World Bank warns of global debt crisis following the fastest increase in borrowing since the 1970s
Will this debt wave (as the World Bank calls it) end with crash?
(From CNBC)The World Bank said that while low levels of interest rates — which financial markets expect to be sustained over the medium term — “mitigate some of the risks associated with high debt levels,” the previous three waves of broad-based debt accumulation all ended with financial crises in many developing and emerging economies.
“Low global interest rates provide only a precarious protection against financial crises,” Ayhan Kose, director of the World Bank’s Prospects Group, said in the report.
Reprinted from: https://www.ac2news.com/2020/01/world-bank-warns-of-global-debt-crisis-following-the-fastest-increase-in-borrowing-since-the-1970s/
