Archive · 30 Jul 2025
World Bank Seeks Funding Boost with Debt Swaps, Securitization
The World Bank is trying to help poor countries grow faster.
They plan to use two main ideas: securitization and debt swaps.
Securitization means they'll group some projects together to get money from private investors.
Debt swaps involve helping countries save money on their loans, so they can spend the savings on things like education.
They're working with a company called Goldman Sachs to try out the securitization plan.
The goal is to create jobs and help these countries develop faster.
World Bank plans to securitize projects and use debt swaps to accelerate development in poor nations.
Securitization involves packaging World Bank-backed projects to attract private funding, with a pilot project in development.
Debt-for-development swaps allow countries to save on interest and invest in development, exemplified by a deal with Ivory Coast.
The bank is working with Goldman Sachs on a pilot project for securitization.
The initiative aims to create jobs for the growing number of young people globally.
- Who
- World Bank, President Ajay Banga, Goldman Sachs, and developing nations.
- What
- World Bank plans securitization and debt swaps.
- When
- The plans are in development as of July 30, 2025.
- Where
- Primarily focused on developing nations in Africa and Asia.
- Why
- To accelerate development in poor nations and create jobs.
- Initiative
- Securitization and Debt Swaps
- Goal
- Accelerate Development
- Key People
- Ajay Banga
- Partner
- Goldman Sachs
- Pilot Project Location
- Not Specified
- Example Deal
- Ivory Coast