Indebted"zombie" companies are headed for a year of pain as financial conditions continue to tighten, according to one think tank expert. , Sonja Gibbs, the head of sustainable finance at the Institute of International Finance, pointed to upcoming challenges stemming from higher interest rates in the market.
"Over the longer term, it's going to correct the problem of too-easy access to capital, too much debt and so on. In the short term though, higher rates are going to cause a lot of pain," Gibbs warned.
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