IMF Calls on Wealthy Countries to Reduce Global Debt Burden

International Monetary Fund (IMF) Managing Director Kristalina Georgieva has urged the United States and other wealthy countries to bring rising public debt under control. She said the growing debt burden is particularly affecting low-income countries and increasing risks to the global financial system.

According to Georgieva, the US national debt, which has exceeded $40 trillion, cannot be reduced through economic growth alone. Cutting the budget deficit and strengthening fiscal discipline are essential.

The IMF says high interest payments and declining international aid are limiting the financial capacity of poorer countries. On average, developing countries pay three times more in interest on their debt than advanced economies.

Alexander De Croo, head of the United Nations Development Programme (UNDP), said rising borrowing costs, along with high energy and fertilizer prices, are making economic recovery more difficult for these countries. He stressed the importance of job creation and increased investment.

To address these challenges, UNDP has launched the “Jobs for Prosperity” initiative to encourage investment in sectors such as tourism, healthcare and food processing. Meanwhile, the IMF, the Bank of Thailand and the World Bank have introduced the “Bangkok Plan” to combat financial fraud and cybercrime.