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.
China's nearly 2.5 Trillion external debt payment is astounding. We hear a lot about China holding US debt. How does their external debt payment compare to external debt holdings and debt receipts (inflow compared to outflow)?
ReplyDeleteI don't think the $2.5 TR figure for China is correct. Where are you getting this data?
ReplyDeleteThe CIA world factbook has $360 bn as a figure. SAFE has $392 bn at the end of March 2008.
The FT article linked in my post:
ReplyDelete"Brazil, Russia, India and China face external debt payments of $205bn, $605bn, $257bn and $2,437bn respectively, but can rely on large foreign exchange reserves to help meet bills."
The Chinese statistic is not correct.
ReplyDeletePost the correct figure with a "source" link and I will update immediately.
ReplyDelete