🔶 Foreign debt of developing countries broke the record.
In its latest report, the World Bank announced that the external debt of low- and middle-income countries in 2025 will reach 9,400 billion dollars with an increase of 5.5% compared to the previous year. This figure is the highest recorded level of foreign debt of these countries and its fastest annual growth since 2021.
According to the World Bank's annual international debt report released on Thursday (5 November), although private investors have once again turned to financing developing countries, rising interest rates will make lending to poor governments more expensive than in the past.
The cost of obtaining new loans from private lenders to the world's poorest countries reached 2.8% on average, which is the highest rate since 1989. These countries pay an average of 4.9% interest on issuing new bonds.