Why are developing countries paying out more on debt than new financing brings in?

Check your understanding

15-question test

Answer all the questions, then check your results.

1. True / False

   1.The article presents its debt evidence as a measurement of developing countries’ debt conditions in 2026.

   ATrueBFalse
2. 2.A country can receive new loans while still experiencing a negative net flow after debt service.

   ATrueBFalse
3. 3.The World Bank provided IDA-eligible countries with more new financing than it received from them in principal and interest payments in 2024.

   ATrueBFalse

4. Reading Comprehension

   4.What does the $415 billion figure measure?

   ADeveloping countries’ external-debt principal repayments in 2024BThe financing announced at the Bangkok gatheringCThe World Bank’s lending to IDA-eligible countries in 2024DDeveloping countries’ external-debt interest payments in 2024
5. 5.Inference: Why does the article contrast the overall debt balance with the World Bank’s financing to IDA-eligible countries?

   ATo establish that every developing country received positive net financingBTo suggest that principal repayments are excluded from all financing comparisonsCTo show that a negative overall balance can conceal positive individual financing relationshipsDTo demonstrate that the Bangkok meetings have already resolved the financing gap
6. 6.What role does the forthcoming plenary play in the article’s conclusion?

   AIt provides an opportunity for public scrutiny without proving that an agreement exists.BIt confirms that creditors have cancelled developing countries’ external debt.CIt supplies a new measurement of debt conditions in 2026.DIt establishes which public programmes have lost funding.

7. Grammar & Phrasal Verbs

   7.Which sentence would sound most natural in professional English?

   AThe assessment should account debt payments before judging the resources available.BThe assessment should take account for debt payments before judging the resources available.CThe assessment should account on debt payments before judging the resources available.DThe assessment should account for debt payments before judging the resources available.
8. 8.Which reformulation best preserves the meaning of “new borrowing need not mean more money available to spend”?

   ANew borrowing must not increase the money available to spend.BNew borrowing never increases the money available to spend.CNew borrowing does not necessarily increase the money available to spend.DNew borrowing does not need to be repaid before money is spent.
9. 9.Which alternative best preserves the contrast in “turns negative—even while new loans arrive”?

   Abecomes negative despite the continued arrival of new loansBbecomes negative only after new loans stop arrivingCremains positive provided that new loans keep arrivingDbecomes negative in order to attract new loans

10. Prepositions

    10.Complete the sentence: “The Annual Meetings are scheduled ___ 12–18 October 2026.”

    AatBonCbyDfor
11. 11.Complete the sentence: “Servicing debt can compete ___ other budget priorities.”

    AtoBwithCofDfrom
12. 12.Complete the sentence: “New financing exceeded principal and interest payments ___ $18.3 billion.”

    AatBtoCbyDwith

13. Vocabulary & Synonyms

    13.What does “room for manoeuvre” mean in the discussion of public budgets?

    APhysical space for financial meetingsBFlexibility to make spending decisionsCPermission to ignore repayment obligationsDCertainty about future borrowing costs
14. 14.Which word most closely replaces “outweigh” in the article’s explanation of financing flows?

    AexceedBoffsetCgenerateDpostpone
15. 15.What does “the aggregate picture” refer to?

    AThe circumstances of a typical individual borrowerBThe combined result across the groupCThe terms offered by a particular creditorDThe expected outcome of the forthcoming plenary