Beautiful Virgin Islands

Thursday, Jun 05, 2025

Developing nations at risk of debt crises as external borrowing to top $62bn: World Bank

Developing nations at risk of debt crises as external borrowing to top $62bn: World Bank

Developing economies face rising debt-related risks as their debt-service payments are projected to top $62 billion in 2022, showed a recent World Bank report.   
This comes as the total external debt for low- and middle-income countries hit $9.2 trillion by the end of 2021, according to the World Bank’s International Debt Report.

The figure represents more than 100 percent of its value compared to a decade earlier.

The global financial body’s report noted that the poorest countries which are eligible to borrow from the World Bank’s International Development Association now spend over a 10th of their export revenues to service their long-term public and publicly guaranteed external debt.

Additionally, the total external debt of countries eligible to borrow from the IDA surged by an estimated 200 percent over the decade to reach $1 trillion.   

The World Bank warned that rising interest rates and slowing global growth risk tipping a large number of countries into debt crises. “About 60 percent of the poorest countries are already at high risk of debt distress or already in distress,” it added.

World Bank President David Malpass said the report showed a dramatic increase in the debt vulnerabilities facing low- and middle-income countries and called for urgent steps to help countries reach more sustainable debt levels.    

“We need a comprehensive approach to the debt problem, including debt reduction, swifter restructuring and improved transparency,” Malpass said in a statement in the International Debt Statistics 2022 report.   

“Sustainable debt levels are vital for economic recovery and poverty reduction,” he said.

The IDA countries’ total debt-service payments for long-term public debt service and government-guaranteed foreign debts amounted to about $46.2 billion by the end of 2021.

This figure is equivalent to 10.3 percent of their exports of goods and services and around 1.8 percent of their gross national income, compared to 3.2 percent and 0.7 percent, respectively, in 2010.

The report noted that the IDA countries’ debt service payments on their public and external debts guaranteed by the government are anticipated to climb 35 percent in 2022 to exceed $62 billion, representing one of the highest annual increases recorded over the past 20 years.

Last year, in October, the World Bank released a report indicating that the debt burden of the world’s low-income countries rose 12 percent to a record $860 billion in 2020 as countries responded to the COVID-19 crisis with massive fiscal, monetary and financial stimulus packages.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Global News Roundup: From Ukraine's strategic military strikes and Russia's demands and Tensions Escalate in Ukraine, to serious legal issues faced by Britons in Bali and Trump's media criticism, the latest developments highlight a turbulent landscape
Majority of French Voters View Macron's Presidency as a Failure
Hungary Partners with China to Boost Electric Vehicle Production
‘Vibe Coding’ Emerges as the New DIY Trend
AI Pioneer Yoshua Bengio Warns Models Can Deceive Users
Big Four Firms Rush to Create AI Auditing Systems
Musk’s xAI Pursues $113 Billion Valuation in New Share Sale
Walmart Increases Revenue Despite Shrinking Workforce
Hims & Hers Plans UK and EU Launch of Replica Obesity Drugs
Toyota to Acquire Supplier in $33 Billion Buyout
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
China Accuses US of Violating Trade Truce
Panama Port Owner Balances US-China Pressures
France Implements Nationwide Outdoor Smoking Ban to Protect Children
German Chancellor Merz Keeps Putin Guessing on Missile Strategy
Mandelson Criticizes UK's 'Fetish' for Abandoning EU Regulations
British Fishing Boat Owner Fined €30,000 by French Authorities
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
×