{"id":587544,"date":"2023-05-29T00:00:00","date_gmt":"2023-05-29T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/05\/29\/pressure-on-emerging-markets-to-continue-on-us-economic-headwinds-moodys\/"},"modified":"2023-05-29T00:00:00","modified_gmt":"2023-05-29T00:00:00","slug":"pressure-on-emerging-markets-to-continue-on-us-economic-headwinds-moodys","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/05\/29\/pressure-on-emerging-markets-to-continue-on-us-economic-headwinds-moodys\/","title":{"rendered":"Pressure on emerging markets to continue on US economic headwinds -Moody\u2019s"},"content":{"rendered":"

<\/span> No let up for emerging economies this year - Moody\u2019s:<\/span> Rating agency Moody\u2019s expects <\/span>growth to slow \u201cin most emerging markets this year\u201d as economic headwinds emanating from the US continue to spill over into the global economy, according to a report picked up by <\/span>Reuters<\/a><\/span>. Rising US interest rates, instability in the financial sector and expectations for a shallow recession later in the year will prolong weak credit conditions among EMs, which are struggling with higher borrowing costs and difficulties accessing the international capital markets, it said.<\/span><\/p>\n

EMs are in hot water: <\/span>Five emerging economies have already slipped into default, while 11 <\/span>others are approaching it with their USD debt trading at \u201cdistressed levels\u201d \u2014 including Egypt, which has had its credit rating downgraded by <\/span>Moody\u2019s<\/a><\/span> and <\/span>Fitch<\/a><\/span>.<\/span><\/p>\n

Could New York lawmakers hold the key to easing EM debt stress?<\/span> Several bills that would <\/span>make it easier for countries to restructure debts with private bondholders are currently being discussed in the New York Senate, potentially giving indebted countries breathing room should lawmakers vote them through in a few weeks time, <\/span>Bloomberg<\/a><\/span> writes. The bills would restrict how much investors can recoup when countries restructure their debt, a move which should make it easier for nations to negotiate debt relief and lower legal costs.<\/span><\/p>\n

Why this matters:<\/span> Laws in the state of New York govern around half of all FX-denominated <\/span>bonds issued by EM sovereigns.<\/span><\/p>\n

ALSO WORTH NOTING-<\/span><\/p>\n