The five countries that recorded the highest external debt interest payments relative to export revenues in 2024 were Mozambique, Senegal, Mongolia, Egypt, and Colombia; the five countries with the highest interest payments relative to Gross National Income (GNI) were Mozambique, Mongolia, Angola, Senegal, and Lebanon, according to the World Bank’s report on global public debt.
In response to questions, the World Bank detailed that already in 2023, the situation was negative for these two Portuguese-speaking African countries.
During 2023 and 2024, Mozambique held the highest ratio of interest payments relative to exports and also the highest ratio between interest payments and GNI.
In 2024, Angola had the 10th highest interest-to-export ratio and the fourth highest ratio regarding interest to GNI.
The previous year, Angola was ranked 10th among countries with the highest interest payment-to-export ratio and was the third worst globally in the ratio between the interest amount and GNI.
The World Bank’s International Debt Report, released in Washington, warns that “developing countries paid 741 billion dollars [637.5 billion euros] more in debt and external debt interest than they received in new financing between 2022 and 2024,” representing “the largest gap in at least 50 years.”
World Bank experts present a cautious outlook on the evolution of international financial market conditions, which has led many countries to issue new debt this year, as happened in Angola, despite interest rates hovering around 10%, roughly double the average charged to emerging countries before the pandemic.
“Global financial conditions may be improving, but developing countries should not be lulled: they are not out of danger,” says World Bank Group Chief Economist and Senior Vice President for Development Economics, Indermit Gill, quoted in the report. He warns that as “debt accumulation continues (…) policymakers worldwide must make the most of the available room for maneuver rather than rushing back into external debt markets.”
For many countries, accessing the international market is a viable option due to the decline in interest rates charged by investors and ensuring there are no currency surprises. It is also a solution to guarantee the restructuring of current debt.
“Many countries avoided the risk of bankruptcy by restructuring their debts; in total, developing countries restructured 90 billion dollars [77 billion euros] in external debt in 2024, the largest volume since 2010,” the World Bank’s report further states.
Last year, the external debt of middle- and low-income countries reached a record 8.9 trillion dollars, about 7.6 trillion euros, with 1.2 trillion dollars (just over one trillion euros) owed by the 78 countries eligible for World Bank International Development Association (IDA) loans, with interest on debt issued in 2024 reaching the highest level in the last 24 years.
“In total, these countries disbursed a record 415 billion dollars [357 billion euros] just in interest, resources that could have been allocated to education, primary healthcare, and essential infrastructure,” the report’s authors emphasize, concluding that only multilateral development banks can guarantee cheap financing.
In the case of the World Bank, they conclude, 18.3 billion dollars [15.7 billion euros] were given out more than the amount received in payments and interest, in addition to the 7.5 billion dollars [6.4 billion euros] channeled to the poorest countries as donations.
