Developing world's 'complex' debt could raise costs, stall restructurings, Lazard says
Key takeaways
- Developing world's 'complex' debt could raise costs, stall restructurings, Lazard says 1 / 2 A view of the central business district is seen from a roof top in Lagos.
- LONDON, June 11 (Reuters) - Increasingly complex debt in the world s emerging markets could raise borrowing costs and delay debt restructurings, advisory firm Lazard said on Thursday.
- But top advisory firm Lazard has warned in a paper published on Thursday that the shift - praised by some investors as an innovative way to diversify borrowing - could come with a sting in the tail.
Developing world's 'complex' debt could raise costs, stall restructurings, Lazard says 1 / 2 A view of the central business district is seen from a roof top in Lagos. A view of the central business district is seen from a roof top in Lagos, Nigeria March 16, 2020. REUTERS/Temilade Adelaja By Karin Strohecker Thu, June 11, 2026 at 7:13 PM GMT+7 2 min read By Karin Strohecker
LONDON, June 11 (Reuters) - Increasingly complex debt in the world s emerging markets could raise borrowing costs and delay debt restructurings, advisory firm Lazard said on Thursday.
The proliferation of intricate debt, whether loans backed by collateral or bonds linked to economic growth or exports, has exploded since 2020, driven by aid cuts by rich nations, high borrowing costs and risk aversion due to everything from COVID-19 to Russia s invasion of Ukraine.