For two decades, governments around the world took advantage of a favorable period to take on debt. Investors offered a discount that made borrowing cheaper, allowing governments to incur debt under advantageous conditions.
This cycle of easy borrowing has come to an end. The economic landscape has changed and the conditions that enabled this cheap access to credit no longer exist.
With this period ending, paying debt interest will begin to weigh significantly on government budgets. Governments will now face the challenge of managing more expensive and sustainable debt.
