← Back to briefingZenaHub.
Englishአማርኛ
Economy

Developing Countries Spend Record Share of Revenue on Debt Interest

BirrMetrics · 4 hours ago · Read the Full Story on BirrMetrics
Developing Countries Spend Record Share of Revenue on Debt Interest
AI SUMMARY

Developing countries are spending a median of 9.5 percent of government revenue on debt interest payments, the highest in 25 years, amid rising borrowing costs and compounding global crises.

  • Developing countries are spending a median of 9.5 percent of total government revenue on sovereign debt interest payments, marking a 25-year high.
  • The median interest burden in developing economies is more than three times the corresponding burden in high-income economies.
  • Reported interest burdens exclude principal repayments, meaning total obligations are higher.
  • Yields on 10-year United States Treasury bonds reached 5.3 percent, their highest level since 2002.
  • Ten-year borrowing costs for weaker-credit developing sovereign issuers have climbed to an average of approximately 9 percent.
  • Global crude oil prices are trading above 100 US dollars a barrel.
  • Global fossil fuel subsidies could exceed one trillion US dollars in 2026.
  • Government interventions prevented approximately 130 million additional people from falling into poverty this year.
  • Sub-Saharan Africa, South Asia, and East Asia are particularly exposed to borrowing costs, commodity price volatility, and reduced fiscal capacity.
  • Ethiopia is implementing economic reforms under a 3.4 billion US dollars IMF programme approved in July 2024 and negotiating external debt restructuring.
  • Ethiopia announced an agreement in principle in June 2026 with a committee representing 45 percent of its Eurobond holdings, proposing an 880 million US dollars replacement bond.
  • The UNDP warns that the current El Niño event could become the strongest on record, threatening agricultural production and food security.
  • The UNDP recommends that developing governments gradually replace broad, untargeted subsidies with temporary assistance directed at vulnerable households.
Read the Full Story on BirrMetrics
Related
Ethiopia's Economic Reform Lacks Lived Reality
BirrMetrics · 4 hours ago
Dearer Oil, Cheaper Coffee Threaten Ethiopia’s Recovery
BirrMetrics · 4 hours ago
NBE Increases Quarterly Foreign Exchange Allocation to $840 Million
BirrMetrics · 4 hours ago
World Bank Discusses 100 Billion Crisis Response with Developing Nations
BirrMetrics · 4 hours ago