Emerging nations trimming US$5t debt

New York

BORROWERS in emerging markets have started to address a US$5 trillion mountain of US dollar-denominated bonds and loans, reducing their obligations for the first time in seven years in a move that threatens to cut short a budding rally in currencies from Brazil to Malaysia.

Companies in developing nations paid back US$38 billion of dollar debt last quarter, US$3 billion more than they borrowed in the period and marking the first reduction in net issuance since 2008, according to data compiled by Bloomberg.