[PDF] External Debt - What Is It Types Effects Examples Pros & Cons

View - Download External Debt - What Is It Types Effects Examples Pros & Cons

Previous PDF

Next PDF

DEBT Report 2021

stocks, transactions (commitments, disbursements and debt service payments) and loan terms coverage and harmonization of international datasets and related data di ssemination.

Outcomes in 2020 were driven by the

ments in China. In aggregate the ten most im-

2019 external debt stock, recorded a 1.8 percent

ters of 2021 to $5.8 trillion, with a 2.6 percent rise percent contraction in long-term debt stocks. But there was wide divergence in outcomes between

China and the other nine major borrowers. Chi-

na, which accounts for around 28 percent of com- bined external debt stock of low- and middle-in- come countries and close to 50 percent of their combined GDP, drove the trend. China recorded three quarters of 2020 to $2.3 trillion at end-Sep- tember 2020 propelled by a 16.4 percent increase term obligations. In marked contrast the other the nine largest borrowers recorded, on average, a 3.6 percent contraction in external debt stocks at end-September 2020 from the end-2019 level.

Over this nine-month period their combined long-

term external debt stocks fell 3 percent and short- term debt stocks contracted 6.6 percent. quarter of 2020 China's economy rebounded ated.

The Chinese economy grew at an estimated

4.9 percent in the third quarter of 2020 leading to

increased imports and exports and a parallel rise in trade credit. Chinese borrowers also reaped the rewards of measures taken in recent years to dium-sized private sector entities and exchange rate and related policies that have resulted in the inclusion of renminbi-denominated bonds on global benchmark indices. Bond issuance by Chi- lion and investor appetite enabled China to issue the €4 billion Eurobond issue in November 2020.

External debt stock accumulation in 2020 was

also attributable to the increased holding of do- mestically issued renminbi-denominated Chinese bonds by international investors, primarily central

2ΖΖ

Ex- ternal borrowing by low- and middle-income coun- tries in 2020 took place against the backdrop of the

COVID-19 pandemic that caused a global recession

whose depth was only surpassed in the past cen- tury by the two World Wars and the Great Depres sion. It followed a decade in which external debt levels had already risen sharply in many low- and middle-income countries leaving borrowers vul- nerable to sudden changes in investor risk appetite and compounding the debt problems of the world's poorest countries, many of which were already as- sessed at high risk of debt distress. Preliminary estimates indicate that low- and middle-income countries added around $220 billion to their com ure is based on actual outcomes through the third reporting to the Quarterly External Debt Statistics (QEDS) and information from creditor sources, debt stock of low- and middle-income countries is estimated to have risen by around 2.8 percent in

2020, close to half the average 5.5 percent increase

recorded in 2018 and 2019.

0123456789

2010201 12012201 32014201 52016201 72018201 92020

Figure1: Low-and Middle-Income Countries -

External Debt Stocks, 2010-2020

US$(trillion)

Sources:World Bank Debtor Reporting System, Quarterly

External Debt Statistics and staff estimates.

downturn in short-term debt paralleling reduced bonds held by non-residents. Countries in these percent increase recorded in 2019 driven by out the external debt stock of the region, but external

Major borrowers, other than China,

As slowdown in economic activity and cross-border of the pandemic. South Africa was especially hard three quarters of 2020 with shortfalls made up by

YDULHGZLGHO\DWWKHUHJLRQDOOHYHO Coun

from bond issuance in international capital mar

05001000150020002500TurkeyThailandSouth AfricaRussiaMexicoIndonesiaIndiaChinaBrazilArgentina

Figure2: Top Ten Borrowers -External Debt

Stocks, end-2019 and Q3-2020

US$(billion)

Source:Quarterly External Debt Statistics.

Figure3: External Debt Stock by Region -Percent Change, 2018-2020

Percent

Sources:World Bank Debtor Reporting System, Quarterly External Debt Statistics and staff estimates.

H[WHUQDOGHEW"The high-frequency QEDS are a

management capacity is often weak. Over half of

Latin America and the Caribbean provide compre

28%
11%

17%23%4%

9%8% China Sources:Quarterly External Debt Statistics,creditor sourcesand staff Figure4: External Debt Stock Regional Share, end-2020

Percent

Figure5: Low-and Middle-Income Countries Reporting to QEDS by Region

Percent

Sources:World Bank Debtor Reporting SystemandQuarterly External Debt Statistics. 5

PDUNHWVE\ORZDQGPLGGOHLQFRPHFRXQWULHV

rose 3 percent in 2020 driven by a surge in is

Data compiled by

SHUFHQW IDOOLQJWR ELOOLRQIURP ELOOLRQ

in 2019. Chinese public and private sector entities

FRPSDUDEOH4JXUHIRUDQGDFFRXQWHGIRU

percent of bond issuance by all low- and middle-in

ZHUHPL[HGEXWERQGLVVXDQFHIHOOLQDOOUHJLRQV

except Latin America and the Caribbean. Coun was propelled by a 9 percent rise in issues by pub by private sector entities. Mexico accounted for 42 issue a sovereign Sustainable Development Goals

050100150200250

East Asia

and PacificEast Asia and Pacific excl. ChinaEurope and

Central AsiaLatin

America and

CaribbeanMiddle East

North AfricaSouth AsiaSub-Saharan

Africa

Figure7: Regional Distribution of Bond Issuance by Low-and Middle-Income

Countries, 2018-2020

US$(billion)

Sources:World Bank Debtor Reporting System and Dealogic.

Figure6: Bond Issuance by Low-and Middle-

Income Countries (LMICs) by Debtor Type

US$(billion)

Sources:World Bank Debtor Reporting System and Dealogic. 6

New bond issuance by countries in

WKHSDQGHPLFEXWVWDJHGDFRPHEDFNE\HQG

2020. Bond issuance by countries in Sub-Saharan

of the pandemic. Investor aversion to the region The EMBI index for African issuers fell back below quotesdbs_dbs14.pdfusesText_20

[PDF] types of fermentation

[PDF] types of financial statements

[PDF] types of financial statements pdf

[PDF] types of fire ants in texas

[PDF] types of functions

[PDF] types of functions in mathematics pdf

[PDF] types of functions pdf

[PDF] types of guns with pictures and names pdf download

[PDF] types of hydrolysis

[PDF] types of hypotonic solution

[PDF] types of immunization

[PDF] types of indoor air pollutants

[PDF] types of information source

[PDF] types of intel 8086 processor instruction set

[PDF] types of interchanges at expressways are called