IMF fiscal affairs deputy director Era Dabla-Norris said the situation was even worse in low-income countries, where interest payments consumed an average of 15% of tax revenues. (EPA Images pic)BANGKOK: The International Monetary Fund on Wednesday called for advanced economies to "act now" to address ballooning debt, with spiking bond yields at multi-decade highs and pressure growing on central banks to hike interest rates.
Global public debt is at its highest level since the Second World War and on track to soon exceed 100% of global gross domestic product, and the Fund lamented the lack of any major progress in reversing the trend.
"The fundamental message (is) that countries need to act now, particularly if you have high levels of debt, in order to create that room for higher spending pressures," said Era Dabla-Norris, the Fund's deputy director at the Fiscal Affairs department, referring to spending on defence, ageing populations and other priorities.
