Frontier markets are facing a credit crunch and heightened risk of debt distress
During the last decade, new sources of financing opened, especially for those lower-income countries catching up with emerging economies, many of which are called frontier markets[1]. The decade after the global financial crisis was characterized by ample liquidity and low interest rates in global financial markets and leading to investors seeking yield in riskier markets. At the same time, China significantly increased its overseas lending, specifically targeting emerging and developing economies. China’s agenda was to ensure access to natural resources needed to spur its fast growth and
