Improving Public Debt Management
In the OIC Member Countries
53
Figure 3-9: Maturity of New External Debt Commitments in OIC Member Countries
Sources: World Bank (2016) International Debt Statistics, calculations by the Ifo Institute.Interest rate risk
Interest ratesOver the last decade, many OIC countries had fixed interest rates. Since 2010 the share of loans
with fixed interest rates in total loans has been almost 100% in OIC countries.
The upper panel of Figure 310 shows that the average interest rate on public debt has been
relatively stable and low in OIC countries over the last decade (on average about 1.8% in
2014). Official creditors lend at preferential rates (on average about 1.2% in 2014). The
average interest rate for private credits decreased to 3.9% in 2014, a rate being higher than
the worldwide average. Lowincome countries face lower interest rates than middleincome
ones presumably because they have access to concessional lending as well as development and
promotional loans. Average interest rates in the Arab and Asian group have decreased over the
last years, while average interest rates in the African group have increased since 2006 (see
lower right panel of Figure 310).
5
10
15
20
25
In years
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Year
All Official creditors Private creditors
15
20
25
30
In years
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Year
All Low income
Middle income
10
15
20
25
30
35
In years
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Year
All Arab group
Asian group African group