KONTAN.CO.ID - LONDON. Falling interest rates have fuelled a fresh borrowing bonanza in the first quarter of 2019 with emerging market debt soaring to record highs and the global debt stock bulging by $3 trillion, an Institute of International Finance (IIF) report showed. Debt owed by governments, companies, financial institutions and households across developing economies soared to $69.1 trillion or 216% of gross domestic product from $68.9 trillion a year earlier. Debt-to-GDP ratios had risen at the fastest pace in Chile, Korea, Brazil, South Africa, Pakistan and China over the past year, the IIF found. "The persistent economy-wide increase in EM borrowing continues to feed into higher contingent liabilities for many sovereigns," IIF deputy director Emre Tiftik wrote in a note.
Emerging market debt soars to record $69.1 trln in Q1 on falling interest rates
KONTAN.CO.ID - LONDON. Falling interest rates have fuelled a fresh borrowing bonanza in the first quarter of 2019 with emerging market debt soaring to record highs and the global debt stock bulging by $3 trillion, an Institute of International Finance (IIF) report showed. Debt owed by governments, companies, financial institutions and households across developing economies soared to $69.1 trillion or 216% of gross domestic product from $68.9 trillion a year earlier. Debt-to-GDP ratios had risen at the fastest pace in Chile, Korea, Brazil, South Africa, Pakistan and China over the past year, the IIF found. "The persistent economy-wide increase in EM borrowing continues to feed into higher contingent liabilities for many sovereigns," IIF deputy director Emre Tiftik wrote in a note.