM growth is getting better at the margin and a lot of current accounts have moved into positive territory," Pierre-Yves Bareau, global head of EM debt at JP Morgan Asset Management, told IFR on the sidelines of the meetings.

"The difference between EM and developed market growth is growing again."

The turnaround in emerging markets is arguably most pronounced in Latin America, particularly on the political front as new leaders in Argentina, Peru and Brazil maintain or tighten the reins on fiscal consolidation.

"I like Latin America which has lagged on the debt side," said Bareau. "It is the only region left where you have positive political catalyst."

COLOMBIA STAYS THE COURSE

This remains true in Colombia even amid concerns that a setback in the peace process with the FARC rebel group could derail the government's fiscal reform agenda.

The market had been bullish on the oil exporting country following a rebound in crude amid expectations that the sovereign would soon reap a peace dividend from the end of Latin America's longest running civil war.

But the surprise no vote on the peace deal last weekend took investors off guard and raised questions about the government's ability to pass tax reforms seen as vital to supporting Colombia's credit standing among rating agencies.

"The economic agenda remains as it was before the plebiscite," Ana Milena Lopez Rocha, Colombia's director general of public credit, told IFR.

A reform bill aimed at simplifying the tax code and increasing fiscal revenues over the coming years is expected to land in Congress next week.

Lopez said the government made no changes to the bill following the October 2 referendum that rejected President Juan Manuel Santos's peace proposal.

Colombia is expected to cut its fiscal deficit to 3.3% of GDP in 2017 from 3.9% this year to comply with its fiscal responsibility law.