IMF tells advanced economies to 'bring debt down' as borrowing costs rise

Image source, Getty Images Image caption, Kristalina Georgieva, managing director of the IMF, issued a warning on debt levels at the UN general assembly meeting in New York City.

The world's advanced economies including the UK and US need to cut borrowing and reduce debt levels following weeks of spiralling government interest costs, the head of the International Monetary Fund (IMF) has warned.

In an exclusive interview, Kristalina Georgieva said global economic shocks had been "pushing debt levels up like a staircase not to heaven" but that governments had taken "no action to contain that service cost".

"[It's] time to take that action," she said, adding that "courage" was needed by politicians to take the necessary steps.

The intervention comes as government borrowing costs have surged in response to wars disrupting the supply of oil, which has fuelled inflation.