Since the Latin American debt crisis of the 1980s, sovereign-debt crises have become a regular occurrence for emerging and developing economies. Today, Sri Lanka needs a bailout from the International Monetary Fund (IMF) after defaulting on its foreign debt in May, and a growing number of low-income countries are facing similar challenges.
The World Bank estimates that around 60% of all emerging and developing economies have become high-risk debtors. As many as a dozen might default over the next 12 months.
