IMF: Indebted Countries Suffer if US Interest Rates Rise
IMF: Indebted Countries Suffer if US Interest Rates Rise
April 06, 2021
Washington DC – The IMF warns that rising US interest rates could impact the ability of developing countries to pay debt, leading to prolonged economic crisis. The warning comes ahead of IMF, G20 and World Bank meetings, with the Fund s release of the Global Financial Stability Report.
“All countries that defaulted over the last year were middle-income countries,” said Eric LeCompte, the Executive Director of the religious development organization Jubilee USA Network. “Unfortunately, developing middle-income countries are not included in IMF and G20 debt relief solutions.
Global recovery expected to be asynchronous between advanced and emerging market economies: IMF
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Last Updated: Apr 06, 2021, 08:42 PM IST
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Synopsis Extraordinary policy measures have eased financial conditions and supported the economy, helping to contain financial stability risks, the International Monetary Fund (IMF) said in its Global Financial Stability report released ahead of the Spring meeting of the global lender and the World Bank.
Agencies The recovery is expected to be asynchronous and divergent between advanced and emerging market economies, the IMF said.
The global recovery is expected to be asynchronous and divergent between advanced and emerging market economies, the IMF said on Tuesday, noting that policymakers should take early action and tighten selected macroprudential policy tools while avoiding a broad tightening of financial conditions.
IMF warns stock markets meaningfully higher than should be
The International Monetary Fund has given a stark warning after excessive risk-taking in the markets by investors. Stocks around the world, especially those of tech firms, have surged during the coronavirus pandemic.
It s not just Germany s DAX index that has been climbing sharply even amid a time of economic contraction
The IMF said Tuesday that massive government stimuli during the coronavirus pandemic could have unintended consequences, such as causing stock prices to surge beyond their value.
The aid has had the desired effect of propping up economies but also results in excessive risk-taking in the markets, the International Monetary Fund warned in its Global Financial Stability Report.
Global Recovery Synchronous Between Advanced, Emerging Economies: IMF Global Recovery Synchronous Between Advanced, Emerging Economies: IMF The corporate sector in many countries is emerging from the pandemic over indebted, with notable differences depending on firm size and sector, it said.
The IMF said there is a pressing need to act to avoid a legacy of vulnerabilities (File)
Washington:
The global recovery is expected to be asynchronous and divergent between advanced and emerging market economies, the IMF said on Tuesday, noting that policymakers should take early action and tighten selected macroprudential policy tools while avoiding a broad tightening of financial conditions.
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Cash-burning industries are using their most valuable assets to secure liquidity during the pandemic. Yield-hungry investors are happy to oblige.
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The lush coconut palms and shady cabanas of Great Stirrup Cay welcomed cruise ship passengers until the Covid-19 pandemic froze the multibillion-dollar travel industry. The tiny island in the Bahamas is now a lifeboat for creditors instead. The tropical paradise’s owner, Norwegian Cruise Line, pledged it last year along with Harvest Caye off southern Belize, and two ships, as bond collateral for a $675 million loan.
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