EM turns to local funding

摘要

Emerging market borrowers are becoming less and less reliant on foreign money, with an increasing number of borrowers turning to local finance - be it bank loans or domestic bond issuance - to fund operations and growth. Cross-border bank lending to EM borrowers has plummeted by US$673bn - equivalent to 17% of outstanding credit - over the past seven quarters alone, according to Bank for International Settlements data. At the same time, EM companies have also become less active in issuing bonds internationally.