A handful of the more vulnerable Frontier Markets, including Ukraine, Pakistan and Bahrain, have received (or are close to getting) IMF or bilateral funding, but external risks remain a key concern. For one thing, meeting the conditionality of these financing deals will be difficult – particularly as it will entail painful fiscal tightening. More generally, external vulnerabilities in Frontier Markets are worse than in the larger Emerging Markets. Several Frontier Markets appear to have weaker external positions than even Turkey and Argentina, both of which suffered currency crises this year.
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