Record debt pile leaves emerging markets ‘vulnerable’ to shock

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By Phil Thornton
09 Jan 2020

Emerging market borrowers’ growing appetite for capital market debt has increased the risks of a shock triggering a financial crisis, the World Bank has warned.

Debt taken on since 2010 by borrowers in emerging and developing economies has surged by 54% to a record $55tr compared with previous periods, and half of that has come from the private sector.

Since the global financial crisis, borrowing by emerging markets and developing economies (EMDEs) has ...

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