Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has called on countries worldwide to prioritize reducing their debt burdens, warning that excessive debt “suffocates economies.”
Speaking on Monday during a Civil Society Organisation (CSO) town hall at the ongoing annual meetings of the World Bank and IMF, Georgieva highlighted the risks that high debt levels pose to economic resilience.
Amidst her remarks, the Debt Management Office (DMO) recently announced that Nigeria’s total public debt reached N152.39 trillion ($99.65 billion) as of June 30, with domestic debt at N80.55 trillion ($52.67 billion) and external debt at N71.84 trillion ($46.98 billion).
Georgieva emphasized that while debt levels in advanced and emerging economies continue to rise, some low-income countries are seeing declines in debt primarily because they lack access to financing. However, she noted that managing debt remains an “incredibly difficult” challenge for these nations.
“The consequences are that we have to be much, much more focused on bringing debt levels down, because very high levels of debt suffocate economies,” Georgieva said.
She further stated that the IMF will focus on policies aimed at helping countries reduce their debt and build greater economic resilience.
Nigeria is currently classified by the World Bank as a lower-middle-income economy.
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