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Ukraine war lifts default risk for world's fragile economies

Worries over whether Russia would deliver on its interest payments this month are leading investors to consider who else is at risk of failing to pay

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A view shows a building and vehicles destroyed by shelling as Russia's attack on Ukraine continues, in Kyiv (Photo: Reuters)

Selcuk Gokoluk and Sydney Maki | Bloomberg

6 min read Last Updated : Mar 21 2022 | 11:55 PM IST

Debt markets in some of the world’s most vulnerable nations are flashing warning signals as Russia’s invasion of Ukraine heaps extra stress on fragile economies.

Worries over whether Russia would deliver on its interest payments this month are leading investors to consider who else is at risk of failing to pay. That’s pushed up the cost of insuring against default in emerging-market nations to the highest since the pandemic turmoil of 2020.

Many investors have not been waiting around to find out. Funds have dumped bonds from developing countries this year, with outflows reaching $14.3 billion as of March

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