The multilateral debt problem

Since the collapse of private lending in 1982, multilateral debt has grown rapidly, both in absolute terms and as a percentage of total debt. From 1982 to 1992 multilateral debt owed by all developing countries more than trebled, from $98 billion to $304 billion, reaching 18 per cent of total debt. Severely indebted low-income countries (SILICs) owe almost 25 per cent of their debt to I Fis, compared to 14 per cent for severely indebted middle-income countries (SIMICs). However, for the former, 58 per cent of multilateral debt is concessional (partly because I Fis have provided large amounts of concessional loans to refinance SI LIC non-concessional debt service informally), whereas for the latter, the proportion is only 5 per cent.

Sustainable Development Goals:

Decent Work and Economic Growth

Partnerships for the Goals