Overview
- The World Bank’s International Debt Report published on Thursday, Nov. 5, 2026 found external debt for low- and middle-income countries rose 5.5% in 2025 to a record $9.4 trillion.
- Private lending and public bond issuance jumped nearly 35% to $251 billion in 2025, with the poorest borrowers paying an average 8.2% on new private commitments and 9.4% on new bonds.
- Developing countries paid $1.4 trillion in principal and interest in 2025, the fifth straight annual increase, driven by a 13.7% rise in payments to private creditors.
- Many governments refinanced maturing debt by issuing new bonds that extended repayment schedules but often carried higher interest rates, so borrowing levels did not fall materially.
- The bank warned that currency moves helped drive up dollar‑value debt, that higher debt service could force cuts to health, education and infrastructure spending, and that better debt management and transparency are urgently needed.