Fund says governments in emerging markets should prepare now for a novel credit crunch because of a 10-year corporate borrowing binge
Rising global interest rates could immediate a novel credit crunch in emerging markets,as businesses that have ridden the wave of cheap money to load up on debt are pushed into crisis, the International Monetary Fund has warned.
The debts of non-financial firms in emerging market economies quadrupled, and from $4tn (£2.6tn) in 2004 to well over $18tn in 2014,according to the IMF’s twice-yearly Global Financial Stability Report. Continue reading...
Source: theguardian.com