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India, Indonesia are among Asia's most debt-risky nations: Moody's

Moody's Investors Service's external vulnerability index puts Indonesia at 51 per cent and India at 74%


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It’s no surprise that India and are among the worst-hit this year when you look at their foreign debt exposure and the level of reserves they have to cover that.

Moody’s Investors Service’s external vulnerability index — which is the ratio of short-term debt, maturing long-term debt and non-resident deposits over one year calculated as a proportion of reserves —puts at 51 per cent and India at 74 per cent.

and the are the odd ones out: the ringgit has gained this year even though is among the most debt risky in Asia, while the has low foreign exposure but a currency that’s the second worst-performer in Asia, down almost 5 percent against the dollar.

Tighter global financial conditions is making it more expensive to refinance foreign debt and adds to pressure on currencies. In some countries, including and the Philippines, yields have risen, Moody’s said.

First Published: Tue, May 29 2018. 23:54 IST