Entries for 'Debt Sustainability'
May 17, 2023
The global debt stock grew by $8.3 trillion to a near-record $305 trillion in Q1 2023; the combination of high debt levels and rising interest rates has pushed up debt service costs, prompting concerns about the use of leverage in the financial system.
April 12, 2023
Some $120 billion was added to the debt pile of frontier markets in 2022, bringing it to an all-time high of $3.6 trillion.
February 22, 2023
The nominal USD value of global debt declined by some $4 trillion to slightly below $300 trillion in 2022. Helped by stronger growth and inflation, global debt/GDP fell again in 2022 – but is still above pre-pandemic levels.
February 17, 2023
The external debt burden of many emerging markets surged in 2022 as EM currencies fell against the USD.
Given the high risk of cyclical depreciation and ensuing currency mismatch, sovereign debtors raising foreign currency funds should consider appropriate hedging or other risk mitigation tools.
January 13, 2023
The growing links between financial leverage and non-financial risks (e.g. climate) are complex and will require new data tools and metrics to monitor and address.
October 24, 2022
As borrowing slowed, frontier market debt dipped to $3.5 trillion in Q2 2022—still $480 billion above pre-pandemic levels. Helped by economic recovery in an inflationary environment, the FM debt-to-GDP ratio edged down to 103% in Q2 2022.
October 11, 2022
In light of the 2022 Annual Meetings of the International Monetary Fund and World Bank Group, this letter sets out private sector perspectives on growing challenges to debt sustainability and efforts to enhance the international sovereign debt architecture.
October 10, 2022
This week, Clay is joined by IIF President and CEO Tim Adams as they discuss a variety of issues surrounding global policy.
September 14, 2022
Following four quarters of consecutive decline, the global debt-to-GDP ratio is edging back up, approaching 350% of GDP in Q2 2022. We expect the global debt ratio to reach 352% of GDP by end-2022.
May 18, 2022
Total global debt rose by $3.3 trillion in Q1 2022 to a new record of over $305 trillion-mostly due to China and the U.S.
March 30, 2022
Total debt in frontier markets surged to a new record high of $3.5 trillion in 2021-some $500 billion above pre-pandemic levels. However, after reaching an all-time high in 2020, FM debt declined to 108% of GDP in 2021-helped by recovery and inflation.
February 23, 2022
Some $10 trillion was added to the global debt mountain last year, bringing the total to a new record high of $303 trillion.
November 17, 2021
After reaching an all-time high in Q2 2021, global debt declined slightly to $296 trillion in Q3–but all in mature markets. Global debt-to-GDP ratios continue to decline, helped by stronger economic activity and higher inflation.
November 4, 2021
Economic recovery remains uneven and patchy for low and lower-middle income countries (LLMICs); Despite easing external debt strains, more than half of LLMICs are at high risk of—or already in—debt distress; Little information to date on how the G20 Common Framework is being implemented; Greater debt transparency could galvanize ESG investments in emerging and developing economies—a key COP26 theme.
September 14, 2021
Some $4.8 trillion was added to the global debt mountain in Q2 2021, bringing it to an all-time high of $296 trillion. Better news: the global debt/GDP ratio declined significantly in Q2 2021, though this follows a large spike in 2020.
August 30, 2021
Efforts to improve debt transparency are underway in both the private and public sectors; the IMF and World Bank, for example, provide technical assis...
June 17, 2021
Good investor relations practices call for better debt transparency that supports regular, meaningful debtor-creditor dialogue; Limited access to timely, accurate and clear data can hinder capital flows to developing countries, while improvements in debt transparency are associated with lower borrowing costs and higher sovereign credit ratings; In cases of default, fair debt restructuring requires active information-sharing between debtor and creditors.
June 10, 2021
High and rising sovereign debt levels have greatly increased the likelihood of further debt strains; Better sovereign debt crisis prevention and resolution is needed to reflect fundamental market changes in recent years; We believe that efforts to strengthen existing mechanisms should center on improving debt transparency, regular and meaningful private-public sector dialogue, and integrating ESG/SDG considerations—all will help borrowers’ market access.
June 3, 2021
Transparency around sovereign debt obligations remains limited, particularly for emerging and developing economies; International financial institutions could help by making more granular debt data available to the public; Greater clarity around the process, terms and conditions of sovereign debt restructuring would also support debt transparency.
April 7, 2020
Global debt across all sectors rose by over $10 trillion in 2019, topping $255 trillion. At over 322% of GDP, global debt is now 40 percentage points ($87 trillion) higher than at the onset of the 2008 financial crisis—a sobering realization as governments worldwide gear up to fight the COVID-19 pandemic.