G24 Urges IMF and World Bank to Lower Debt Costs

Taiwo Oyedele, chair of the Group of 24 and Nigeria's minister of finance, warned that mounting debt burdens and high borrowing costs create a major barrier to inclusive growth in developing nations. Speaking at the International Monetary Fund and World Bank annual meetings in Bangkok, Oyedele stated that developing countries pay approximately $500 billion more for their debt than developed nations.

He attributed these financial pressures to surging borrowing costs, food price increases caused by a super El Niño, and supply shocks stemming from the war in the Middle East. The G24 urged the IMF and World Bank to provide more affordable and accessible concessional financing to vulnerable countries.

G24 secretariat director Iyabo Masha added that debt restrains growth by diverting resources away from financing and toward repayment. Masha also expressed concern that the rapid adoption of artificial intelligence could widen the digital divide, as underdeveloped nations lack the electricity and data centers required to benefit from the technology.