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World Bank: Developing countries' external debt hits record $9.4 trillion
The World Bank reported that external debt in developing countries reached a record $9.4 trillion in 2025, marking a 5.5 percent increase from the previous year. This represents the fastest growth rate since 2021 and is approximately four times the average growth seen between 2022 and 2024.
While access to international financial markets has improved, borrowing costs remain high. The poorest developing nations, specifically those eligible for concessional financing from the International Development Association (IDA), faced an average interest rate of 8.2 percent on new private-creditor commitments, the highest level since 1989. For new bonds, these rates reached an average of 9.4 percent.
Debt growth was most pronounced among IDA-eligible countries, where external debt rose 8.1 percent to $1.3 trillion. The report noted that public entity bond issuances increased by nearly 35 percent to $251 billion, the highest level in five years. Haishan Fu, the World Bank’s Director for Development Data, noted that while the return of private lending is welcome, these nations are borrowing more and paying more, which may reduce available funds for long-term development in education, health, and infrastructure.
Entities
Botswana · Haishan Fu · International Bank for Reconstruction and Development · International Debt Report · International Debt Report 2026 · International Development Association · International Monetary Fund · Kenya · World Bank · World Bank Group
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Borrowing costs for the poorest countries are at their highest in decades. www.volksfreund.de · www.noz.de · www.wz.de
- [● 3 SOURCES] Haishan Fu is the Director for Development Data at the World Bank. www.volksfreund.de · www.noz.de · www.wz.de
- [● 26 SOURCES] Developing nations' foreign debt reached a record 9.4 trillion dollars in 2025. www.volksfreund.de · www.noz.de · www.wz.de · en.prothomalo.com · lemarche.finance · +21 more
- [● 26 SOURCES] Foreign debt of developing nations grew by 5.5 percent in 2025 compared to the previous year. www.volksfreund.de · www.noz.de · www.wz.de · en.prothomalo.com · lemarche.finance · +21 more
- [● 26 SOURCES] Public sector bond issuances grew to 251 billion dollars, the highest level in five years. www.volksfreund.de · www.noz.de · www.wz.de · en.prothomalo.com · lemarche.finance · +21 more
- [● 22 SOURCES] The poorest developing countries paid an average of 8.2 percent on new private-creditor commitments. en.prothomalo.com · lemarche.finance · www.turkgun.com · www.moncloa.com · newscentraltv.com · +16 more
- [○ 1 SOURCE] The World Bank revised Kenya's 2026 economic growth forecast to 4.6 percent.
- [● 22 SOURCES] External debt of IDA-eligible countries rose by 8.1 percent to 1.3 trillion dollars in 2025. lemarche.finance · www.turkgun.com · www.moncloa.com · clubofmozambique.com · en.prothomalo.com · +16 more
- [● 2 SOURCES] The gap between public and private creditor interest rates increased from 3.4 points in 2016 to 5.5 points in 2025. lemarche.finance
- [● 13 SOURCES] The interest rate on new bonds for the poorest countries reached 9.4 percent. bosnainfo.ba · lemarche.finance · clubofmozambique.com · en.prothomalo.com · sondakikakibris.com · +7 more