UBS CEO Warns Policymakers Not to Ignore Risk of High Debt Level

Policymakers trying to predict the next financial crisis should spend more time thinking about high levels of government debt than obscure market risks, Sergio Ermotti, Chief Executive Officer of UBS Group AG, told an audience at the World Economic Forum on Wednesday.

“Maybe we shouldn’t be too innovative in thinking about something completely new and be a bit more careful about the level of debt in the systems today,” Ermotti said on a panel hosted by Bloomberg’s Francine Lacqua. In a scenario of high inflation and rising rates, “the cost of that debt will become quite prohibitive and that may create a quite traditional crisis,” he added.