Financial and Business News

Credit fever on developing markets

Record amounts of government securities which they intend to issue the industrialized countries next year to finance its shares to deal with recession loom, threaten to reduce access to the governments of the new economies to the credit market - says "Financial Times". According to analysts, new markets may be out of the issue of securities for 3 trillions U.S. dollars, which is three times more than in 2008. Only the U.S. is expected to issue debt of 2 trillions dollars in 2009.
Head of the Unit for Research on developing markets for RBC Capital Markets says: in simple words will be fighting for limited funds among more emitent. At the same time, governments and corporations from developing markets should pay the debt amounting to 6.865 trillions U.S. dollars next year, according ING Wholesale Banking. In including bonds, loans, interest payments and trade payments. According to the strategic leader for developing markets for ING, the risk of refinancing will be among the biggest problems in 2009 for new emerging markets.
"Do not look likely government bankruptcies, but many companies will see the debt restructuring or bankruptcy", commented analyzers. Governments and companies with the highest score will still attract buyers, but most issuers will have to provide far higher returns to investors. Payments on foreign debt next year to Brazil, Russia, India and China are as follows billion to 205 U.S. dollars, 605 U.S. dollars billion, 257 billions U.S. dollars and 2437 billions U.S. dollars, but the countries of Brick able to rely on big foreign exchange reserves to pay accounts. For example Argentina has a foreign debt of 64 U.S. dollars billion due in 2009, Turkey and 36 U.S. dollars billion

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posted by Zoritza Petrova @ 7:09 AM