Asian Debt Defaults Are Expected to Rise
- China, India cited as main spots to watch for more nonpayments
- Shadow banking crackdown, rising rates hurting weak borrowers
Photographer: Dhiraj Singh/Bloomberg
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A growing chorus of observers expect debt defaults in Asia will spread as weakening currencies and tighter liquidity leave riskier borrowers with higher refinancing costs.
Rising failures add to headwinds that governments have to navigate during a politically fraught 2019, with elections in India and Indonesia. Asian dollar bond market defaults tripled to at least nine in 2018 from the previous year, according to Bloomberg-compiled data.