UK press: World set for emerging market mass default, warns IMF

Author: Eamonn Sheridan | Category: News

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.

The article is ungated just in case your were feeing happy and care free and would like to address that immediately

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