Andrey Kochetkov, a leading analyst at Otkritie Investments, told the agency: “Hitting the Primer”It could put a number of countries into default due to the possible sharp increase in the US Federal Reserve rate.
According to Kochetkov’s analysis, the economies of dozens of countries in Africa and Latin America, as well as India, are of concern. The expert pointed out that the amount of the foreign debt problem in US dollars and the need for maintenance.
The practice of state financial management provides the possibility of refinancing old liabilities.
In the last 15 years, borrowings have been made at very low rates. But now loans are getting much more expensive due to the monetary policy of the US Federal Reserve.
Many countries will have to borrow at even higher rates to refinance their debt. According to Kochetkov, this becomes unbearable for economies with weak trade balances. He pointed out that this primarily applies to countries with double budgets and trade deficits.
The economist also emphasized that the growth of the dollar led to a decrease in the prices of goods exported from troubled countries. According to him, while the incomes of these states decrease, their expenditures increase. Kochetkov concluded that the only way to avoid debt and currency shocks is to live within your means and develop your own economy.
Economist Nouriel Roubini, who previously predicted the global crisis in 2008, said that the financial markets would come in 2023. to wait The perfect storm, a combination of recession, debt crisis, and runaway inflation.