http://www.bloomberg.com/news/2011-07-31/banks-in-brics-signaling-credit-risks-as-bad-loans-curb-growth.html?cmpid=
Loans to Brazilian shoppers, Chinese infrastructure projects and Indian developers have fueled the global economic recovery and turned emerging-market banks into some of the world’s biggest companies by market value. Now increased debt burdens threaten growth as central banks raise interest rates to fight inflation, U.S. hiring stalls and Europe deepens austerity measures. China and Brazil may see expansion cut by at least 50 percent in the next few years, according to economic consulting firms A. Gary Shilling & Co. and Capital Economics Ltd.
Credit is expanding in developing nations after a decade of relative economic stability. Brazil has experienced boom-and-bust cycles of inflation, currency devaluations and interest-rate swings since the end of military government in 1985. Almost half of Chinese bank loans turned sour following the Asian financial crisis, while hundreds of Russian banks were shut when the government defaulted on $40 billion of ruble debt in 1998.
Loans to Brazilian shoppers, Chinese infrastructure projects and Indian developers have fueled the global economic recovery and turned emerging-market banks into some of the world’s biggest companies by market value. Now increased debt burdens threaten growth as central banks raise interest rates to fight inflation, U.S. hiring stalls and Europe deepens austerity measures. China and Brazil may see expansion cut by at least 50 percent in the next few years, according to economic consulting firms A. Gary Shilling & Co. and Capital Economics Ltd.
Credit is expanding in developing nations after a decade of relative economic stability. Brazil has experienced boom-and-bust cycles of inflation, currency devaluations and interest-rate swings since the end of military government in 1985. Almost half of Chinese bank loans turned sour following the Asian financial crisis, while hundreds of Russian banks were shut when the government defaulted on $40 billion of ruble debt in 1998.
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