Legal News

Bank for International Settlements Says Global Debt Crossed $100 Trillion in 2013
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

In a world economy that’s still fighting to come to terms with itself, it seems the planet’s governments are slowly going bankrupt, as according to the Basel-based Bank for International Settlements, the global amount of outstanding debts already reached $100 trillion in mid-2013. The situation, according to the umbrella organization of 60 central banks, has largely been caused by mass issuance of bonds by businesses and governments to combat the global economic crisis.

According to the BIS, in 2007, the global amount of outstanding debts was $70 trillion, but currently it is more than $100 trillion. Especially hard hit are governments of nations, which currently have a total of $43 trillion outstanding in their domestic markets – an amount which is 80 percent higher than what it was in 2007.

  
What
Where


The BIS, known as the central bank of central banks noted that markets and governments had withdrawn from globalization and cross border transactions since the economic recession, and this has led to over-dependence on domestic markets.

The global debt situation has been aggravated, the BIS noted by a shift in lending and borrowing patterns where financial capital is increasingly being sought through debt markets rather than through bank lending. With banks losing trust governments focused on regulations to curb lending in the financial sectors and issuing debt.

Andreas Shrimpf and Branimir Gruic, the analysts authoring the BIS report, said the trends in global money lending has been reversed and cross-border investments in global debt securities have declined from pre-recession years. Between 2007 and 2012, the share of debt securities held by cross-border investments fell by 3 percent.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




The report observed, “This reversed the trend in the pre-crisis period, when it had risen by 8 percentage points from 2001 to a peak in 2007. It suggests that the process of international financial integration may have gone partly into reverse since the onset of the crisis.





 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Mid-level Litigation Attorney with motions experience

USA-WA-Seattle

Seattle office of our client seeks mid-level litigation attorney with 3-5 years of experience, inclu...

Apply Now

Environmental /Land Use Attorney with 2-3 years of experience

USA-CA-San Francisco

San Francisco office of our client seeks environmental /land use attorney with 2-3 years of experien...

Apply Now

Litigation Attorney with 2-5 years of insurance defense experience

USA-FL-Jacksonville

Jacksonville office of our client seeks litigation attorney with 2-5 years of previous insurance def...

Apply Now

Attorney with 5+ years of complex litigation experience

USA-MI-Detroit

Detroit office of our client seeks attorney with 5+ years of complex litigation experience. The cand...

Apply Now

RELEVANT JOBS

Experienced Insurance Defense Attorney Needed

USA-NY-Bohemia

Insurance Defense firm (with 15 attorneys in Suffolk and Mineola location), seeks attorneys with 5+ ...

Apply now

ASSOCIATE ATTORNEY

USA-TX-Houston

INSURANCE DEFENSE / TRANSPORTATION LITIGATION Law firm located in North Houston seeking an associ...

Apply now

Hotline & Training Managing Attorney (IMMIGRATION)

USA-NY-New York City

Summary: The Hotline & Training Services Managing Attorney will guide, develop, and supervise the Ho...

Apply now

Legal Assistant / Paralegal

USA-TX-Houston

Our  law firm is currently seeking a qualified applicant to fill the position of a Legal Assist...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top