Top economies face higher costs as €5.8tn of debt matures

GOVERNMENTS of the world’s leading economies have more than €5.8 trillion of debt maturing this year, with most facing a rise in borrowing costs.

Led by Japan’s €2.32tn and the US’s €2.15tn, the amount coming due for the G-7 nations and Brazil, Russia, India and China is up from €5.72tn last year, according to data compiled by Bloomberg. Ten-year bond yields will be higher by year-end for at least seven countries, forecasts show.

Investors may demand higher compensation to lend to countries that struggle to finance increasing debt burdens as the global economy slows. The International Monetary Fund cut its forecast for growth this year to 4% from a prior estimate of 4.5% as Europe’s debt crisis spreads, the US struggles to reduce a budget deficit exceeding $1tn (€770 billion) and China’s property market cools.