Non-performing loans are likely to climb in many EMs as output and incomes collapse, potentially forcing policymakers in some countries to step in and recapitalise banks. The risks are greatest in Brazil, Mexico and India, where policymakers’ reluctance to provide significant fiscal support could see NPLs surge. Meanwhile, problems on the liabilities side of banks’ balance sheets are most likely to occur in Turkey, where large short-term external debts will be increasingly difficult to roll over.
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