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Global economy faces corporate debt of $19 tn, warns IMF

R Sinduja

News Editor

The IMF said the low-interest rates encourage companies to take on a level of debt that risks becoming a $19 tn timebomb in the event of another global recession. IMF said that almost 40% of the corporate debt in 8 leading countries makes their service impossible if there was a downturn half as serious as that of a decade ago. It believes countries need to look again at giving tax breaks on debt interest payments.