Post by UN Trade and Development (UNCTAD)

Loans remain central to sovereign debt financing and are a key source of development funding. But borrowing conditions remain challenging despite recent improvements. For developing countries, interest rates on external loans averaged a record 4.9% in 2024. Even multilateral lending, traditionally a source of stable, affordable finance, has become significantly more expensive in recent years. In a new report, UN Trade and Development (UNCTAD) explores policy approaches to lower borrowing costs and improve access to external debt finance. Take a deeper look: https://ow.ly/avJ850ZeBcA