WASHINGTON, November 10, 2021¡ªGlobal debt surveillance today depends on a patchwork of databases with different standards and definitions, resulting in large gaps in debt information for many low-income developing countries, a new World Bank Group analysis found.
provides a detailed look at debt reporting in low-income developing countries (LIDCs)¡ªmany of which are facing record-high debt levels exacerbated by COVID-19¡ªto inform stakeholders in sound and transparent debt management.
When debt data is available, the report notes that it tends to be limited to central government loans and securities, excluding other public sector components and debt instruments. For some LIDCs, debt data disclosed across various sources show variations equivalent to as much as 30 percent of a country¡¯s gross domestic product¡ªoften because of differing definitions and standards and recording errors. These challenges leave LIDCs open to the dangers of inadequate debt transparency¡ªsuch as the risk of debt distress and delayed debt restructurings¡ªand threatens the ability of countries to overcome the pandemic and generate a green, resilient and inclusive recovery. Additionally, without clarity of the extent of their indebtedness, governments would be unable to make sound decisions about borrowing.
