Humanitarian agencies, with an eye on external financing, bewail the lack of development.
The upshot is that the U.S. external financing deficit may actually grow at just the same time as China's ability and appetite to fund it evaporates.
Analysts give diverse reasons for the meltdown, most pointing to the current account deficit fueled by numerous infrastructure mega-projects that rely on external financing in U.S. dollars.
And by banishing residual fears that Brazil could face a shortfall in external financing this year, the agreement might help Brazilian firms to keep foreign credit lines open.
Right now, if Greece were to default on its debt and lose all external financing, it would be forced to immediately cut its non-interest spending from 43.9% of GDP to 39.0% of GDP.
The leader of the party with the second most votes ran on a platform to renege on the austerity agreements already in place with the external financing partners, to raise public pension payments and salaries, etc.
FORBES: Rebellion Against Austerity From Greece To Washington
Despite the efforts of the U.S. Treasury Department and other government agencies to curtail financial flows (both overt and covert) to bad actors, these regimes continue to benefit from the lawful inflows of hard currency and external financing.
Performance in major industrialized economies will help determine the volume of external private financing to Crisis economies, an important determinant of the latter's growth.
Forcing firms to rely more on external sources of financing should give China's capital markets a boost.
Small businesses are more dependent on external sources of financing because they have less ability to offset their exposure to financial crises through hedging and have less access to the bond markets, he said.
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