More small emerging market defaults ‘probable’ in 2023 – Fitch

More sovereign defaults among small emerging and frontier market countries are “probable” next year, ratings agency Fitch said in its 2023 outlook on Monday, citing a likelihood of sudden jumps in borrowing costs, loss of market access and urgent funding needs.

Meanwhile the Group of 20 leading economies’ debt restructuring process, the Common Framework, which is underway in Zambia and Ethiopia and has concluded in Chad, had proven ineffective at facilitating restructurings and was unlikely to improve next year, the ratings agency added.