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Debt risks: the not so bad, the bad and the ugly

Sovereign debt risks are back in focus as some frontiers appear to be drifting closer to default. We remain most concerned about default risks in Tunisia and Pakistan, particularly in light of this week’s unrest and IMF deals now appear further away. Debt risks are also likely to keep building in Kenya. In contrast, we think the improvement in debt dynamics in Angola is underappreciated.

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