BIS chief warns UK about worsening national debt

The United Kingdom is among the countries at risk of an economic crisis due to unbalanced government spending. Investor interest in the European country's debt securities is waning, leaving the authorities in a difficult position. Agustin Carstens, the Bank for International Settlements (BIS) chief, highlighted the problem of the UK's rapidly rising public debt.

Carstens stressed that highly indebted countries can no longer keep borrowing vast sums to help plug funding gaps, as this approach exacerbates rather than solves the problem.

The BIS chief's warning comes just a few days after Britain's prime minister decided to abandon plans to save 5 billion pounds ($6.9 billion) on welfare.

While Carstens noted that the trend of surging public debt has affected multiple countries for years, he acknowledged there is no immediate cause to fear an economic crisis in the UK or elsewhere. However, he cautioned that the long-term outlook remains concerning.