🔶 Foreign debt of developing countries breaks record

The World Bank, in its latest report, announced that in 2025 the external debt of low- and middle-income countries will reach $9.4 trillion, up 5.5% compared to the previous year. The figure is the highest level of recorded external debt for these countries and the fastest annual growth since 2021 to date.

According to the World Bank’s annual report on international debt, published Thursday (14 Aban), although private investors have once again turned to financing developing countries, higher interest rates have made borrowing for poor governments far more costly than in the past.

The cost of obtaining new loans from private lenders for the world’s poorest countries has, on average, risen to 8.2%, the highest level since 1989. These countries also pay, on average, an interest rate of 9.4% to issue new debt securities.