Developing Nations Seek New Funding Amid High Debt

High debt levels and falling aid are forcing developing nations to seek private funding. Officials at the IMF and World Bank meetings discussed new approaches to growing financial strains.

World Bank Group President Ajay Banga attends the Annual Meetings Plenary for the IMF/World Bank 2026 Annual Meetings at Queen Sirikit National Convention Center (QSNCC) in Bangkok, Thailand, October 16, 2026. REUTERS/Patipat Janthong

Developing countries face $12.3 trillion in external debt alongside a 23% drop in official development assistance during 2025. This funding crunch threatens growth across emerging markets as borrowing costs climb. Investors are tracking how multilateral institutions and private lenders bridge the widening financing gap.

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