WASHINGTON: Nearly half of the countries eligible for concessional financing from the International Monetary Fund (IMF) are either in debt distress or at high risk of it, while their interest payments have quadrupled since 2013, Transparency International (TI) says.

In a report released ahead of the IMF and World Bank Annual Meetings in Bangkok from Oct 12 to 18, the anti-corruption organisation warns that secrecy and corruption in sovereign borrowing can also leave future generations paying for loans that benefit the powerful.

The report urges governments and international lenders to make public borrowing more transparent, strengthen safeguards against corruption and give borrowing countries a greater say in decisions that shape their debt obligations.

The report highlights the growing pressure on public finances in low- and middle-income countries. According to the report, at least 8 per cent of government revenue across these economies goes toward servicing debt. In Africa, 57pc of the population lives in countries that spend more on interest payments than on health, education and climate action.

TI highlights interest payments have quadrupled since 2013

The figures underline the difficult choices governments face as they struggle to finance essential public services while meeting obligations to creditors.

But TI argues that the problem is not simply how much countries borrow. The terms under which loans are negotiated, the disclosure of financial agreements, and how borrowed money is used also determine who benefits and who ultimately bears the cost.

“Without robust safeguards and effective controls over how loans are negotiated and managed, sovereign loans are misused and embezzled, enriching public officials and their cronies at the expense of future generations,” the report says.

Opaque agreements and weak oversight can make it hard for citizens, parliaments, and independent watchdogs to determine who approved a loan, how much a country owes, and whether borrowed funds were used for their stated purposes.

A critical moment in Bangkok

TI argues that the Bangkok meetings offer an opportunity to turn concerns about debt transparency and corruption into concrete policy commitments.

The annual gatherings bring together finance ministers, central bank governors and leaders of international financial institutions, alongside business representatives and civil society organisations. The G20 finance ministers and central bank governors will also meet on Oct 15, providing governments with an opportunity to establish political priorities on debt transparency and accountability.

Transparency International identifies several steps it wants these institutions to take.

First, governments should end secrecy surrounding sovereign borrowing. It calls on G20 countries to require bilateral creditors and private lenders operating within their jurisdictions to disclose complete, transaction-level financial and non-financial information about public debt.

The G20, working with the IMF and World Bank, should also develop common standards to limit confidentiality clauses in sovereign lending agreements. Such agreements, the report argues, should be consistent with borrowers’ access-to-information rules, including requirements for proactive disclosure and the legal consequences of withholding information.

Published in Dawn, October 11th, 2026