However, Emerging Market economies borrowing more heavily, global debt has set a new record high of USD217 trillion (over 327% of GDP) in early 2017.

The IIF report highlighted "rollover" risks, especially in emerging markets that have borrowed in hard currencies such as euros and dollars.

Such debts will become costlier to service if Western interest rates rise and currencies strengthen.

While U.S. interest rates have already been raised four times, the euro has surged to one-year highs after Draghi's comments on Tuesday, while German 10-year government bond yields – the benchmark for euro area borrowing – have doubled over the past two days.