Making Debt Data Transparent and Sustainable Amidst Debt Distress
The Making Debt Data Transparent and Sustainable Amidst Debt Distress workshop was organized by the World Bank Development Data Group, the World Bank Group Data Academy with support from the Institute for Economic Development, and the Government of Japan, on June 10, 2024, in Perugia, Italy.
Developing countries spent a record $443.5 billion to service their external public and publicly guaranteed debt in 2022 amid the biggest surge in global interest rates in four decades. Record debt levels and soaring interest rates have set many developing countries on a path to crisis and today, about 60 percent of low-income countries are at high risk of debt distress or already in it. How can countries avoid having to choose between servicing their debt and investing in the health, education, and well-being of their citizens? How can they reduce debt, increase transparency, and facilitate swifter restructuring?
The workshop explored these questions and provided participants an in-depth understanding of debt statistics from the World Bank Debtor Reporting System (DRS) and the methodologies for compiling external debt statistics. Participants examined gaps and discrepancies that undermine confidence in debt statistics, impact debt sustainability, and complicate debt restructuring. They delved into the debt challenges faced by countries, focusing on debt distress and the Multipronged Approach (MPA) to support countries in distress and address their debt vulnerabilities.
The program thoroughly examined policies that enhance debt transparency and data quality; introduced debt sustainability frameworks, emphasizing the country data reported through the DRS; and concluded with a discussion on debt transparency and the World Bank Sustainable Development Finance Policy (SDFP), guiding trainees toward sustainable financing with a focus on fiscal sustainability and debt management challenges.
This is one of the series of the debt workshops designed to provide comprehensive insights into debt statistics. Stay tuned for upcoming opportunities to join!
