1. Whats the problem?
Emerging markets owe more than $8.4 trillion in foreign-currency debt, or about 30% of the developing worlds gross domestic product. At least $730 billion is coming due through the rest of this year, as many of these nations see the worst of the virus, which will severely tax health systems. The fear is that weakening local currencies, dwindling foreign reserves and slower global growth, compounded by lower oil prices, will make it harder for some developing countries to keep up on their external debt payments.
2. Which countries are in trouble?
While some nations — Argentina, Lebanon and Venezuela among them — were in trouble long before Covid-19 scared investors out of risky assets, the pandemic has he…
Read the full article at: https://www.washingtonpost.com/business/energy/why-theres-a-looming-debt-crisis-in-emerging-markets/2020/05/26/dc20d206-9f8a-11ea-be06-af5514ee0385_story.html