OECD Webinar on Sovereign Funding in Emerging Market Economies

Globally, the COVID-19 crisis has markedly increased debt vulnerabilities as public debt levels reached record highs, with shorter maturities and larger refinancing needs (OECD Sovereign Borrowing Outlook, 2021). In particular, Emerging Market Economies (EMEs) with high debt levels have become more vulnerable to global risks that could trigger a sudden shift in market sentiment, which in turn could put pressure on sustaining market access and managing refinancing risk. A legacy of high debt burden left by the crisis may also limit room for fiscal stimulus during future recessions. While favorable global financial conditions have so far shielded EMEs, the path forward is uncertain.