Non-financial corporate debt in emerging-market economies: trends, causes, risks and countermeasures

TAN Xiaofen1 LI Yuan1

(1.School of Finance, Central University of Finance and Economics)

【Abstract】The rapid accumulation of non-financial corporate debts in the emerging-market economies (EMEs) in the wake of the global financial crisis and their potential risks have aroused attention from and triggered concerns in the academic and policymaking circles. The rising concerns have come from, apart from the deteriorating macroeconomic fundamentals and corporate financial conditions of the EMEs, the expectation that the global financial conditions will turn from extraordinarily easy to tight. As the developed countries, such as the US, exit from their quantitative easing monetary policy, the rising global interest rates will put more debt repayment pressure on EMEs enterprises, especially those that have issued dollar-denominated debt. Although most of the EMEs enterprises currently may not face an imminent danger of falling into a debt crisis, given their deteriorating financial conditions, they have been pushed onto the brink of bankruptcy. In addition, the rising macro leverage ratio and deteriorating corporate financial conditions have served as a time bomb for economic growth and financial stability of the EMEs. Therefore, it is necessary to take a series of measures to help the non-financial enterprises in the EMEs cut their leverage levels while maintaining their economic and financial stability.

【Keywords】 emerging-market economies; non-financial corporate debt; deleveraging;


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(Translated by LI Mengling)


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This Article


CN: 11-3799/F

Vol , No. 05, Pages 61-77+5

September 2018


Article Outline


  • 1 Trends of debt problems of the non-financial corporate sector in EMEs
  • 2 Causes of the debt problems of non-financial corporate sectors in EMEs
  • 3 Debt risk of non-financial enterprises in EMEs
  • 4 Policy implications
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