World Bank pushing for debt transparency in developing countries to prevent future crises

From Yahoo Finance: 2025-06-19 22:04:00

The World Bank is urging “radical” debt transparency for developing countries and their lenders to prevent future crises. They want countries to disclose more details about new loans to avoid hidden debt causing financing issues. The Bank is also calling for legal reforms, audits, and creditor transparency to improve lending practices.

Low-income countries are improving debt reporting, but only 25% disclose loan-level information. With financing costs rising due to global turmoil, countries are using complex borrowing deals like central bank swaps. Countries like Senegal, Cameroon, and Angola have faced financial challenges due to opaque debt practices, highlighting the need for transparency.

Angola recently paid a $200 million margin call due to bond price volatility, while Nigeria disclosed billions of dollars tied up in complex financial contracts. The World Bank emphasizes the importance of broader loan coverage and detailed disclosures to assess public debt exposure accurately. Improved transparency can help prevent future debt crises.



Read more at Yahoo Finance: World Bank urges ‘radical’ debt transparency for developing countries