IMF chief urges advanced economies to reduce debt as borrowing costs rise
IMF Managing Director Kristalina Georgieva has told the BBC that advanced economies need to bring debt down as borrowing costs increase. She said economic shocks had driven debt higher. The available material does not identify specific countries or outline the fiscal measures she supports.
Advanced economies should reduce their debt as borrowing costs rise, IMF Managing Director Kristalina Georgieva has told the BBC. Georgieva said a series of economic shocks had pushed debt levels higher. She described the increase as resembling “a staircase not to heaven”, according to the supplied material.
Her warning combines concern about the amount governments owe with the cost of servicing that borrowing. The source does not identify particular countries, give debt figures or specify the interest rates she was discussing. It also does not set out the measures the IMF chief believes governments should take.
There is no detail on whether she favours spending reductions, higher taxes, stronger growth or another approach. The remarks amount to a call for advanced economies to put debt on a lower path while facing more expensive borrowing. The available material does not say how governments have responded or provide a forecast for the global economy.
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