7.3
trillionexternal debt of low & middle-income countries in 2018
Achieving the Sustainable Development Goals requires significant investments—in infrastructure, human capital, and climate change resilience. But many IDA countries are often limited in their ability to mobilize domestic revenues. Debt financing is critical for development, but unsustainable levels harm growth and the poor. It can be a useful tool if it is transparent, well-managed, and used in the context of credible growth policy.
IDA at Work
Public debt in developing countries has been increasing. The share of the IDA countries at high risk of external debt distress has doubled. IDA has supported several critical debt-transparency reforms through advisory services or operational engagement.
Since 2008, the Debt Management Facility has supported debt-management capacity building and reforms in over 80 countries. Since its inception, the DMF has implemented more than 290 technical assistance missions in more than 75 countries and 15 subnational entities.
Debt Interactive
Somalia Reestabilishes Financial Relations After Thirty Years
Reestablishment with the World Bank Group will open up opportunities for Somalia to access financing from IDA and to attract investment that will support the country’s stability and development.
