India, Indonesia sell-off different from 1997: Fitch
The agency defends its stable outlook for both countries, arguing they have stronger credit profiles and have made economic adjustments. It warns the one to watch could be China.
An investor exodus from India and Indonesia has led many to compare today’s emerging market volatility to the Asian financial crisis of 1997-98.
The amount of debt in Asia held by foreign investors today is high – over 40% of Indonesian bonds are held offshore, similar to the lead-up in the 1997 crisis, when local companies and banks borrowed substantial amounts from abroad.
India’s central bank implemented liquidity tightening measures earlier this month to boost the weakening …
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