WASHINGTON

The World Bank said in a report Friday that more developing economies are turning to off-budget and more complex borrowing arrangements, noting that the situation makes it difficult to fully assess public debt risks.

The report, “Radical Debt Transparency," recommended fundamental changes in the way debtor and creditor countries report and disclose their debts to address the issues, including expanding the scope of reporting and providing more detailed disclosures on a loan-by-loan basis.

It noted that although the rate of publication of some debt data by low-income countries has risen from below 60% in 2020 to above 75%, only 25% disclose information at the loan level regarding newly incurred debt.

The World Bank's report also noted that the increasing use of complex and often non-transparent financing arrangements, such as special allocations, central bank swaps and collateralized transactions, further complicates reporting.