In its new report, credit rating agency Fitch stated that pressures have eased due to steps such as the shift toward a more traditional and consistent policy mix following the election and the normalization of monetary policy, but emphasized that risks regarding refinancing still persist.
LISTED THE REASONS FOR THE RISK
Fitch cited exposure to foreign currency effects, wholesale funding, and increasing short-term foreign currency-denominated borrowing as reasons for the continued risk.
Stating that the total external debt of banks rose slightly to 126 billion dollars in the first half of 2023 and that short-term external debt remained high at the 90 billion dollar level as of the end of the first half, Fitch noted that it expects long-term issuances to cause a slight decrease in the share of short-term debt due to uncertainty regarding the effects and sustainability of new policies.
News Source: 12punto
