CNBC reports that with global debt set to exceed $257 trillion in the first quarter of 2020, the head of the Institute of International Finance (IIF) has warned that "white elephants" in emerging markets could pose a problem.

Total worldwide debt hit $253 trillion by the end of September 2019, with record-low interest rates making it easier for corporates, governments and individuals to borrow.

Global debt compared against total output surpassed 322% in the third quarter of 2019 and will continue to grow, according to the latest IIF report.

"We see a huge run-up in debt and leverage in this cycle, whether it's emerging markets or mature markets, whether it's corporates, sovereigns or households, and yet interest rates don't move, so maybe markets are telling us that we still have more capacity … but I worry about it nonetheless," IIF President told CNBC.

In particular, Adams highlighted that $8 trillion in outstanding foreign-denominated debt from the emerging markets, of which $2 trillion will need to be rolled over this year.