External debt owed by developing countries reached a record $9.4tn last year, World Bank data show. Servicing costs are crowding out investment, The Guardian reports, with the sharpest rise among countries eligible for concessional IDA financing, according to TASS.
Many low- and middle-income countries borrow abroad from governments, multilateral lenders and private creditors to finance development. When debt-service payments grow, they leave less money for health, education and infrastructure. The World Bank tracks these external debt levels, and its concessional IDA arm supports the poorest countries.
External debt owed by developing countries rose to a record $9.4tn last year, according to World Bank data. The cost of servicing it is preventing these countries from investing, The Guardian reports, with the sharpest increase among nations eligible for concessional IDA financing, according to TASS.