Pakistan, Sept. 3 -- The closure of the Strait of Hormuz is raising borrowing costs and worsening debt pressures for developing nations. IMF chief Kristalina Georgieva warned that the disruption could threaten progress made on debt challenges. She said inflation pressures linked to the shutdown are adding to financial risks.

Georgieva said inflation linked to the continued closure is helping push bond yields higher. She also pointed to rising debt levels as another major factor behind increasing borrowing costs. These pressures could make debt management harder for countries already facing financial strain.

Speaking to Reuters during a G20 meeting in North Carolina, Georgieva stressed that the issue extends beyond poorer nations. She sa...