July 8, 2020 / 2:15 PM / a month ago

IMF calls for global fiscal reform after coronavirus crisis

FILE PHOTO: The International Monetary Fund (IMF) headquarters building is seen ahead of the IMF/World Bank spring meetings in Washington, U.S., April 8, 2019. REUTERS/Yuri Gripas

TOKYO (Reuters) - The International Monetary Fund (IMF) is concerned about rising debt in both emerging and advanced economies due to coronavirus stimulus spending, and it will urge countries to tackle fiscal reform once the pandemic ends, its deputy managing director Mitsuhiro Furusawa said on Wednesday.

For the first time ever, global public debt is seen rising to above 100% of combined GDP after governments responded to the health crisis, Furusawa said.

“Once the economy gets back on track, (a) medium to long-term fiscal framework must be created to manage public finances accordingly,” Furusawa told an online panel discussion organised by Columbia Business School’s Center on Japanese Economy and Business.

“That will be among the utmost priorities for our policy recommendations.”

Reporting by Tetsushi Kajimoto; Editing by Catherine Evans

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