International Monetary Fund or IMF stated yesterday that global public debt is expected to approach 100 percent of global GDP by the end of the decade. In other words, we would owe as much as we generate in one year. And this is worse than what we had during the pandemic, the fund noted.

Governments are wrestling with tight budgets. And now with trade policy uncertainty, the fiscal trade-offs are going to be even more complicated. This is a problem everywhere in countries rich and poor, but it is particularly painful for emerging markets and developing economies, where the mounting cost of servicing debts is squeezing their ability to make investments and to respond to shocks.

It is against this backdrop that at the Fund has been doing extensive work on issues of global debt architecture and sovereign debt restructurings.

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