UK press: World set for emerging market mass default, warns IMF
The UK Telegraph report on the latest International Monetary Fund Financial Stability Report.
The Tele piece is from a good few hours ago, just FYI.
- The IMF has issued a double warning over higher US interest rates
- Could trigger a wave of emerging market corporate defaults and panic in financial markets as liquidity evaporates
- The IMF said corporate debts in emerging markets ballooned to $18 trillion (£12 trillion) last year, from $4 trillion in 2004 as companies gorged themselves on cheap debt
- It said the quadrupling in debt had been accompanied by weaker balance sheets, making companies more vulnerable to US rate rises
- "As advanced economies normalise monetary policy, emerging markets should prepare for an increase in corporate failures," the IMF said in a pre-released chapter of its latest Financial Stability Report.
Some doom and gloom from the IMF, via the Telegraph. And, its not even AEP writing.