Reuters analysis examines how Bolivia's President Rodrigo Paz is pushing market oriented reforms and a $1.9 billion IMF program while his coalition fractures. Jonathan Fortun of the IIF said the $1.9 billion does not fundamentally change Bolivia's solvency arithmetic. He argued the program would ease immediate financing pressures but not restore debt sustainability alone, and that the government must cut fuel subsidy costs, curb support for state firms and narrow the deficit.
Bloomberg Línea reports that Bolivia, Brazil and Suriname rank among the 30 economies with the highest public debt relative to GDP, based on IMF data analyzed by the IIF. Jonathan Fortun said the region no longer acts as a bloc, since what worsened is the dispersion between countries rather than average debt. He said the IMF projects Brazil's debt rising to 106.5% of GDP in 2031, a slow deterioration rather than a crisis, and described Mexico's tension as cost and contingent liabilities.
Fortun explains why emerging-market portfolio flows returned to positive territory in July as equity selling slowed and debt continued to attract foreign investment. The report distinguishes the easing pressure on Asian stocks from continued strength in bond flows.
Zonebourse · Mention Original title: Les flux d'investissement vers les marchés émergents redeviennent positifs grâce au ralentissement de l'exode des actions, selon l'IIF
Emerging markets returned to net portfolio inflows in July as debt demand stayed strong and equity withdrawals slowed sharply. In this Reuters report translated by Zonebourse, Jonathan Fortun interprets the improvement as evidence that stress in Asian equities was easing rather than spreading to bonds. The coverage also examines regional differences and the risks facing demand for emerging market debt.
Emerging markets attracted $18.8 billion in portfolio inflows in July 2026, ending two months of net withdrawals. Reuters reports Jonathan Fortun’s assessment that pressure in Asian equities was easing rather than spreading to bonds. Continued debt inflows and sharply smaller equity outflows drove the improvement, although China still recorded net withdrawals.
Jonathan Fortun / Institute of International Finance
July brought $18.8 billion in net portfolio inflows to emerging markets as equity withdrawals slowed sharply. Debt attracted $26.7 billion, while Asia shifted from the main source of outflows to the largest regional contributor. The note warns that a more hawkish Federal Reserve, coordinated yen intervention and geopolitical tensions could weaken the interest-rate advantage supporting debt inflows.
Fortun contrasts Bolivia's historical currency redenomination with its current exchange-rate adjustment, using an equilibrium-rate framework to argue that nominal change can precede deeper economic repair.