IMF warns of unsustainable infrastructure debt

Tokyo

WITH the Asian Infrastructure Investment Bank (AIIB) set to open its doors for business by the end of this year, adding significantly to the amount of external financing available for infrastructure investment in Asian and other developing economies, concerns are rising over debt sustainability in these countries.

In a report published on Wednesday, the International Monetary Fund (IMF) warned of the risks that developing countries could face by incurring large debts related to infrastructure spending in the absence of proper public debt management systems.