Subsequently, the European sovereign debt crisis unfolded in which the elevated debt levels coupled with sub-optimal debt structure in some of the European countries (i.e. high share of short-term debt and greater share of foreign investors’ holding) triggered a major rollover risk for these countries (Chart 1). 6.
The contagion emanating from the European sovereign debt crisis coupled with elevated market borrowing requirement amplified the challenges for debt managers in EMDEs, particularly for those who rely significantly on international capital markets for their government market borrowing.