Korea Zinc to Build $7.4 Billion Critical Minerals Refinery in Tennessee With U.S. Government Backing 
Japan PMI Data Signals Manufacturing Stabilization as Services Continue to Drive Growth 
Gold and Silver Prices Dip as Markets Await Key U.S. Economic Data 
Asian Currencies Slip as Dollar Strengthens; Indian Rupee Rebounds on Intervention Hopes 
Gold and Silver Surge as Safe Haven Demand Rises on U.S. Economic Uncertainty 
New Zealand Budget Outlook Shows Prolonged Deficits Despite Economic Recovery Hopes 
Trump Orders Blockade of Sanctioned Oil Tankers, Raising Venezuela Tensions and Oil Prices 
Dollar Holds Firm Ahead of Global Central Bank Decisions as Yen, Sterling and Euro React 
U.S. Stock Futures Edge Higher as Micron Earnings Boost AI Sentiment Ahead of CPI Data 
Wall Street Futures Slip as Tech Stocks Struggle Ahead of Key US Economic Data 
Australian Consumer Sentiment Slumps in Early December as Inflation Fears Resurface 
Asian Stocks Edge Higher as Tech Recovers, U.S. Economic Uncertainty Caps Gains 
Oil Prices Slip in Asia as 2026 Supply Glut Fears and Russia-Ukraine Talks Weigh on Markets 
Oil Prices Rebound as Trump Orders Blockade of Sanctioned Venezuelan Tankers 
Asian Fund Managers Turn More Optimistic on Growth but Curb Equity Return Expectations: BofA Survey 
The Post-Debt Landscape: A New Crisis Emerges
The recent wave of sovereign defaults, highlighted by Ghana, Sri Lanka, and Zambia, appears to have peaked. However, experts warn that a dangerous liquidity crisis may now emerge in many developing economies. This potential shortfall could hinder development, stifle climate change efforts, and erode trust in governments and Western institutions.
Key Issues at the IMF World Bank Meetings
This pressing issue is at the forefront of discussions during the IMF World Bank autumn meetings in Washington, D.C. Christian Libralato, portfolio manager at RBC BlueBay, notes that rising debt service costs and limited borrowing options have created uncertainty in external funding sources.
To combat this, U.S. Treasury officials are advocating for innovative short-term liquidity support for low- and middle-income nations. The Global Sovereign Debt Roundtable, consisting of representatives from various sectors, will also address these challenges in an upcoming meeting.
The Strain on Budgets and Essential Services
Vera Songwe, chair of the Liquidity and Sustainability Facility, highlights that current solutions are insufficient in scale and speed. Many nations are cutting back on vital services like education, health, and infrastructure to meet debt obligations.
Data from ONE Campaign reveals that 26 countries, including Angola and Nigeria, spent more on debt servicing than they received in new financing in 2022. This trend worsened in 2023, with experts predicting even higher negative transfers for the coming years.
A Complex Path Forward
While some countries are beginning to access markets again, the costs remain prohibitive. For instance, Kenya recently borrowed at an unsustainable interest rate above 10%. Development banks are collaborating to maximize lending, but the outlook remains challenging as Western nations hesitate to increase their financial contributions.
Amidst protests in various countries and rising discontent, experts warn of a critical juncture for emerging economies.
