World Bank Urges More Clarity in Debt Practices

(MENAFN) In a publication released Friday, the World Bank highlighted that a growing number of emerging markets are resorting to off-the-record and increasingly intricate borrowing strategies.

This trend, the report stated, hampers the ability to accurately evaluate the threats posed by government debt.

The document, titled “Radical Debt Transparency,” called for essential reforms in how both borrowers and lenders declare and make public their financial obligations.

Among the proposals were broadening what is reported and including more specific loan-by-loan breakdowns.

The report pointed out that while the percentage of debt statistics published by low-income nations has improved — climbing from less than 60 percent in 2020 to over 75 percent — only one-quarter provide detailed data on each individual new borrowing.

Additionally, the World Bank observed that the rising adoption of complicated and often opaque financial tools — including special funds, monetary authority swaps, and secured lending arrangements — adds further difficulty to debt transparency efforts.

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