Debt crisis hits new highs in developing nations, relief deal needed, says UN

25/2/2025 19:49

The debt crisis facing the world's poorest economies is reaching new highs and debt servicing is eating up a growing share of revenues at the expense of spending on development, the United Nations Development Programme warned on Tuesday.



A new multilateral debt relief deal that includes all creditors "warrants serious attention", UNDP said in a policy paper.



Interest payments on debt exceeded 10% of government revenue in 56 developing nations - almost twice the number of countries compared to a decade ago, according to the UNDP report published as G20 finance ministers and central bank governors kick off their meeting in South Africa.



Of those, 17 countries spent more than 20% of revenue on interest payments - surpassing a threshold strongly linked to default risk, UNDP said. Rising debt ervice burdens had surpassed levels not seen in more than two decades, it said.