EMD after Argentina: Four more vulnerable countries to avoid

Argentina defaulted on its debt payments late last month after talks between a group of bondholders and the country collapsed, but it is not the only emerging market which looks vulnerable to a financial shock.

Argentina was officially declared in default at the end of July - the second time it has defaulted - after a consortium of hedge funds which had bought the country's discounted debt from its last default demanded full repayment of some £766m. Argentina responded by saying it could not afford to pay back the debt and, with no deal agreed, Standard & Poor's (S&P) downgraded the country, labelling it in default. Commentators agree Argentina's technical default is not as severe as last time, when there was rioting in the country after savers' accounts were frozen. Indeed, it was widely ex...