Emerging economies' foreign debt in Q1 reaches US$ 8.5 trillion
- 6 years ago
Emerging economies are in more debt than ever.
The Korea Center for International Finance said Tuesday that emerging countries debt as of the first quarter of this year has reached 8-point-5 trillion U.S. dollars.
That's more than double the 3-point-9 trillion dollars they owed in 2008 during the global financial crisis.
Debt in foreign currencies account for 76 percent of the amount.
According to the research center, Turkey had the highest debt relative to GDP at 70 percent, Hungary came next with 64 percent and Argentina with 53 percent.
Rising interest rates in the United States have triggered capital flight from some of these countries and destabilized exchange rates, which will make it harder to repay the loans.
The Korea Center for International Finance said Tuesday that emerging countries debt as of the first quarter of this year has reached 8-point-5 trillion U.S. dollars.
That's more than double the 3-point-9 trillion dollars they owed in 2008 during the global financial crisis.
Debt in foreign currencies account for 76 percent of the amount.
According to the research center, Turkey had the highest debt relative to GDP at 70 percent, Hungary came next with 64 percent and Argentina with 53 percent.
Rising interest rates in the United States have triggered capital flight from some of these countries and destabilized exchange rates, which will make it harder to repay the loans.