The report says countries eligible to borrow from IDA may face a tough ride in the coming years: interest payments on their total external debt stock have quadrupled since 2012, the highest level ever. has reached US$23.6 billion.
As interest rates rose in advanced economies, private lenders chased the money in 2022: They largely withdrew from developing countries, withdrawing US$185 billion more in principal payments than they disbursed in loans. The World Bank, along with other multilateral development banks, stepped in to help close the gap.
The report cited that multilateral lenders provided a record US$115 billion in new financing for developing countries in 2022, about half of which came from the World Bank.