There has been increasing concern that North Korea’s reported bond issues could spark inflation and serious economic contraction. But now, the situation may not be as scary as it once seemed. Here’s why:

The issue

North Korea’s government reportedly issued two types of bonds: in-kind bonds for enterprises and other state institutions, as well as forex-denominated bonds for wealthier North Koreans.

The bonds are believed to total 60% of the value of North Korea’s annual state budget, or roughly between 15% and 20% of the nation’s GDP. Of the bonds, 60% will