The World Bank has revealed that Nigeria secured the highest amount of fresh loans in 2022, receiving approximately $2.9 billion.
Tanzania followed closely with $2.7 billion in the same year, as detailed in the International Debt Report for 2023.
The report emphasized the escalating risk of debt crises for the poorest nations, with developing countries spending a record $443.5 billion on debt servicing in 2022 due to a significant surge in global interest rates.
The World Bank warned that rising interest rates have left developing nations more susceptible to debt, resulting in more sovereign defaults in the past three years than in the preceding two decades.
Approximately 60% of low-income nations are currently in or at high risk of entering debt distress.
The report also highlighted the impact of a stronger US dollar on debt service payments, making it more challenging for countries to meet their financial obligations.
The World Bank stressed the urgent need for coordinated action to address the escalating debt levels, high-interest rates, and the potential consequences on public health, education, and infrastructure
