Emerging markets expected to issue $300 bln in bonds in 2013
MOSCOW. Nov 11 (Interfax) - The amount of borrowing by emerging markets has grown dramatically in the past decade, but there are no risks yet with the growth of government debt in these countries, Russian Deputy Finance Minister Sergei Storchak said at a press conference on Friday after a meeting of the Financial Stability Council.
"The latest forecast is that emerging markets will issue about $300 billion in bonds this year, like last year. What does this mean? For comparison, they raised about $10 billion in 2002," Storchak said.
However, he disagreed with suggestions that there is a bubble on the bond market. "Borrowing has indeed increased many times recently, and issues by countries with emerging markets are very unbalanced by timing," Storchak said, noting that there were few offerings by these countries in May-June but that the situation changed dramatically in September-October.
He attributed this to there being sufficient resources in the global financial system recently and emerging markets successfully taking advantage of this. "Successfully because the overwhelming majority of these countries have good debt ratios. There are, granted, countries where they are approaching dangerous figures, but it's still fairly far to these figures," Storchak said.