BIS Flags Emerging-Market Risks as $340 Billion of Debt Matures
- Debt payments by 2018 represent 40% rise over last 3 years
- Corporate debt in developing nations has gained 11% this year
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A 40 percent increase in the amount of corporate debt coming due in developing nations over the next three years is creating a potential default risk if investors start pulling money out of emerging markets, according to the Bank for International Settlements.
About $340 billion of debt is maturing between this year and 2018, the Basel, Switzerland-based institute said in a report Thursday. The total payments due each year during the period is equivalent to the net bond sales by non-financial companies in developing nations in 2015, it said.