The Hidden Debt Burden of Emerging Markets

OCT 9, 2015 8

Carmen Reinhart

Carmen Reinhart is Professor of the International Financial System at Harvard University's Kennedy School of Government.

Read more at https://www.project-syndicate.org/commentary/hidden-debt-burden-emerging-markets-by-carmen-reinhart-2015-10#FXJpvBLv1lmqBq1A.99

LIMA – As central bankers and finance ministers from around the globe gather for the International Monetary Fund’s annual meetings here in Peru, the emerging world is rife with symptoms of increasing economic vulnerability. Gone are the days when IMF meetings were monopolized by the problems of the advanced economies struggling to recover from the 2008 financial crisis. Now, the discussion has shifted back toward emerging economies, which face the risk of financial crises of their own.

EMERGING MARKETS-Shares and bonds rocked by U.S. Fed comments

By Carolyn Cohn and Sujata Rao

LONDON, June 20 | Thu Jun 20, 2013 6:17am EDT

(Reuters) - Stocks and bond prices plunged and debt insurance costs soared in a general flight from emerging markets on Thursday, after the U.S. Federal Reserve laid out a timetable for turning off the taps on its $85 billion-a-month bond-buying programme.

The MSCI emerging stock index was down by over 3.3 percent, hitting its lowest level since July 2012 and heading for its biggest one-day fall since Oct 2011, with weekly losses of more than 6 percent, as U.S. 10-year Treasury yields surged to 15-month highs.