IMF board member warns of dangerous debt mix as global deficits rise

At a pre-meeting lunch in Bangkok, IMF board member Marnix van Rij warned that a combination of expanding sovereign debt, rising interest rates and heightened defence expenditures is creating a precarious fiscal cocktail. He referenced recent IMF chief Kristalina Georgieva’s call for governments to reduce deficits and noted that borrowing costs have jumped sharply, unsettling investors in major economies such as the United States and France.

Van Rij pointed to the U.S. debt clock, which has climbed since his appointment, and described the American optimism about growth driven by AI as potentially hazardous. He argued that European nations, particularly France, must confront difficult spending cuts despite political constraints, and that any resurgence of a debt crisis in Europe could threaten the global economy. Van Rij contrasted the United States’ approach with the IMF’s traditional role of providing emergency assistance, emphasizing the need for disciplined fiscal policy.