Ballooning debt and rising bond yields in advanced economies are putting developing and low-income countries’ progress on debt reduction at risk, International Monetary Fund Managing Director Kristalina Georgieva told Reuters. She cited higher overall debt, inflation pressures linked to the still-closed Strait of Hormuz and competition for capital from AI-related debt issuance. The 30-year U.S. Treasury yield has approached two-decade highs after a recent selloff in government bonds. Although the IMF estimated in 2022 that 60% of low-income countries were in debt distress or at high risk, Georgieva said fiscal reforms supported by international institutions and official creditors had improved conditions. The IMF also announced a staff-level agreement with Senegal for a $2.2 billion, three-year loan package conditional on the country seeking treatment under the G20 Common Framework (a process for restructuring sovereign debt). Georgieva said a swift Senegal workout could encourage other countries to seek similar relief.