Kathmandu. The world is burdened with debt and the global debt has now reached $ 365 trillion. <\/p>\n
Citing the latest data from the Institute of International Finance (IIF), the Financial Commentary Publication’s ‘The Kobesi Letter’ report highlights the global debt burden. It has reached a record level in the first six months of 2026. Debt has increased by more than $1 trillion in just 8 months. <\/p>\n
Looking at the IIF’s chart of global debt, it is clear that it has been steadily increasing over the past several years. From about $25 trillion in fiscal year 2018, global debt is now projected to reach about $365 trillion in the first half of 2026. <\/p>\n
The recent increase in credit data has been particularly evident in emerging markets. According to the Kobesi paper, emerging market lending increased by $6.5 trillion to $1.1 trillion in the first six months of 2026. The government and non-financial companies have contributed the most to this growth. <\/p>\n
The total debt to emerging market and developing economies, excluding China, has reached about $38 trillion, the report said. This highlights the growing financing needs outside of the world’s largest developed economies. <\/p>\n
Emerging economies are at the center of global debt. That has reached $365 trillion. Governments continue to borrow to finance public spending, infrastructure, and fiscal deficits. However, companies have also relied on debt to finance investments and operations. This is now creating the conditions for governments and companies to use a significant portion of their income to meet existing obligations. <\/p>\n
According to experts, this debt problem can be more complicated for emerging markets if the debt is denominated in foreign currency. A weak domestic currency can increase the local currency cost of debt service denominated in dollars or euros. <\/p>\n
The biggest concern amid rising global debt is not just the size of the debt but also the cost of servicing it. The Kobesi paper estimates that developed economies paid more than $3.3 trillion in interest on government debt last year. That’s much higher than global spending estimates. This includes spending on AI, $3.1 trillion in defense, and $2.3 trillion in clean energy. <\/p>\n
These figures clearly show how debt servicing costs have quickly become a significant burden on government finances. Annual government interest payments have also increased significantly in G7 countries. The Kobesi paper estimates an 85 percent year-on-year increase. \u2013 Agency<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. The world is burdened with debt and the global debt has now reached $ 365 trillion. Citing the latest data from the Institute of International Finance (IIF), the Financial Commentary Publication’s ‘The Kobesi Letter’ report highlights the global debt burden. It has reached a record level in the first six months of 2026. Debt […]<\/p>\n","protected":false},"author":16,"featured_media":317385,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45044,45159],"tags":[],"class_list":["post-317387","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/317387","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=317387"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/317387\/revisions"}],"predecessor-version":[{"id":317388,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/317387\/revisions\/317388"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/317385"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=317387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=317387"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=317387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}