OECD, IMF and IIF warn of risks from rising debt in major economies
The three international bodies flagged the dangers of soaring borrowing costs facing the US, France, the UK and Japan, warning of risks tied to $365bn in global debt.
Three major international financial institutions issued warnings this week about the risks of rising debt levels and soaring borrowing costs across large economies, including the United States, France, the United Kingdom and Japan.
The Paris-based Organisation for Economic Co-operation and Development (OECD), the International Monetary Fund (IMF) and the Institute of International Finance (IIF), which represents the global banking industry, each highlighted concerns on Wednesday about the dangers posed by soaring interest rates on roughly $365 billion (£275 billion) of global borrowing.
The warnings point to mounting pressure on government finances in several of the world's largest economies, as elevated interest rates increase the cost of servicing existing debt. The IIF specifically flagged challenges facing the US, France, the UK and Japan, while the OECD and IMF voiced broader concerns about global debt sustainability.
The cautionary statements add to a growing chorus of concern among international financial institutions about the trajectory of public and private debt as borrowing costs remain elevated.
Sources
- Three international bodies warn of risks of rising debt and soaring borrowing in major economies — The Guardian — Business
EGazette summarizes reporting from multiple sources; follow the links for the originals.
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