Developing countries' record $1.4 trillion debt service bill squeezes budgets

Developing countries spent $1.4 trillion servicing foreign debts in 2023, with interest costs reaching a 20-year high. The squeeze strained budgets for healthcare, education, and the environment. Total foreign debt interest payments rose significantly, particularly for the poorest nations. Multilateral institutions have provided crucial support, adding $51 billion more than they received in debt service payments.