As the repayment dates approach for funds raised at zero interest rates during the COVID-19 crisis, global public- and private-sector debt has reached approximately $365 trillion, raising concerns about the risk of higher refinancing costs as interest rates rise.
Global public- and private-sector debt has reached approximately $365 trillion (¥5.7 quadrillion) amid worldwide interest-rate increases, raising concerns about refinancing. More of the funds raised at zero interest rates during the COVID-19 crisis are reaching maturity, and the debt-service burden is expected to increase for fiscally vulnerable countries and lower-rated companies.
Although funds could previously be borrowed at zero interest, conditions have changed, with the 10-year rate also cited as rising to 4-5%. Some observers believe that markets are increasing pressure on countries such as France to take appropriate action.
The increasing debt-service burden could become a heavy burden for countries with weak fiscal positions and lower-rated companies.