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Frontier sovereign debt distress still high

While the overall incidence of sovereign debt distress in the emerging world has fallen back since last year, sovereign debt distress in frontier markets hasn’t. And, if anything, things have taken a turn for the worse in recent weeks in some of the more debt-distressed frontiers, including Argentina, Ecuador and Tunisia. We’re also concerned about sovereign debt dynamics in a handful of frontiers that have, historically, had sound fiscal positions, including Panama and Romania.

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