Yahoo – A wave of debt in emerging and developing nations has grown faster and larger than in any period of the last five decades and could end with another crisis, the World Bank warned Thursday. And if the wave breaks, it could be more damaging since it would engulf private companies in addition to governments, at a time when economic growth is sluggish, according to a new report that covers four debt surges from 1970-2018. “The size, speed, and breadth of the latest debt wave should concern us all,” World Bank President David Malpass said in a statement. “Clearly, it’s time for course corrections,” he added.

The World Bank and International Monetary Fund have been sounding the warning about growing global debt for years, but the latest report is even starker and turned up the volume on its calls for governments to take steps to prevent a debt crisis. IMF chief Kristalina Georgieva on Thursday said developing nations in Africa especially need to strike the right balance between financing development and a manageable debt level. – Surging to $188 trillion – The IMF reported that total global debt rose to $188 trillion at the end of 2018, equivalent to nearly 230 percent of the world’s economy. READ MORE