The International Monetary Fund (IMF) has issued a warning that it is no longer financially sustainable for governments to support households and businesses dealing with the energy crisis by increasing their budget deficits. The IMF's Managing Director, Kristalina Georgieva, explained that many governments have historically responded to major crises—such as the global pandemic, the war in Ukraine, inflation, and rising interest rates—by borrowing more money and expanding their deficits. However, she emphasized that this strategy is becoming increasingly unaffordable, especially as interest rates and the cost of borrowing have risen sharply in recent times. Georgieva urged governments to adopt a more focused approach to financial aid, suggesting that support should be directed specifically at those most affected by the sharp increase in energy prices. This targeted assistance, she argued, would help ease the burden on vulnerable groups without further straining national finances. The IMF has long advocated for fiscal responsibility, and this warning comes at a time when many countries are already grappling with economic uncertainty and high debt levels. The IMF’s concerns are part of a broader discussion about how to manage the economic fallout from the energy crisis, which has led to higher costs for heating, transportation, and manufacturing. As governments seek to balance the need for immediate relief with long-term financial stability, the IMF’s guidance is expected to influence policy decisions across the globe. More details on this issue will be available soon on BFM Business, and viewers can follow the live stream on X.