A distinct shift in the creditor base over time in favour of private lenders and nonParis Club official creditors has added a new dimension to debt restructuring processes for the low-income International Development Assistance (IDA)-eligible debtor countries. The share of debt owed to non-Paris Club creditors rose to 68 per cent in 2021 from 42 per cent in 2010.
The increasing reliance on private creditors has raised debt servicing costs and complicated creditor coordination in debt resolution efforts.