To remedy this the bank called for a fundamental change in the way debtor and creditor countries report and disclose debt.
These include private placements -- a kind of funding round done not publicly but privately, central bank swaps, and collateralized transactions, the bank said in a report on debt transparency.
And countries are now turning to local investors as they take on debt but not publishing numbers on these loans.
In Senegal, for instance, an independent administrative court that serves as an auditor said in February the government debt in that African nation had risen to 99.67 percent of GDP -- a rate one-quarter higher than what had been announced by the previous government.
Other countries negotiated secretly to restructure their debt with some of their creditors, the World Bank said.
The bank called on countries to carry out reforms to improve their transparency practices.
“These include legal and regulatory reforms mandating transparency in loan contracts and disclosure of lending terms, full participation by creditor countries in comprehensive debt reconciliation processes, more regular audits and national better oversight, and the public release of debt restructuring terms once agreements are finalized,“ the bank’s statement said.
Read More Details
Finally We wish PressBee provided you with enough information of ( World Bank seeks more transparency in debt practices )
Also on site :