Archive · 11 Oct 2026
Iran War and Rising Debt Loom Over IMF-World Bank Meetings
Finance leaders are meeting in Bangkok while a war involving Iran is disrupting energy supplies.
When fuel and fertilizer cost more, families and businesses can face higher prices.
The World Bank says several pressures are happening together, including high debt and the possibility of very hot weather.
The IMF expects the world economy to grow, but many countries may struggle.
Governments also owe a lot of money, and paying it back can leave less to spend on other needs.
Some developing countries worry that IMF loans could require difficult changes and spending cuts.
The meetings will also take place amid arguments about the war, oil supplies and sanctions.
The World Bank says it is watching events but has not lowered its global growth forecast.
The Iran war, energy supply disruptions and rising interest rates are expected to dominate IMF and World Bank meetings in Bangkok.
World Bank President Ajay Banga said pressures from energy and fertilizer prices, debt and a possible strong El Niño are building, though the Bank has not revised its growth forecasts.
The IMF expects global growth of about 3% in 2026, while warning that public debt is at its highest level since World War Two and could exceed 100% of GDP before 2030.
Developing countries face high debt-service costs and concerns that proposed IMF loan conditions could require deeper reforms and painful spending cuts.
US Treasury Secretary Scott Bessent will miss the meetings; the report also cites disputes over energy measures, Russia sanctions and IMF lending conditions.
- Who
- Finance officials, the International Monetary Fund and the World Bank; US Treasury Secretary Scott Bessent will not attend.
- What
- Annual IMF and World Bank meetings are expected to focus on the Iran war, energy and inflation pressures, and high public debt.
- When
- This week, according to the report, published October 11.
- Where
- Bangkok, Thailand.
- Why
- The war and related energy disruption, higher interest rates and mounting debt pose risks to economic growth and vulnerable countries.
Critics of IMF conditions
IMF policy rationale
Loan conditions and spending cuts
Critics of IMF conditions
Debt-justice advocate Iolanda Fresnillo said countries are already cutting spending to meet debt payments and IMF conditions, and warned that deeper reforms could worsen the situation.
IMF policy rationale
The IMF is recommending fewer but deeper reforms as conditions for lending; the article does not provide the IMF's detailed rationale for the change.
Russia sanctions waiver
Critics of IMF conditions
Ukrainian President Volodymyr Zelenskiy criticized President Donald Trump's announced deal with Russia and a temporary waiver of US sanctions.
IMF policy rationale
Trump said the deal would provide more diesel to global markets; the report says he is seeking lower gasoline prices before November elections.
- Meeting venue
- Bangkok, Thailand; the first time in three years the annual meetings are being held outside Washington.
- Expected attendance
- More than 10,000 travelers are expected in Bangkok.
- IMF growth outlook
- The IMF has signaled little change to its forecast of 3% global growth in 2026.
- Public debt
- The IMF says public debt is at its highest level since World War Two and will exceed 100% of GDP before 2030.
- Developing-country debt costs
- Interest payments average more than 10% of revenue in developing countries, the report says.
- Oil reserves
- G7 countries agreed to release 100 million barrels of diesel and crude oil from emergency reserves.
- US representation
- Treasury Secretary Scott Bessent is absent; two senior officials were dispatched in his place.