Subscribers

Global debt soars, along with fears of crisis ahead

The concern stems from emerging-economy businesses which borrowed in dollars or euro and won't be able to pay back, leading to defaults amid rising interest rates

Washington

TEN years after the worst financial panic since the 1930s, growing debt burdens in key developing economies are fuelling fears of a new crisis that could spread far beyond the disruption sweeping Turkey.

The loss of investor confidence in the Turkish lira, which has surrendered more than 40 per cent of its value this year, is only a preview of debt problems that could engulf countries such as Brazil, South Africa, Russia and Indonesia, some economists say.

Sebnem Kalemli-Ozcan, an economics professor at the University of Maryland, said: "Turkey is not the last one. Turkey is the beginning."

For now, few experts think that a broader crisis is imminent, though Argentina this week asked the...

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes