The World Bank has called for a sweeping transformation in how countries report and manage national debt, citing growing complexity in global financing and a persistent lack of transparency. In its newly released “Radical Debt Transparency” report, the Bank warns that rising use of private placements, central bank swaps, and collateralised transactions has made traditional debt reporting systems inadequate and opaque.
Despite an improvement in general reporting practices—with over 75% of low-income countries now publishing debt data, up from under 60% in 2020—only a quarter are providing detailed, loan-level information on newly contracted debt. The report also notes that domestic debt issuance has grown significantly, yet accurate disclosures remain rare. Compounding the problem are confidential debt restructuring deals between some countries and individual creditors, which obscure vital financial data and undermine market trust.
Axel van Trotsenburg, senior managing director at the World Bank, emphasized the dangers: “Recent cases of unreported debt have highlighted the vicious cycle that a lack of transparency can set off. When hidden debt surfaces, financing dries up and terms worsen. Countries turn to opaque, collateralized deals. Radical debt transparency is fundamental to break the cycle.”
The World Bank is urging both debtor and creditor nations to reform reporting frameworks by mandating full loan contract disclosures, publishing lending terms, and conducting more frequent audits. It also calls for better national oversight and creditor participation in reconciliation processes.
To support these goals, the World Bank is expanding its global Debtor Reporting System to ensure more consistent and reliable debt data collection.
Pablo Saavedra, World Bank VP for prosperity, added: “Debt transparency is not just a technical issue—it’s a strategic public policy. Radical debt transparency builds trust, reduces borrowing costs, and unlocks investment, supporting debt sustainability and driving job creation.”