Brief
G24 chair warns debt burden threatens growth in developing nations
At the IMF/World Bank meetings in Bangkok, the G24 highlighted rising debt costs and called for cheaper financing for vulnerable economies.
By Felo News Desk · Published
Speaking at the IMF and World Bank annual meetings in Bangkok on 13 October, Nigeria’s finance minister Taiwo Oyedele, who chairs the Group of 24 (G24), warned that developing economies are paying roughly $500 billion more for their debt than wealthier nations.
What happened
Oyedele told reporters that the debt burden has become a "major barrier" to inclusive growth, citing high fiscal deficits, supply shocks from the Middle‑East war, a "super El Niño"‑driven food‑price surge and rising borrowing costs. He said these factors are pushing emerging markets toward a "high‑cost" debt environment.
What the reports add
The article notes that the G24, a bloc of emerging and developing‑market nations, urged the IMF and World Bank to expand concessional financing to vulnerable countries while they mobilise private capital and curb public spending. Iyabo Masha, director of the G24 secretariat, added that recent reforms to the sovereign‑debt architecture should speed up debt‑crisis resolutions, citing Senegal’s progress toward an agreement with lenders and bondholders.
What was said
"What we have seen by members of the G24 and across particularly the developing countries such as those in Africa, is an increasing body of not just high debts, but high costs of debts," Oyedele said, as reported by Bizcommunity.
"Debt is something that restrains growth, because countries then do not have enough resources to finance further growth, or they are spending most of their resources just paying off the debt," Masha told the same outlet.
How it came about
The G24’s warning follows earlier UNDP alerts about a "triple shock" of high oil prices, El Niño impacts and rising borrowing costs for developing nations (see UNDP warning). It also aligns with broader concerns about global debt levels highlighted in recent Felo coverage of debt trends in the UAE and the United States.
Key facts
- Developing nations are paying about $500 billion more for debt than developed countries (bizcommunity.com)
- G24 chair Taiwo Oyedele made the remarks at the IMF/World Bank meetings in Bangkok on 13 October 2026 (bizcommunity.com)
- The G24 called for more concessional financing from the IMF and World Bank (bizcommunity.com)
Sources
- [1] bizcommunity.com — originally reported as “Growing debt burden poses significant risk to developing nations, G24 chair says”
