Ukraine’s war is fueling many problems such as hyperinflation, trade turmoil and weak economies (Getty)
Lebanon and Tunisia appear among a group of 17 countries that are currently lagging behind pay off debtsI prepared a report on it Fitch Ratings AgencyAnd it was published today, Sunday, confirming that the record is a record, noting that the group also includes Russia Ukraine, Belarus, andVenezuela AndArgentina Pakistan, Sri Lanka, Zambia, Ghana, Ethiopia, Tajikistan, El Salvador, Suriname, Ecuador and Belize.
The agency indicated in a statement that the countries concerned are either in default or indicating bond yields In the financial markets, this happens.
The US International Fitch, which monitors more than 100 countries, reported that the Ukraine war was fueling several problems, such as: rampant inflation Trade turmoil and weak economies, which are now affecting the sovereign credit conditions of the countries under follow-up, including Arab countries.
This prompted Fitch to lower its outlook on sovereign debt, due to concerns related to rising global borrowing costs and the possibility of a new wave of defaults. Debt repaymentNote that most of the governments covered by the agency either brought in subsidies or implemented tax cuts, in an attempt to mitigate the impact of high inflation, but these trends have had their costs.
Head of the Sovereign Ratings Unit at the agency, James McCormack, said, explaining that “high interest rates increase the costs of servicing government debt,” reducing the view of the sovereign sector from “improving” to “neutral,” noting that it has begun to increase again the number of countries that are witnessing a reduction in their ratings. credit rating this year with increasing pressures on their economies.
McCormack added that “while the moderate fiscal deterioration can be absorbed by the positive effects of inflation on government debt mechanisms, such effects depend on maintaining low interest rates, and this is no longer certain.”
The credit agency report pointed out that the current situation, characterized by high prices, is benefiting the commodity-exporting countries, while those countries that have to import the bulk of energy and food sources are suffering greatly.