Record volumes of government bonds from the industrialised nations - intended to reverse what could be the worst recession since the Great Depression - threaten to curb access to credit markets by emerging economies.Analysts warn that emerging market borrowers could be crowded out of the credit markets by $3,000bn of government bonds expected to be issued by the big developed economies in 2009 - three times more than in 2008. The US alone is expected to issue about $2,000bn next year.Emerging market governments and corporates need to repay $6,865bn of debt in 2009, according to ING Wholesale Banking. This includes bonds, loans, interest payments and trade finance.David Spegel, global head of emerging markets strategy at ING, said: "Refinancing risk is going to be one of the biggest problems for emerging market issuers in 2009.
Analysts warn that emerging market borrowers could be crowded out of the credit markets by $3,000bn of government bonds expected to be issued by the big developed economies in 2009 - three times more than in 2008. The US alone is expected to issue about $2,000bn next year.
Emerging market governments and corporates need to repay $6,865bn of debt in 2009, according to ING Wholesale Banking. This includes bonds, loans, interest payments and trade finance.
David Spegel, global head of emerging markets strategy at ING, said: "Refinancing risk is going to be one of the biggest problems for emerging market issuers in 2009.
Is there a lesson there? In the long run, we're all dead. John Maynard Keynes
