ISTANBUL 

Developing countries spent $1.4 trillion on their foreign debt in 2023 while their interest costs climbed to a 20-year high, the World Bank said on Tuesday.

"Interest payments surged by nearly a third to $406 billion, squeezing the budgets of many countries in critical areas such as health, education, and the environment," the bank said.

The coronavirus pandemic sharply enlarged the debt burdens of all developing countries, and the subsequent surge in global interest rates has made it harder for many to regain their footing, it said.

Last year, borrowing abroad became considerably more expensive for all developing economies, and interest rates on loans from official creditors doubled to more than 4%, it stressed.

The bank said: "The financial strain was fiercest for the poorest and most vulnerable countries – those eligible to borrow from the World Bank’s International Development Association (IDA).

"These countries paid a record $96.2 billion to service their debt in 2023,” it said.