An increasing number of emerging and developing economies are experiencing financial distress, raising the risk of a wave of sovereign debt defaults. This financial distress is occurring against the backdrop of higher food, energy and import prices. A few countries, including Sri Lanka and Zambia , have already defaulted on their external debt payment obligations, while a much larger number — including Bangladesh , Ghana, Pakistan , and Serbia — has approached the International Monetary Fund to request financing, often a precursor for sovereign debt restructurings. Though beset by a variety of economic and financial problems of their own, larger emerging economies like China , India, Mexico and Brazil have a fair net external debt positions on account of low debt, large foreign exchange reserves, or both. As of July, Bloomberg estimated that $240 billion worth of sovereign debt is trading in distressed territory, meaning at high risk of default.