Business News

Global bond sales to cross $ 10 trillion in 2022 -S&P By Reuters

2/2
© Reuters. PHOTO FILE: The S&P Global logo is displayed on its offices in the financial district in New York City, US, December 13, 2018. REUTERS / Brendan McDermid

2/2

LONDON (Reuters) – Global sovereign borrowing will reach $ 10.4 trillion in 2022, nearly a third above average before the pandemic coronavirus, S&P Global (NYSE 🙂 Ratings said in a report.

Despite an economic recovery, borrowing will remain elevated because of high debt rollover requirements and war in Ukraine, the ratings agency said in an annual note.

While 137 countries will borrow an equivalent of $ 10.4 trillion in 2022, an estimated 30% lower than 2020, the overall figure is one-third higher than average borrowing between 2016 and 2019, S&P said.

“Tightening monetary conditions will push up government funding costs,” S&P analysts said.

“This will pose additional difficulties to sovereigns that have been unable to restart growth, reduce reliance on foreign currency financing, and where interest bills are already critically high on average.”

Borrowing in the economies of emerging Europe, the Middle East and Africa (EMEA) will rise $ 253 billion to the equivalent of $ 3.4 trillion by the end of the year, S&P said in an accompanying report on Thursday.

Egypt, which has recently sought IMF assistance, is set to overtake Turkey as the region’s largest issuer of sovereign debt, with $ 73 billion worth of bond sales, S&P analysts forecast.

Among larger countries globally, Kenya, Egypt and Japan have the largest share of debt that needs to be rolled over this year, analysts said, pointing to short-term debt of 26% and 30% of total debt stocks in Egypt and Kenya respectively. .

Commercial debt in EMEA emerging markets is set to increase to 37% of GDP from 31% in 2016, boosted by pandemic-related costs, a rise in commercial borrowing in Oman and Saudi Arabia and “persistently high fiscal deficits” in Egypt and Romania.

Across emerging markets, JPMorgan (NYSE 🙂 analysts said in a note on Monday, the corporate default rate could reach 8.5% this year, more than double the 3.9% they expected before Russia invaded Ukraine and the highest since the global financial crisis.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy / sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link

Related Articles

Back to top button