AFP, WASHINGTONA wave of debt in emerging and developing nations has grown faster and larger than in any period of the past five decades and could end with another crisis, the World Bank warned on Thursday. If the debt wave breaks, the crisis could be more damaging, as it would engulf private companies in addition to governments at a time when economic growth is sluggish, the World Bank said in a report that covers four debt surges from 1970 to last year. “The size, speed and breadth of the latest debt wave should concern us all,” World Bank president David Malpass said in a statement. The IMF reported that total global debt rose to US$188 trillion at the end of last year, equivalent to nearly 230 percent of the world’s economy. Better debt management, improved tax collection, flexible exchange rates and tighter fiscal rules to manage spending could help avert a crisis and soften the blow if one occurs, the World Bank said.
