Growing debt burden poses significant risk to developing nations, G24 chair says
SPY•Developing nations pay roughly $500 billion more in debt costs than developed countries, G24 chair Taiwo Oyedele said. The G24 urged the IMF and World Bank to expand accessible, affordable concessional financing for vulnerable countries.
1. Debt costs and growth
Oyedele said mounting debt burdens and high borrowing costs were a major barrier to inclusive growth in developing economies. He said the additional debt costs for developing nations were roughly $500 billion compared with developed countries.
2. Call for financing
G24 members urged the IMF and World Bank to provide more accessible and affordable concessional financing to vulnerable countries in the near term. G24 director Iyabo Masha said debt limits resources available for growth, while recent improvements to sovereign debt processes should help countries resolve crises more quickly.
3. AI divide concern
Masha said developing economies risk being left behind in AI adoption, widening the digital divide. She said countries lacking development and electricity access may take time to benefit from AI or attract data center investment.
