The World Bank’s International Debt Report 2026 highlights a strong recovery in international bond markets, although borrowing costs remain elevated and vary significantly across developing economies.
Highlights
- Public-sector bond issuance rose nearly 35% to $251bn in 2025, reaching its highest level since 2021.
- Developing countries paid $436bn more in external debt service than they received in new financing over 2022–2025. However, net long-term debt transfers turned positive at $45.4bn in 2025.
- Borrowing costs varied sharply: The most vulnerable developing countries paid an average of 9.4% on new bonds, compared with 5.5% for more creditworthy borrowers.
Despite improving market access, high borrowing costs and debt servicing obligations continue to raise questions about the sustainability of the recovery.
Sources: World Bank International Debt Report 2026, Econoday Sovereign Debt Calendar
