IMF chief urges US to rein in $40 trillion debt as poor countries ‘pay the price’

The median developing country pays three times as much in interest as developed countries - (Getty Images for the Peter G. Pe)

The U.S. and other wealthy nations must urgently tackle rising global debt that is placing immense strain on low-income countries and the wider financial system, the head of the International Monetary Fund warned on Wednesday.

IMF Managing Director Kristalina Georgieva said Treasury Secretary Scott Bessent and U.S. policymakers acknowledge that the federal deficit and the national debt, which now stands at more than $40 trillion, are too high. She said economic expansion alone will not solve the issue.