Moldova entered the top 20 countries with the lowest risk of public debt sustainability in the ranking of 101 countries in Eastern Europe, Asia, Africa and South America.
The international insurance company Euler Hermes provided such information in its review, while analyzing the state of the public debt of 101 countries in Eastern Europe, Asia, Africa and South America in terms of assessing the risk of public debt sustainability. The study examined such criteria as the ratio of public debt to GDP, its growth due to the coronavirus pandemic, the share of public debt expressed in foreign currency, the state of the balance of payments, the effective interest rate (adjusted for inflation), and the cost of debt service. The countries in the ranking were classified from high to low risk. Here are the countries with the least stable public debt: Lebanon, Suriname, Sri Lanka, Bahrain, Egypt, Zambia, Angola, El Salvador, Tunisia and Pakistan, which took the first 10 lines of the rating. At the same time, the countries with the lowest risk of public debt sustainability were located at the bottom, and the best indicators in this regard were in Bulgaria, Russia, Congo, Afghanistan, Cambodia, Chile, Thailand, Kazakhstan, Zimbabwe, Chad, Bosnia and Herzegovina, which occupy in the ranking the places from 101st to 91st, respectively. Moldova is in 85th place between Tajikistan and Honduras. Neighboring Ukraine and Romania were ranked 33rd and 59th, respectively. The study authors suggested that a debt crisis can be expected in low-income developing countries in the coming years. “Current international debt restructuring initiatives only postpone the solution to the problem and, most likely, the set goals will not be achieved. However, the "tsunami of defaults" is unlikely to happen," the review says. Euler Hermes is the world leader in credit insurance and receivables management and the world's largest export credit insurance company. The majority of Euler Hermes shares are owned by the French insurer Allianz France, which in turn is owned by the largest German insurer Allianz SE. // 02.07.2021 - InfoMarket
