Debt of poorest countries at record $9.4tn high, World Bank data shows
Summary
Developing countries’ debt reached a record $9.4 trillion last year, up 5.5%, according to the World Bank. The poorest countries faced an average interest rate of 8.2% on new borrowing, the highest since the late 1980s, while the UK is preparing proposals on debt as it readies to lead the G20 next year.Key Facts
- Private-sector lending drove much of last year’s rise in developing-country debt.
- The World Bank said higher debt-servicing costs can limit governments’ ability to invest in long-term development.
- The report said preliminary 2026 data showed lending continued rapidly, with interest rates remaining high.
- Recent borrowing rates cited by the World Bank included 11.5% for Laos, 13.88% for the Republic of Congo, and 9.2% for Kenya.
- The World Bank linked heavy debt burdens during global shocks with reduced affordability of a healthy diet.
- UK Prime Minister Andy Burnham appointed former prime minister Gordon Brown to examine possible changes to the global debt system.
- UK Foreign Secretary Ed Miliband outlined a proposed debt deal that could use multilateral development bank resources to buy back debt and extend repayment periods.
- The article says debt relief is more complex than in 2005 because many creditors are now private bondholders rather than governments.
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