Interest payments on debt exceed health or education spending in 51 countries — Anadolu Agency
Turkey’s Anadolu Agency reported that in 51 developing countries, interest payments on public debt exceed government spending on healthcare or education. About 3.7 billion people live in these countries, the UN Conference on Trade and Development (UNCTAD) warned.
In 2025, developing countries paid $995 billion in net interest on public debt — nearly three times more than in 2010. The data were presented in UNCTAD’s report, A World of Debt 2026: Rising debt costs and stalling development.
Rising debt costs
The median share of government revenue that developing countries allocated to net interest payments reached 8.1%. This is nearly twice the 2010 figure.
Global public debt rose to $111 trillion in 2025, with $35 trillion attributable to developing economies. Advanced countries accounted for more than two-thirds of total debt, although debt was growing faster in developing countries.
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Call for more affordable financing
UNCTAD noted that developing countries face structurally higher interest rates, compounded by recent conflicts and crises. External financing has also become less accessible as bilateral creditors redirect aid to domestic priorities and private creditors act more cautiously.
According to the organization’s estimate, borrowing at rates comparable to those of advanced economies could save developing countries about $500 billion annually. UNCTAD called for strengthening financial support mechanisms, halting cuts to development aid, expanding lending by development banks, and improving public debt management.
On October 12, the first meeting of the Borrowers’ Platform steering committee is set to take place in Bangkok on the sidelines of the IMF and World Bank annual meetings. The initiative was launched in April to exchange experience and strengthen cooperation among developing countries on debt issues; participants are also expected to formalize their participation and elect a chair for the 2026–2027 cycle.
