Moody’s warns emerging economies over debt vulnerabilities

Moody’s warns emerging economies over debt vulnerabilities:

"Emerging economies with shorter debt maturities and less fiscal scope to accommodate rising debt costs are most vulnerable to a tightening of global financial conditions, according to research by credit rating agency Moody’s. The study singled out Egypt, Bahrain, Pakistan, Lebanon and Mongolia as particularly at risk; Sri Lanka and Jordan are also “highly exposed” to an interest rate shock, Moody’s said. With global interest rates rising and emerging market nations accumulating a rapidly-increasing debt pile, concerns are growing that they could be hit with a financing crisis. The IMF warned earlier this year that 40 per cent of low-income developing countries face “significant debt-related challenges”."



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