BIS issues fresh warning as global debt levels rocket

EM economies most vulnerable

The Bank for International Settlements (BIS) has issued a fresh warning over the potential impact of an impeding interest rate hike by the US Federal Reserve on emerging markets.

The Swiss-based BIS said global debt levels are now so high the global economy is exposed to major shocks if the Federal Reserve begins to raise rates. US markets hit as Fed fails to give clear signal on rate hike Claudio Borio (pictured), chief economist at the bank, said: "We are not seeing isolated tremors, but the release of pressure that has gradually accumulated over the years along major fault lines." Debt levels across the globe are now higher than in the pre-crisis days of 2007, the organisation warned, with public and private debt combined up by 36 percentage points since ...