Bloomberg: Bahrain among 7 Countries that Risk Credit-Default After Venezuela
2017-11-18 - 12:12 p
Bahrain Mirror: Bloomberg, the economic news website, said in a report that emerging-market money managers are looking to identify countries that might run into trouble down the road, after Venezuela was declared in default by credit-rating companies this week.
Bloomberg lists seven of the riskiest nations and most vulnerable countries, according to investors and the trading of swaps, the insurance contracts that protect against default, which include: Lebanon, Ecuador, Ukraine, Egypt, Pakistan, Bahrain and Turkey.
The report stressed that Bahrain's spread rose dramatically in late October to the highest since January after it was said to ask Gulf allies for aid, adding that "the nation is seeking to replenish international reserves and avert a currency devaluation as oil prices batter the six Gulf Cooperation Council oil producers."
"Although its neighbors are likely to help, Bahrain could still be left with the highest budget deficit in the region, according to the IMF," it highlighted.
Bloomberg further noted that of the riskiest nations, four- Lebanon, Egypt, Pakistan and Bahrain- haven't recorded a default event since their independence.
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