World Bank Calls for Debt Relief as Funds Flee Poor Countries
- ‘It’s time to face reality,’ chief economist says in report
- Poorest nations paid record $34.6 billion interest last year
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The World Bank’s top economist called on private lenders to shoulder some of the cost of debt forgiveness for the poorest countries, as record high repayments drain budgets that should be focused on health, education and infrastructure.
Interest payments alone by the lowest-income nations ballooned to a record $34.6 billion in 2023, quadrupling over the past decade, the bank said in its latest International Debt Report. Including principal, those 78 nations are paying $96.2 billion annually to service $1.1 trillion in debt.