$4 trillion debt binge could spark new global crisis, IMF warns

Governments and central banks risk sparking a fresh global financial crisis, the International Monetary Fund has said, as it called time on a corporate debt binge in the developing world.

Emerging market companies have over-borrowed by an estimated $US3 trillion ($4.2 trillion) in the last decade, threatening to trigger a sharp capital crunch and capital outflows in economies that have already been hit hard by low commodity prices, the fund warned on Wednesday in its latest Global Financial Stability Report.
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