Washington, Sep 03 (V7N)- International Monetary Fund (IMF) Managing Director Kristalina Georgieva has warned that the continued closure of the Strait of Hormuz is worsening debt pressures on developing countries by increasing borrowing costs worldwide.
She made the remarks in an interview with Reuters on the sidelines of the G20 meeting in the US state of North Carolina, according to Al Jazeera.
Georgieva said inflationary pressures stemming from the continued closure of the strategic waterway, combined with rising global debt levels, are contributing to higher bond yields and increasing borrowing costs.
She warned that the impact is not limited to low-income developing countries. High debt levels and persistent inflation in advanced economies could also raise debt-servicing costs globally.
According to Georgieva, such pressures could affect low-income populations as well as emerging markets and developing economies, making it more difficult for countries to manage their existing debt burdens.
END/SMA/AJ
