Default Story Far From Over For Virus-Hit Emerging Economies

The drop in the amount of distressed debt across emerging markets has been a barely anticipated bonus for many countries this year. But it’s scant comfort for those nations still struggling with mounting obligations, Bloomberg News reported. The number of emerging- and frontier-market nations with debt trading at distressed levels -- yields more than 10 percentage points above those on U.S. Treasuries -- has tumbled from as many as 19 at the height of the coronavirus selloff in March to about a half-dozen now. A Group-of-20 initiative to suspend official loan payments for the 73 poorest nations has helped many low-income countries avoid default and free up cash for their coronavirus responses by delaying about $5 billion in payments. Read more