NewsBite

Looming emerging market debt crisis will be worse than the last

Looming emerging market debt crisis will be worse than the last

The landmark victory for vulture funds in getting better deals from debt restructurings will complicate the looming spate of emerging market debt crises.

Maldives: Perfect one day, bankrupt the next. 

The Maldives’ coral-encrusted islands have long been irresistible to tourists. But today its secluded luxury resorts are deserted, except those converted into makeshift quarantine facilities for stranded coronavirus patients.

The virus has shattered global tourism and devastated the Maldivian economy. The International Monetary Fund has gone from projecting a 6 per cent expansion in gross domestic product this year to an 8 per cent contraction. The risk is that this brutal, abrupt recession could translate into the Maldives becoming the latest country to sink into sovereign bankruptcy.

Loading...

Read More

Latest In Debt markets

Fetching latest articles

Original URL: https://www.afr.com/markets/debt-markets/looming-emerging-market-debt-crisis-will-be-worse-than-the-last-20200513-p54sfw