IMF Chief Urges Developed Nations Like US and UK to Cut Public Debt

▲ International Monetary Fund (IMF) Managing Director Kristalina Georgieva

International Monetary Fund (IMF) Managing Director Kristalina Georgieva has repeatedly warned major developed countries, including the United States and the United Kingdom, to reduce their public debt.

In an interview with the BBC on the local date of the 23rd, Director Georgieva said, "Due to successive economic shocks, debt levels are soaring like a stairway to somewhere other than heaven, yet measures to curb the cost of servicing it are not being taken."

This warning comes as public debt grows in various countries, bond yields spike, and borrowing costs surge.

The scale of the U.S. government debt exceeded $40 trillion (approximately 53,700 trillion won) for the first time last month, and France's public debt is projected to reach 120 percent of its gross domestic product (GDP) soon.

The UK's debt interest payments rose to 8.8 billion pounds (16 trillion won) last month, marking the highest for any August since 1997.

Delivering the IMF's message to developed nations, Georgieva stated, "Lower debt levels, make fiscal strengthening a top priority, and ensure that central banks fulfill their mandates for price stability."

She went on to emphasize, "It is important to have the courage to take necessary actions. It is politically difficult, but it must be done."

Georgieva pointed out that artificial intelligence (AI) risks, which have recently faced safety controversies, are issues that could also threaten financial stability, noting that the dual drivers of energy price shocks and AI investments are impacting the global economy in opposing directions.

(Photo: Getty Images)

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