IMF Chief Urges Faster Debt Cuts, AI Regulation Ahead of Bangkok Meetings

IMF Managing Director Kristalina Georgieva on Wednesday called on countries to accelerate action to curb debt and inequality, warning that economies face a "triple whammy" from the artificial intelligence boom, heavy borrowing and wars in the Middle East and Ukraine. Speaking in Singapore ahead of autumn IMF-World Bank meetings in Bangkok next week, Georgieva said policymakers "cannot keep delaying necessary policy action." Finance ministers and central bank governors from 191 member countries will assess the global economy and discuss financial stability and growth strategies. She flagged risks from the rapid buildout of AI data center capacity, which has driven stock prices to record highs. Should earnings fall short, she warned, hyperscaler leverage and growing global holdings of U.S. equities "could turn a disappointment into a far-reaching shock." Excessive debt burdens wealthy nations including the U.S., Japan and Germany, as well as low-income countries choosing between welfare spending and loan repayment at high interest rates. Georgieva urged governments to rein in public spending, raise borrowing costs as needed to control inflation and protect vulnerable populations, while regulating AI and improving energy security.