Skip to main content

Debt restructuring in a fracturing global economy

The increasingly diverse array of creditors to debt-distressed EM governments – and the difficulties in getting China and Western lenders to see eye to eye – is already gumming up sovereign debt restructurings. And despite some positive noises from the latest World Bank and IMF meetings, this is likely to be a sign of things to come as the global economy continues to fracture. For the fiscally-strained countries in question, that will prolong economic pain and delay their ability to regain access to global capital markets. And in the future, external financing for low-income EMs may increasingly be split into camps dominated by lending from China and lending from Western investors/multilateral institutions.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access