How much of OECD sovereign debt is set to mature by 2027, according to the Global Debt Report 2025?

Correct option is B

The correct answer is (B) 45%.

Explanation:

• According to the OECD Global Debt Report 2025, approximately 45% of the sovereign debt in OECD countries is set to mature by 2027.
• This significant volume of maturing debt poses refinancing challenges, especially as much of it was issued during periods of low interest rates.
• Refinancing this debt at current higher interest rates could increase fiscal pressure on governments.

Information Booster:

• The report highlights that the average government interest costs have already reached 3.3% of GDP, surpassing defense budgets in many OECD countries.
• The composition of bondholders is shifting, with central bank holdings decreasing from 29% in 2021 to 19% in 2024, while foreign investors' share has increased to 34%.
• This shift in bondholder composition could lead to increased market volatility and higher borrowing costs for governments.