Corporations and the global financial sector over the five months this year placed in the bond markets at $4.8 trillion — that’s twice the average for the same period of the last three years, according to the Washington Institute of International Finance (IIF). Experts point out that in developing countries the burden on the corporate sector is growing faster than in developed countries. So far, however, deployed a large-scale programme of support to prevent the increase in the number of bankruptcies of business due to debt problems.The global volume of corporate bond issuance since the beginning of this year (report dated may 28, 2020) exceeds $4.8 trillion, which is twice the average volume of placements for the same period in recent years, according to IIF. Including non-financial corporations took the market by $1.8 trillion vs $800 billion on average in the comparable period 2016-2019 years. Financial institutions increased their volume of loans to $2.8 trillion — that is also almost doubled.Overall, in developing countries corporate debt is growing faster than in developed: to flash COVID-19 in ten years, their volume increased by $18 trillion to $30 trillion, while the debt of financial institutions in these markets grew by $6.4 trillion to $11 trillion.In the IIF indicate that increasing the load increases the risk of nekreditosposobnym. Now the bond yields required by investors has substantially decreased compared to levels in March, experts say.Previously this IIF forecast, due to the effects of the pandemic the global debt (including both government and households, corporations, financial institutions) by 2025 will increase by $70 trillion to $325 trillion c $255 trillion in 2019 For comparison — last year loading increased by $11 trillion, to a level of 322% of global GDP. Since the beginning of this year issued debt already at $14 trillion is almost twice more than in the same period last year. The growth provided in the first place debt. In April 2020 it rose by $2.6 trillion (of which $1.5 trillion came from the USA) — whereas in an average month last year it increased by $1 trillion. In may, will probably set a new record, expected in the IIF.Tatiana Edwinola economy will shrink this year by 4.6% to devirusare level, it will not be back until mid-2022-th, it follows from the updated forecast of the rating Agency Fitch. The most pronounced recession in the Euro zone — Italy, Spain and France it exceeds 9%, the deterioration evaluating and developing countries, including in Russia, the Agency expected drop in GDP of 5% — as in the economy.Read more
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