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FINANCIAL TERMS
Debt Maturity Wall
Description
Debt maturity wall means a large amount of debt that will come due around the same period.
In simple terms, it is when many loans or bonds need to be repaid or refinanced soon.
A debt maturity wall is important because borrowers may face pressure if interest rates are high or credit conditions are tight when debt comes due. Companies or governments may need to refinance at higher costs.
For example, if many companies must refinance bonds in the same year, investors may worry about a debt maturity wall.
A debt maturity wall does not always cause a crisis. Strong borrowers may refinance easily, but weaker borrowers may struggle.