Debt of poorest countries at record $9.4tn high, World Bank data shows

Developing countries’ debt reached a record $9.4tn last year, while rising repayment costs are limiting some governments’ ability to invest in long-term development. The World Bank says borrowing increased rapidly, particularly from private lenders, and the UK plans to make debt reform a priority during its G20 presidency next year.

The debt stock rose 5.5%, the fastest increase in four years. The poorest countries faced an average 8.2% interest rate on new borrowing, the highest since the late 1980s; Laos, the Republic of Congo and Kenya recently borrowed at rates of 11.5%, 13.88% and 9.2% respectively. UK proposals may include using multilateral development banks to buy back debt and extend repayment periods, though private bondholders make reform more complex than past debt-relief efforts.