Anxieties fester over long-term EM debt sustainability

Turkey Covid_PA_575x375.jpg
By Mariam Meskin
03 Dec 2020

Emerging market borrowers seem to be enjoying unfettered access to the capital markets, but many are now questioning whether this Covid-induced debt spree can be sustained in the long run. With fiscal support packages likely to be needed in 2021, investors will be sifting through EM governments to see which will be able to borrow and which will be left behind, writes Mariam Meskin.

Of all the worries about how the global economy will cope with the coronavirus pandemic in 2021, some believe too little attention is being paid to whether the record levels of EM sovereign debt raised this year is sustainable in the long term.

According to the Institute of International ...

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