Sovereign Debts in the International Financial Market

Abstract

Globalization of world economy is closely connected with increasing of external debts in the international financial market. In 80-90-s of the last century sovereign external debt crises were associated with developing countries only, however, at present the problem of a rapid growth of the developed countries’ external debt is more vital. The article examines dynamics, structure, specifics and major trends in the external debts of the various countries for the last ten years. The comparative analysis has allowed to evaluate the current state and forecast the prospects of the coming external borrowings of Russia. The article has a hypothesis that a rapid growth of the developed countries’ external debts can provoke a new wave of the world financial and economic crisis. The analysis substantiates the need to stimulate the co-operation between international institutions and national regulators in order to hold a unified financial approach to supervising sovereign debts of the different countries.