EM debt strains ‘contained’ but doubts linger on sustainability
Most debt repayment strains in emerging markets have been contained, according to the Institute of International Finance, but there are still concerns about the organisation of debt relief and debt sustainability.
In CEEMEA and Latin America last year, six governments defaulted: Argentina, Belize, Ecuador and Suriname in Latin America, plus Lebanon and Zambia.
Though the Covid-19 pandemic acted as a catalyst for non-payment, some countries had pre-existing problems. Zambia had been racking up debt for years.Meanwhile, despite the pandemic, most ...