IMF's Georgieva raises alarm about rising public debt levels

BY Reuters | ECONOMIC | 10/08/25 11:26 AM EDT

WASHINGTON, Oct 8 (Reuters) - International Monetary Fund Managing Director Kristalina Georgieva on Wednesday said she was concerned that public debt was rising more rapidly in advanced economies than low-income countries, and urged countries to address the issue.

In low-income countries, she said high debt service payments were eroding already limited fiscal space for needed spending to help their people.

(Reporting by Andrea Shalal)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article