OMM Redaksiyası
About 3.7 billion people live in 51 developing countries where public debt interest payments exceed government spending on health or education, the UN Trade and Development agency (UNCTAD) warned on Wednesday.
Developing countries paid $995 billion in net interest on public debt in 2025, nearly three times the amount in 2010, according to UNCTAD’s report, “A World of Debt 2026: Rising debt costs and stalling development.”
The median share of government revenue spent on net interest rose to 8.1%, almost double its 2010 level. Global public debt reached $111 trillion in 2025, including $35 trillion owed by developing economies.
Developed countries accounted for more than two-thirds of global public debt, although debt has grown faster in developing countries.
UNCTAD said developing countries face structurally higher interest rates, compounded by recent conflicts and crises. External financing has also become scarcer as bilateral lenders shift development assistance towards domestic priorities and private creditors grow more cautious.
Borrowing at rates comparable to those paid by developed economies could save developing countries about $500 billion a year, the agency estimated. It called for stronger financial safety nets, a reversal of declines in development assistance, more lending by development banks and better national debt management.
The Borrowers’ Platform is due to hold its first Governing Council meeting in Bangkok on Oct. 12, on the sidelines of the IMF-World Bank Annual Meetings.
Launched in April, the initiative gives developing countries a forum to share experience and strengthen cooperation on debt challenges. UNCTAD serves as its secretariat.
Members are expected to formalize their participation and elect a chair for the 2026-2027 annual cycle.
