What drives borrowing costs for businesses in developing countries? Paolo MauroCesaire Meh June 23, 2026 This page in: English Français Español العربية

https://blogs.worldbank.org/en/developmenttalk/what-drives-borrowing-costs-for-businesses-in-developing-countri For a business in a developing country, the cost of borrowing is determined not just by their credit-worthiness, but by a range of factors beyond their control. Firms in low- and middle-income countries pay, on average, 2 percentage points more in real interest than comparable firms in a rich country. Compounded over years and across thousands of firms, represents an enormous cost to private sector development and job creation.