Institute of International Finance August 2, 2022

Economic Views: Funding Gaps in Frontier Markets

· Sergi Lanau

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About this work

External bond repayments exposed different financing vulnerabilities in El Salvador and Pakistan in August 2022. Jonathan Fortun and Sergi Lanau projected a Salvadoran funding gap of at least 4% of GDP in the second half, with heavy reserve use expected. Pakistan’s smaller potential gap depended critically on official creditors renewing loans and providing support.

Abstract

External bond repayments exposed different financing vulnerabilities in El Salvador and Pakistan in August 2022. Jonathan Fortun and Sergi Lanau projected a Salvadoran funding gap of at least 4% of GDP in the second half, with heavy reserve use expected. Pakistan’s smaller potential gap depended critically on official creditors renewing loans and providing support.

Cite this work

Jonathan Fortun, Sergi Lanau (2022). Economic Views: Funding Gaps in Frontier Markets. Institute of International Finance.