IMF urges advanced economies to rein in debt as bond yields surge

IMF headquarters in Washington D.C.

BANGKOK: The International Monetary Fund (IMF) has urged advanced economies to take immediate action to curb rising public debt, warning that mounting borrowing costs and bond yields at their highest levels in decades are increasing pressure on government finances.

Global public debt has reached its highest level since World War II and is approaching 100 percent of global gross domestic product (GDP), the IMF said.

Era Dabla-Norris, deputy director of the IMF’s Fiscal Affairs Department, said Wednesday in Bangkok that governments needed to create sufficient budgetary room to manage rising spending on defense, aging populations and other priorities.