The World Bank in its latest International Debt Report, has revealed that developing nations spent an unprecedented $1.4 trillion on foreign debt servicing in 2023, driven by a surge in interest rates to their highest levels in 20 years,
Interest payments alone reached $406 billion, a nearly 30% increase from the previous year, severely impacting spending in critical sectors such as health, education, and environmental programs.
According to the report, the most vulnerable economies, those eligible for loans from the World Bank’s International Development Association (IDA), bore the brunt of the financial strain.
These countries paid a record $96.2 billion to service their debts in 2023.
