BIS warned that dollar loans to Chinese banks and companies are rising at annual rate of 47pc and now stand at $1.1 trillion
By Ambrose Evans-Pritchard
Bank for International Settlements concerned about underlying health of world economy as dollar loans to emerging markets increase rapidly
Off-shore lending in US dollars has soared to $9 trillion and poses a growing risk to both emerging markets and the world’s financial stability, the Bank for International Settlements has warned.
The Swiss-based global watchdog said dollar loans to Chinese banks and companies are rising at annual rate of 47pc. They have jumped to $1.1 trillion from almost nothing five years ago. Cross-border dollar credit has ballooned to $456bn in Brazil, and $381bn in Mexico. External debt has reached $715bn in Russia, mostly in dollars.
