In response to an urgent need for greater debt transparency, the latest edition of the International Debt Statistics (IDS) report provides more detailed and more disaggregated data on external debt than ever before in its nearly 70-year history.
The disaggregated data includes breakdowns of what each borrowing country owes to official and private creditors in each creditor country, and the expected month-by-month debt-service payments owed to them through 2021.
Before the onset of the COVID-19 pandemic, rising public debt levels were already a cause for concern, particularly in many of the world’s poorest countries as discussed in the World Bank’s Four Waves of Debt report published in December 2019.
Responding to a call from the World Bank and the International Monetary Fund, the G20 endorsed the Debt Service Suspension Initiative (DSSI) in April 2020 to help up to 73 of the poorest countries to manage the impact of the COVID-19 pandemic.
According to the 2021 IDS report the total external debt of DSSI-eligible countries climbed 9.5 per cent to a record $744 billion in 2019 from the previous year.
This highlights an urgent need for creditors and borrowers alike to collaborate to stave off the growing risk of sovereign-debt crises triggered by the COVID-19 pandemic.
The pace of debt accumulation for these countries was nearly twice the rate of other low- and middle-income countries in 2019.
