Lower-Income Nations Face Highest Debt Costs Since 1989: World Bank

Poorer Nations Face Highest Debt Costs Since 1989, World Bank Says Emerging economies’ external debt climbed to a record $9.4 trillion in 2025, according to the World Bank, boosted in part by the poorest nations facing borrowing cost levels unseen since the 1980s. Lower-income countries paid an average of 8.2% when taking fresh private loans and 9.4% in new bond issuance last year, the bank said, referring to the countries that can get grants and concessional financing from the lender. For developing nations with stronger economies, the interest rate on new bonds averaged 5.5%.