Rising corporate distress could trigger instability – IMF paper
Study says emerging markets particularly exposed as firms struggle with higher interest rates
Researchers at the International Monetary Fund have warned that a growing share of firms are struggling to service their debts, and that this is putting economies at greater risk of financial instability.
Their paper, published on January 13, says the corporate sector remained resilient during the pandemic and the subsequent period of higher interest rates.
However, it says rates are expected to remain higher than they were before Covid and that the share of distressed firms is rising, especially
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