According to Punch, the World Bank is warning that developing economies face a persistent debt squeeze even as global financial conditions show pockets of relief.
The report highlights rising debt-servicing burdens, a shift toward costlier financing, and pressure on domestic credit markets as governments borrow more at home.
Reuters reported that the World Bank sees a $741 billion gap between debt-service outflows and new financing, adding that countries “are not out of danger.” In its own press release, the World Bank said developing countries “paid out $741 billion more” than they received in new financing between 2022 and 2024.
Nigeria and peers will be watching what ‘breathing room’ really means: cheaper refinancing, longer maturities, and whether fiscal reforms can prevent the next rollover crunch.
Echotitbits take: Nigeria and peers will be watching what ‘breathing room’ really means: cheaper refinancing, longer maturities, and whether fiscal reforms can prevent the next rollover crunch.
Source: The Punch — January 3, 2026 (https://punchng.com/debt-wbank-urges-nigeria-others-to-rethink-exports/)
The Punch January 3, 2026
Photo Credit: The Punch
