NEW YORK, 02 April. - (ANA) - The total debt servicing costs (principal plus interest payments) for all LMICs reached a record of $1.4 trillion in 2023. The increase in total debt service payments is a direct outcome of the rapid accumulation of external debt over the past decade, interest rates that hit a two-decade high and depreciation of local currencies against a strong United States dollar. This significantly exceeds pre-pandemic levels. In 2023, LMICs spent 3.7 per cent of their gross national income (GNI) to service their debt, straining already limited resources and leaving less room for investments in health, education, and infrastructure.

 

Principal repayments rose nearly 1 per cent to $950.9 billion, while interest payments surged 37.1 per cent to $405.3 billion ? both at all-time highs. Consequently, the debt-service-to-exports ratio deteriorated by 1.6 percentage points to 14.7 per cent for LMICs in 2023. The ratio of debt service on public and publicly guaranteed debt to export earnings increased to 4.4 per cent in 2023, after a two-year decline to 4.3 per cent in 2022.   - (ANA) -

 

AB/ANA/02 April 2026 - - -