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As Rates Near Their Peak, the Pain Begins for Europe's Borrowers
Interest-rate hikes may be peaking in Europe, but for the consumers, companies and governments that borrowed trillions of euros during the era of ultra-low borrowing costs, there’s still plenty of pain in store.Through the end of this decade, borrowers across the continent face repayment on a mountain of debt sold when financing costs were many times lower. Although the adjustment is painful in many places, including the US, it’s a particular shock in Europe, where interest rates were below zero for eight years. Many borrowers have delayed refinancing in the hope that rates would come tumbling down again. But ... (full story)