International Monetary Fund Managing Director Kristalina Georgieva has warned that rising global borrowing costs and increasing public debt are creating fresh challenges for developing and low-income economies. Speaking at the G20 Finance Ministers and Central Bank Governors meeting, Georgieva said higher yields in advanced economies are pushing up borrowing costs across emerging markets.
The IMF chief said many developing countries are already facing high refinancing needs and rising debt-service costs. This is limiting their ability to spend on critical areas such as infrastructure, healthcare and education, potentially affecting economic growth and long-term debt sustainability.
Georgieva also noted that global public debt is now close to 100% of world GDP and is expected to rise further. The IMF is calling for stronger fiscal policies, improved debt management and faster restructuring of unsustainable debt to help vulnerable economies build financial resilience.