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100 trillion dollars reached the global debt

The debts of public and private sector worldwide has reached the amount of 100 trillion dollars by mid 2013, mainly due to large bond issues by countries and companies amid the economic crisis, as was announced by the Bank for International Settlements. In 2007, the global debt stood at 70 trillion, said the umbrella organization of 60 central banks in a communication that was published in Basel, Switzerland. Much of the growth came from government programs to stimulate economic growth and saving banks, the BIS noted.

Bank for International Settlements

Bank for International Settlements

Governments have total debts of 43 trillion, an amount increased by 80% compared with mid 2007. The BIS noted that bonds tend increasingly held by investors in the countries where they are issued. This indicates that the process of international financial integration may be partly reversed by the crisis, said the Bank experts. The financial sector has become less globalized while, according to the report.

Dollar

Dollar

The banks are becoming more reluctant to lend across borders and the volume of interstate lending fell again in the third quarter of 2013. The interbank lending also declined, with Europe shows the most clear downward trend, noted by the BIS.

By Nicole P.

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