Global government debt nears highest level

Global government debt is now near its highest level since World War II. This was stated by the Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva. She was quoted by CNBC.

She believes that developed countries are in the most vulnerable position. Their governments have had a relatively easy time over the past 17 years as interest rates have remained below growth rates. But the increase in these rates put an end to the previous practice.

Georgieva stressed that tensions are already visible in Europe, where problems with German government bonds extend beyond France and Italy to Ireland, Portugal and other countries that have reduced debt and deficits since the eurozone crisis.