Economics
Emerging-Market Stress Just Begun as Record Debt Wall Looms
- Rising borrowing costs seen hitting both dollar and local debt
- Local currency debt also face risks if foreigners seek exit
Pimco in 'Wait and See' mode for Emerging Markets
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Emerging-market companies and governments straining to deal with the rising cost of borrowing in dollars face increasing pressure as a record slew of bonds come due.
Some $249 billion needs to be repaid or refinanced through next year, according to data compiled by Bloomberg. That’s a legacy of a decade-long debt binge during which emerging markets more than doubled their borrowing in dollars, ignoring the many lessons of history from the 1980s Latin American debt crisis, the 1990s Asian financial crisis and the 2000s Argentine default.