Mumbai, Sept. 24 -- OECD stated in its latest economic outlook that fiscal vulnerabilities could increasingly attract attention, tightening financial conditions and adversely impacting growth prospects. Rising long-term sovereign bond yields reflect large and persisting fiscal deficits combined with historically high levels of public debt in many economies. Further increases in term premia could heighten refinancing risks for some sovereign borrowers and may negatively feedback to parts of the financial system, including through the impact on the value of sovereign bond holdings. Ongoing vulnerabilities related to debt distress in emerging-market and developing economies also remain, especially for lower-income countries who have had diff...
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