About this work
Emerging market fiscal space depended heavily on borrowing costs in March 2021. Jonathan Fortun and Sergi Lanau assess solvency and refinancing risks under persistently low rates and under a return to higher rates. Brazil and South Africa appeared especially vulnerable, with the required fiscal adjustments large relative to historical experience.
Abstract
Emerging market fiscal space depended heavily on borrowing costs in March 2021. Jonathan Fortun and Sergi Lanau assess solvency and refinancing risks under persistently low rates and under a return to higher rates. Brazil and South Africa appeared especially vulnerable, with the required fiscal adjustments large relative to historical experience.
Cite this work
Jonathan Fortun, Sergi Lanau (2021). Economic Views: EM Fiscal Vulnerability. Institute of International Finance.