Tuesday, December 30, 2008

The Emerging... 'Emerging Market' Crowd Out

The Financial Times via Naked Capitalism details the issues Emerging Market countries may face

Record volumes of government bonds from the industrialised nations – intended to reverse what could be the worst recession since the Great Depression – threaten to curb access to credit markets by emerging economies.

Analysts warn that emerging market borrowers could be crowded out of the credit markets by $3,000bn of government bonds expected to be issued by the big developed economies in 2009 – three times more than in 2008. The US alone is expected to issue about $2,000bn next year....
How dependent are Emerging Market countries to credit markets? Well, as can be seen below BRIC countries alone have~$3.5 trillion in External Debt Payments to make in 2009.