Companies around the world are defaulting in loan payments
[ad_1]
According to a Bloomberg analysis, real estate has the highest stressed loans of $168.3 billion. Similarly, $62.7 billion in telecommunications, $62.6 billion in healthcare, $35.5 billion in software and services and $32.6 billion in retail are stuck. In other sectors it is $ 228.2 billion. $785 billion of debt is to be repaid in the next few years. Growth has slowed down in China and Europe. In such a situation, it is difficult for the companies to repay such a huge loan. Its effect has started showing. In America alone, more than 120 big companies have gone bankrupt this year.
highest debt
Moody’s Investors Service says that the number of defaulting companies is expected to increase by 5.1 percent next year. In the period of one year till June, this rate was 3.8 per cent. In the worst case, it can go up to 13.7 per cent, which is higher than the recession of 2008-09. As defaults increase, investors and banks will shy away from lending. This will reduce the financing options and more and more companies will go into distress. Due to this, companies will go bankrupt and the pressure on the labor market will also increase. If unemployment increases, it will have a direct impact on consumer spending. Most of the bad loans are in the real estate sector. The reason for this is the crisis in this sector in China. Many companies in this sector in China have defaulted in repaying loans.
[ad_2]
Source link
