IMF Warns UK and US Over "Spiralling" Debt Costs

The International Monetary Fund has warned the United Kingdom and the United States to take action on rising debt costs, with IMF Managing Director Kristalina Georgieva telling the BBC that economic shocks had pushed "debt levels up like a staircase, not to heaven."

Georgieva's remarks point to concern at the IMF over the trajectory of government borrowing in major advanced economies, as debt servicing costs climb amid higher interest rates and persistent fiscal pressures.

The comments come as both the UK and US governments face scrutiny over their public finances, with rising debt levels raising questions about long-term fiscal sustainability and the room governments have to respond to future economic shocks.

The IMF has periodically urged its member countries, including advanced economies, to adopt more disciplined fiscal policies in order to build resilience against future downturns and to avoid debt burdens becoming unsustainable over time.

Georgieva's warning did not specify particular policy recommendations for the UK or US, though the IMF has in the past called for a combination of spending restraint and revenue measures to help stabilize debt trajectories in highly indebted economies.