Boao Forum’s Annual Conference in Hainan Begins Discussing Asia’s Future Vision
March 22, 2016 (EIRNS)—The annual Boao Forum for Asia (BFA), held traditionally in South China’s Hainan province, began its four-day deliberations today. The theme of this year’s conference is: "Asia’s New Future: New Dynamics, New Vision." The focus of discussion will be on areas such as inclusive finance, disruptions of traditional businesses and economic models, new banking practices, regional cooperation, and growing links through reforms and initiatives such as the Asian Infrastructure Investment Bank (AIIB), China Daily reported.
Today, the BFA released a report with its focus on the growing debt crisis. The report said that the risk of debt crisis is threatening major emerging economies and that a serious debt crisis may erupt in the E11 (eleven emerging economies) countries, unless they make urgent "de-leveraging" efforts, Xinhua reported. The report also warned of the possibility of contagious financial crisis among some E11 countries (Argentina, Brazil, China, India, Indonesia, the Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, and Turkey) that are mired in debt with currencies that are depreciating rapidly against the U.S. dollar.
It also said the countries deep in debt have to maintain low interest rates in order to keep up with repayment, which further fuels borrowing and lending.
"Some of them might fall into a vicious cycle of borrowing to return debts when property prices drop or liquidity dries up,"
it said, Xinhua noted.