Frontier markets and Mena oil-importers most exposed to funding shock, Moody’s says – The National

Frontier markets and Mena oil-importers most exposed to funding shock, Moody’s says – The National

Low-rated frontier markets and oil-importing countries in the Middle East and North Africa (Mena) region are most exposed to an extended funding shock amid the tightening of global financial conditions and monetary policy owing to Russia’s war in Ukraine, Moody’s Investors Service said.

Borrowing costs are expected to rise steeply while currency depreciation could increase debt burdens for countries with significant foreign currency exposure, the rating agency said in a report.

Capital outflows amid the tightening of global financial conditions would weaken their external stability.