Fiscal Debt Binge Is World’s Biggest Stability Threat, BIS Says

Government borrowing habits pose the biggest danger to world economic stability and recent shifts in market sentiment should serve as a warning, the Bank for International Settlements said.

Presenting the final quarterly report of his career at the Basel-based institution, senior official Claudio Boriodelivered a parting shot to nations, saying that public-finance repair should be prioritized before any alarm among bond investors takes hold.

“The global fiscal outlook remains acutely worrying,” the retiring head of the institution’s monetary and economic department told reporters. “Government debt trajectories represent the most serious threat to macroeconomic and financial stability.”

In the ...