{"id":136134,"date":"2026-03-31T05:02:45","date_gmt":"2026-03-31T05:02:45","guid":{"rendered":"https:\/\/chezaspin.com\/blog\/developing-countries-are-being-priced-out-in-struggle-for-affordable-finance\/"},"modified":"2026-03-31T05:02:45","modified_gmt":"2026-03-31T05:02:45","slug":"developing-countries-are-being-priced-out-in-struggle-for-affordable-finance","status":"publish","type":"post","link":"https:\/\/chezaspin.com\/blog\/developing-countries-are-being-priced-out-in-struggle-for-affordable-finance\/","title":{"rendered":"Developing countries are being priced out, in struggle for affordable finance"},"content":{"rendered":"

Developing countries are being priced out of the\u00a0<\/span>affordable finance they desperately need for sustainable development<\/span><\/a>, with sovereign credit ratings often overstating risk and overlooking long-term economic potential, the UN said on Monday.<\/span><\/strong><\/p>\n

A\u00a0credit rating\u00a0is an assessment of how likely a borrower, such as a government, is to repay its debt on time and in full. For sovereign states, ratings influence how much countries pay to borrow in international markets: the lower the rating, the higher the perceived risk and usually the higher the interest costs.<\/p>\n

The current system too often relies on \u201coutdated and incomplete information\u201d,\u00a0leaving countries unfairly penalised in global capital markets, the\u00a0deputy UN chief Amina Mohammed\u00a0told the opening of the UN\u2019s\u00a0Economic and Social Council<\/a>, ECOSOC, Special Meeting on Credit Ratings, delivering remarks on behalf of Secretary-General\u00a0Ant\u00f3nio Guterres.<\/p>\n

\u201cAdequate and timely finance is the fuel that drives sustainable development,\u201d the Deputy Secretary-General said, warning that \u201ctoday that fuel is running perilously low, and it\u2019s getting more costly.\u201d<\/p>\n

She pointed to nearly $1.4 trillion in annual debt servicing costs across developing countries, while more than\u00a03.4 billion people live in countries that spend more on debt interest payments than on health or education.<\/p>\n

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Global instability<\/h4>\n

Mohammed added that global instability is deepening the crisis. Rising fuel and raw material costs linked to conflict and economic volatility are intensifying fiscal pressures and slowing growth, while climate-vulnerable countries continue to face disaster losses without access to affordable recovery financing.<\/p>\n

\u201cThis is a matter of profound importance,\u201d Mohammed said.<\/p>\n

Debt reform efforts broaden<\/h4>\n

Mohammed also linked the credit ratings debate to wider efforts to reform the global debt architecture and pointed to new steps aimed at giving developing countries a stronger voice in debt discussions.<\/p>\n

These include a borrowers\u2019 platform, work on principles for responsible sovereign borrowing and lending, and a UN-led process bringing together debtor and creditor countries, private creditors, international financial institutions, academics and civil society.<\/p>\n

She also cited the planned African Credit Rating Agency as an example of efforts to improve data, transparency and risk assessment.<\/p>\n

Call to reimagine ratings<\/h4>\n

Mohammed urged a major shift in how sovereign ratings are designed, arguing that assessments should capture not only vulnerability, but also opportunity.<\/p>\n

\u201cWe must transform the mindsets from long-term speculation to long-term investment,\u201d she said, calling for broader, more transparent and forward-looking methodologies that better reflect countries\u2019 real prospects.<\/p>\n

Mohammed stressed that affordable borrowing for development can strengthen a country\u2019s future solvency.<\/p>\n

Investment in health, education, infrastructure, climate resilience and renewable energy, she said, can generate prosperity, reduce risk and improve economic stability over time.<\/p>\n

She also criticised narrow measures of progress, insisting that \u201cGDP tells us the cost of everything and the value of very little.\u201d<\/p>\n

Mohammed called for greater accountability from governments, investors and ratings providers alike, alongside stronger data and fairer methodologies.<\/p>\n

\u201cIt\u2019s time to turn credit ratings from barriers into contributors to long-term finance and sustainable development,\u201d Mohammed said, urging a new approach that helps developing countries secure the financing they need.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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The post Developing countries are being priced out, in struggle for affordable finance<\/a> appeared first on KBC Digital<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Developing countries are being priced out of the\u00a0affordable finance they desperately need for sustainable development, with sovereign credit ratings often overstating risk and overlooking long-term economic potential, the UN said on Monday. A\u00a0credit rating\u00a0is an assessment of how likely a borrower, such as a government, is to repay its debt on time and in full. […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-136134","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/136134","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/comments?post=136134"}],"version-history":[{"count":0,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/136134\/revisions"}],"wp:attachment":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/media?parent=136134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/categories?post=136134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/tags?post=136134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}