The United Nations Conference on Trade and Development (UNCTAD) has warned developing countries facing a high risk of debt distress against issuing more Eurobonds.
The UN agency, through its latest Trade and Development Report (April 2024), says the issuing of high-risk bonds, also referred to as non-investment grade or junk bonds, attracts high costs due to the risk premium investors demand. This, the report says, has huge implications for the debt dynamics of the affected countries grappling with low economic growth rates.
