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As Covid-19 thrusts China into the driver’s seat on managing sovereign debt defaults, can it navigate wisely?

Global indebtedness has never been greater than it is today. With interest rates so low for so long, anyone who could borrow has done so. But, even with rock-bottom borrowing costs, the economic fallout from the pandemic has forced one vulnerable country after another to declare sovereign default, or to signal that it may do so soon.Worse, a major creditor to debt-distressed emerging economies, China, has little experience managing cascading sovereign defaults.On November 13, Zambia became the…

Read the original article at South China Morning Post

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