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Developing Countries' Debt Hits Record $9.4tn, World Bank Data Shows
Developing countries' debt rose to a record $9.4tn last year, with the poorest paying the highest rates.
Key points
- Developing country debt rose 5.5% last year, the fastest increase in four years, driven by private sector lending.
- The poorest countries faced an average interest rate of 8.2% on new borrowing, the highest since the late 1980s.
- Recent borrowing by Laos, the Republic of Congo and Kenya carried interest rates of 11.5%, 13.88% and 9.2%.
Why it matters. The report says rising costs of servicing external debt are preventing some governments from investing for the future, and that global shocks hit food availability more in heavily indebted countries.
Developing countries' debt rose to a record $9.4tn (£7tn) last year, with the poorest paying the highest interest rates since the late 1980s, according to the World Bank's annual International Debt Report. The 5.5% increase was the fastest in four years, driven by a rapid rise in private sector lending, and the poorest countries faced an average rate of 8.2% on new borrowing. Chief statistician Haishan Fu said access to finance had improved, but its price had not.
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Developing Countries' Debt Hits Record $9.4tn, World Bank Data Shows
Debt owed by developing countries rose to a record $9.4tn (£7tn) last year, according to the World Bank's annual International Debt Report. The poorest countries are paying the highest interest rates since the late 1980s. The bank said the rising cost of servicing external debt is preventing some countries from investing in other priorities. The UK government is preparing to champion a new drive on debt during its G20 presidency next year, the Guardian reported.