Developing nations' debt hits record $9.4 tn in 2025

The external debt of developing countries reached a record $9.4 trillion in 2025, according to the World Bank's annual International Debt Report. The majority of this increase was driven by private financing, with borrowing from private creditors and bond issuance by public enterprises rising nearly 35 percent. While access to international finance has improved, the cost of finance has not, and the high debt burdens in the poorest countries threaten to crowd out essential investments in people, the Bank warned.

The report highlighted how many governments have issued new bonds to buy back maturing debt, often at higher interest rates, effectively postponing debt repayments.

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