Connect with us

Latest News

BREAKING: IMF Warns Nigeria, Others Against Borrowing From China, Saudi As Global Public Debt Hit 92% Of GDP



The International Monetary Fund (IMF) has called on governments and finance ministers of member states to use fiscal policy tools to curb the rate at which they borrow to finance their budgets. The IMF’s Deputy Managing Director, Gita Gopinath made the call in her introductory remarks for the conference, “Fiscal Policy in an Era of High Debt,” in Washington.…CONTINUE READING

Gopinath said debt levels had been rising across countries for some time which she said calls for caution as to where countries borrow from especially the non-Paris club creditors like China, India, and Saudi Arabia.

According to her, since the mid-1970s, global public debt tripled to reach 92 percent of GDP by the end of 2022.

She said, “Rising deficits and debts in countries such as the United States have serious ramifications for emerging and developing economies, who are hit by rising rates and weaker currencies. And many economies, particularly low-income countries, are already in debt distress.

“The combination of record-high global debt levels, higher for longer interest rates, and weak growth prospects poses a triple challenge for policymakers. In a shock-prone world, very few countries will have the fiscal space to support their economies.


“To help our 190 member countries navigate these challenges, we need a renewed focus on fiscal policy to make sure it is fit for purpose.”

The IMF Deputy MD explained that demands on government budgets are increasing—from delivering social support to financing the green transition, to bolstering defense spending and a renewed push for industrial policies.

She said, “It is politically difficult to cut spending or raise taxes—debt-financed spending may still seem tempting. But that would be a grave mistake, setting debt on an unsustainable trajectory as borrowing costs rise sharply.

“Revenues also need to keep up with spending. For our part, the IMF must balance our cautionary policy advice with an understanding of the economic and social forces underpinning these political choices.”


She alluded to how in the past two years, central banks have grappled with how to address elevated and persistent inflation levels.

Gopinath said in several cases, fiscal policymakers have not been in sync with monetary policymakers which she believes has complicated the fight against inflation.

She advised governments to evaluate vulnerabilities arising not only from public debt levels, but also from the composition of debt including the identity of creditors, currency and maturity composition that apply.

The IMF Deputy MD added, “The change in the creditor landscape, with a growing number of non-Paris club creditors like China, India, and Saudi Arabia, has implications for the processes involved in debt restructuring.


“While important progress has been made, a lot more is needed for countries to receive timely debt relief.”

Politics8 mins ago

FCT Ministry Pledges Support To House Committee On FCT Area Councils

Politics19 mins ago

Third Republic lawmakers besiege NASS, demand payment of salaries, entitlements

Politics20 mins ago

Benue Assembly Crisis: We Suspended Four Lawmakers Over Plot To Embarrass Alia

Politics21 mins ago

2023 elections: Court remands APC Chieftain over vote-buying

Politics23 mins ago

Nasarawa Assembly approves Gov Sule’s N199.9bn budget

Latest News23 mins ago

UN urges Nigerian Military to review rules of engagement

Politics26 mins ago

Governor Alia Vs SGF George Akume: Is Primate Ayodele’s Prophecy Coming To Pass?

Politics28 mins ago

Dep senate president, army committee demand probe of Kaduna bombing

Politics29 mins ago

Majority leader confirmed attempt to impeach Speaker

Politics30 mins ago

Bode George: Ownership of Lagos controversy ‘disheartening, shameful, embarrassing’

Latest News38 mins ago

Israel approves new settlement in east Jerusalem: NGO

Politics40 mins ago

Benin Republic Seeks Stronger Ties With Nigeria

Politics41 mins ago

Japa syndrome, sample of bad leadership in Nigeria — Oloyede

Politics46 mins ago

Vladimir Putin, flanked by Russian fighters, jets into Middle East to meet Saudi’s MbS

Latest News47 mins ago

BREAKING: Corps member donates N6.5m 3-classroom block, offices to Plateau community

Latest News48 mins ago

I’m president of a tiny US nation with 38 residents where onions are banned and you’re jailed for having spinach

Politics50 mins ago

Senate draws battle line with NNPC GCEO, Kyari, issues 24-hour ultimatum to appear

Politics51 mins ago

CDS Musa: The silent achiever

Politics52 mins ago

Nasarawa Speaker Pledges To Prioritize Staff Welfare, Warns Against Indiscipline

Latest News53 mins ago

Och’Otukpa loses wife, Jennifer Onyeche Ekele

Politics20 hours ago

Why I am angry with Pres. Tinubu and his team

Health13 hours ago

Squeeze 1 Lemon, Mix It With 1 Tablespoon Of Olive Oil And You Will Use This Mixture Forever

Health12 hours ago

To Avoid Cancer, Avoid Excessive Consumption Of These Three Substances

Latest News8 hours ago

UNIOSUN Medical Student Dies Of Asthma Attack

Politics23 hours ago

Kogi Gov’ship Election Petition Tribunal Should be Relocated From Lokoja – Uk’omu Igala

Latest News20 hours ago

BREAKING: Popular Adult Film Actress Dies At 36 After Her Boyfriend Died At 34

Sports12 hours ago

Final Premier League Table After Today’s Matches as Arsenal extend their lead over Liverpool in the Title Race

Latest News7 hours ago

How to Apply for the Presidential Palliative Loan Scheme 2023 – Get Up To N1 Million-N1 Billion

Politics20 hours ago

BREAKING: FG, States Borrowing Workers’ N11trn Contributory Pension Funds At Low-Interest Rate – Oshiomhole

Sports7 hours ago

I Am In Talks With A New Goalkeeper For Super Eagles At AFCON – Peseiro Tells NFF, Minister For Sports

Latest News9 hours ago

Los Angeles Chef Confessed He Cooked His Wife’s Body for Four Days to Dispose of It

Latest News6 hours ago

Port Harcourt Refinery To Commence Production December

Politics20 hours ago

FIRST Time A Man (TINUBU) Who Fought For Democracy Became President Of Nigeria (VIDEO)

Health12 hours ago

Simple Ways To Eliminate Cockroaches From Your Home

Sports20 hours ago

Martinelli instantly goes from Arsenal hero to zero ‘bottling it’ for Luton goal

Politics11 hours ago

FLASHBACK: Okorocha is my brother, I have begged him for forgiveness – Uzodinma

Health23 hours ago

Why relationships and marriages don’t last long again

Politics12 hours ago

Osun APC, PDP clash over Adeleke’s plan to extend Ilesa water contract lifespan

Latest News12 hours ago

Tertiary Institutions Defy Academic Tradition, Graduate Students Without Matriculation

Latest News6 hours ago

100 Ondo State Lawyers Demand Resignation of Attorney General