Disclosing Public Debt Boosts Investor Confidence, Cuts Borrowing Costs
you are currently viewing::Disclosing Public Debt Boosts Investor Confidence, Cuts Borrowing CostsJune 12, 2025--Greater debt transparency builds investor confidence, helps reduce borrowing costs, and strengthens debt sustainability-reducing the risk of shocks that can lead to a debt crisis Governments, particularly those in emerging market and developing economies, face both mounting debt service costs and shrinking room to maneuver in government budgets. The result is fewer resources for social programs or investments, reduced capacity to respond to shocks, and higher borrowing costs. In addition to issuing more debt, countries are increasingly using complex and opaque forms of financing. New debt instruments such as guaranteed, securitized, and collateralized debt contracts linked to public-private partnerships, state-owned enterprises, or SOEs, and pension funds have appeared on the scene. Source: IMF.org |
April 14, 2026-The global economy faces renewed tests as the war in the Middle East threatens to disrupt growth and disinflation.
After withstanding higher trade barriers and elevated uncertainty last year, global activity now faces a major test from the outbreak of war in the Middle East. Assuming that the conflict remains limited in duration and scope, global growth is projected to slow to 3.1 percent in 2026 and 3.2 percent in 2027.