{"id":87763,"date":"2023-12-14T00:00:00","date_gmt":"2023-12-14T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/theres-a-debt-crisis-beginning-to-brew-in-frontier-markets\/"},"modified":"2023-12-14T00:00:00","modified_gmt":"2023-12-14T00:00:00","slug":"theres-a-debt-crisis-beginning-to-brew-in-frontier-markets","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2023\/12\/14\/theres-a-debt-crisis-beginning-to-brew-in-frontier-markets\/","title":{"rendered":"There\u2019s a debt crisis beginning to brew in frontier markets"},"content":{"rendered":"

Frontier markets are facing a growing debt crisis:<\/strong> Debt levels of the 42 countries classified as \u201cfrontier markets\u201d by the Institute of International Finance (IIF) have doubled over the past decade, reaching a record USD 3.5 tn, writes Bloomberg<\/a>. The debt covers government, corporate, and household borrowing, with USD 200 bn due to be repaid next year.<\/p>\n

Inflows are harder to come by: <\/strong>The US Federal Reserve is not expected to cut<\/a> interest rates until at least mid-2024, which has dampened investors\u2019 appetite for frontier-market debt. \u201cGlobal rates are considerably higher, and the incentive to invest in these markets is challenging when you can get 4% or 5% in US Treasuries,\u201d IIF Managing Director Sonja Gibbs said.<\/p>\n

Other business headlines worth knowing about this morning: <\/strong><\/p>\n