World Bank Calls for Radical Debt Transparency in Developing Nations
The World Bank is advocating for significant debt transparency among developing countries to prevent future financial crises. By doing so, it aims to make detailed information on loans accessible, complete with legal and regulatory reforms. This call to action highlights the need for regular audits and public release of debt terms.

The World Bank has issued a call for "radical" debt transparency among developing nations, aiming to prevent future financial crises, as detailed in a report released Friday.
The Bank is pushing for more comprehensive and detailed disclosures regarding new loans by sovereign countries. In a statement, senior managing director Axel van Trotsenburg emphasized the importance of making reliable debt information readily accessible to break the cycle of hidden debt leading to harsher financing conditions.
To achieve this, the World Bank is advocating for legal and regulatory reforms mandating transparency when new loan contracts are signed, alongside sharing more specific debt data. This includes more frequent audits, public disclosure of debt restructuring terms, and greater loan and guarantee book openness by creditors.
Additionally, the Bank calls for improved tools for detecting misreporting by international financial institutions. An increase in countries using complex financial arrangements has prompted this push for transparency. Examples include Senegal's private debt placements and Nigeria's entangled foreign exchange reserves. The World Bank's goal is to allow the international community to comprehensively assess public debt exposure through broader loan coverage and deeper loan-by-loan disclosures.
(With inputs from agencies.)
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