Global debt reached $226 trillion in 2020 as it rose by an “unprecedented” $27 trillion from 2019, the IMF estimated. Vitor Gaspar, director of the IMF’s Fiscal Affairs Department, said this extraordinary jump in debt poses threats to financial stability and public finances. However, countries with a highly credible fiscal policy will fare better due to their healthier access to bond markets, Gaspar said. This access will prove to be critical in uncertain times like the pandemic. “Fiscal credibility pays off," he added. He pointed out that while rich countries have played important roles in easing fiscal vulnerabilities of low-income countries, “much more could be achieved if rich countries would make part of their resources available to the developing world.”