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IMF chief warns wealthy nations must cut debt
The IMF says the US and other rich countries must urgently tackle mounting global debt that is straining the world's poorest nations and the financial system.
In brief
The IMF says the US and other rich countries must urgently tackle mounting global debt that is straining the world's poorest nations and the financial system. IMF Managing Director Kristalina Georgieva told wealthy nations they must cut deficits and debt levels, as rising interest rates and global inflation are…
IMF chief sounds alarm on global debt
IMF Managing Director Kristalina Georgieva told the autumn meeting of the IMF and World Bank in Bangkok on Wednesday that the US and other wealthy nations must urgently tackle mounting global debt levels.
US debt exceeds forty trillion dollars
Georgieva said Treasury Secretary Scott Bessent and other US leaders recognize that the federal deficit and national debt are too high. The US national debt exceeds forty trillion dollars.
Growth alone cannot fix the problem
Georgieva said economic growth alone would not be enough to address the country's debt. Rising bond yields reflecting higher investor risk premiums have been disrupting financial markets.
Deficit reduction is necessary
Georgieva said other measures beyond growth would be needed. She stated there is no magic and that countries must tighten spending and bring deficits down.
“There is no magic. You have to go in a direction of tightening, bringing it down, bringing the deficit down.”
Poor nations hit hardest by rising rates
Rising debt levels and global inflation, partly from high energy costs due to the Iran war, have pushed interest rates to multidecade highs. This adds to burdens on the world's poorest nations.
Developing countries face impossible choices
Among the world's poorest countries, interest payments have reached historic highs relative to revenue.Declining aid is creating gaps that some countries cannot finance, forcing them to choose between supporting vulnerable people and meeting debt obligations.
UK calls for new global debt deal
UK Foreign Secretary Ed Miliband said the Global South is paying the price for rising interest rates in wealthier countries.
“The Global South is paying the price for rising interest rates in wealthier countries.”
Jobs initiative launched for developing world
The UNDP announced its Jobs for Prosperity initiative to bring together governments, development banks and private businesses to encourage investment in tourism, healthcare and food processing as more than one point two billion young people…
In short
IMF Managing Director Kristalina Georgieva told wealthy nations they must cut deficits and debt levels, as rising interest rates and global inflation are pushing the world's poorest countries toward financial crisis.
