The double health and economic shock of Covid will have a lasting impact on emerging countries.
The massive impact on growth jeopardizes their financial sustainability, while the debt has already increased sharply in recent years.
"
Sovereign risk is back on the front of the stage,
" confirms Julien Marcilly, chief economist of credit insurer Coface.
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The debt of emerging countries jumps
The Achilles heel in several countries comes from state enterprises, often poorly managed, in an opacity favoring corruption, and highly indebted.
Like Eskom, the South African electricity company, where a reform aimed at dividing activities between production and distribution has been slipping since 2018, or the heavy oil company Pemex in Mexico.
As a result of mismanagement and underinvestment, as well as falling prices, Mexico's oil production has fallen sharply.
"
The debt of Eskom and Pemex represents almost 10% of the GDP
" of their respective countries, specifies the economist.
“
When activity slows down,
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