World Bank: Private debt pose hidden risk to developing countries

The World Bank underscored its longstanding concerns about lack of transparency about Chinese lending and collateralised loans in the sovereign debt sector, but also called out growing private sector risks in its latest World Development Report.

WASHINGTON: Developing countries must quickly strengthen their financial sectors, according to the World Bank, warning that rising inflation, interest rates and alarming levels of debt distress could trigger a global chain reaction not seen in generations.

The World Bank underscored its longstanding concerns about lack of transparency about Chinese lending and collateralised loans in the sovereign debt sector, but also called out growing private sector risks in its latest World Development Report.