South-east Asia's legacy of debt still a threat to economic stability
Recent rebound in emerging-market sentiment may simply be masking the danger of "original sin"
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IN South-east Asia, original sin hasn't gone away. Even as the region's currencies rally, stock markets rise and foreign investors return, a legacy of debt remains one of the biggest threats to economic stability.
Governments and companies in Indonesia, Malaysia and other countries in the region have continued to add to borrowing this year after selling the most amount of dollar bonds in three years in 2015, increasing risks if the US Federal Reserve again lifts interest rates, the dollar rallies and local currencies tank.
