IMF chief urges US and wealthy nations to cut debt
Summarised from 2 outlets · Updated 14 Oct, 10:34 · Archive
The IMF chief says the US and other wealthy nations must urgently reduce debt to ease pressure on low-income countries.
The head of the International Monetary Fund said Wednesday that the US and other wealthy nations must urgently tackle mounting global debt levels that are straining the global financial system and weighing heaviest on low-income countries.
IMF Managing Director Kristalina Georgieva said that while US Treasury Secretary Scott Bessent and other US leaders recognize the federal deficit and national debt have grown too high, economic growth alone will not solve the problem. 'Growth, of course, helps, but it cannot deliver fast enough the necessary adjustments,' Georgieva said at the autumn meeting of the IMF and World Bank in Bangkok. She said 'there is no magic' and called for additional measures, saying the direction must be 'tightening that, bringing it down, bringing deficit down.'
Rising debt levels and global inflation, partly resulting from high energy costs due to the Iran war, have pushed interest rates to multidecade highs, adding to the burdens of the world's poorest nations. Rodrigo Valdes, director of the IMF's Fiscal Affairs Department, said 'fiscal risks are rising, and a proper reaction is largely absent in many countries', noting that the effects of fiscal indiscipline in major advanced economies reach beyond their borders.
How it is being reported
- IMF chief urges the US and other wealthy nations to rein in debt to ease global economic pressureThe head of the International Monetary Fund says the United States and other wealthy nations need to urgently tackle mounting global debt levels that are weighing heaviest on low-income countries.News4Jax · 14 Oct, 09:45
- IMF chief urges the US and other wealthy nations to rein in debt to ease global economic pressureThe head of the International Monetary Fund says the United States and other wealthy nations need to urgently tackle mounting global debt levels that are weighing heaviest on low-income countries.Clickorlando · 14 Oct, 09:45
In this story: International Monetary Fund · Kristalina Georgieva · United States · Scott Bessent · Rodrigo Valdes · Bangkok
This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem
Comments (0)