Global debt climbed to a record level of nearly $346 trillion in the third quarter of this year, driven mainly by government borrowing, according to a report released by the Institute of International Finance (IIF).

Over the past two decades, China has become the world’s largest bilateral lender, reshaping the global financial order. Through massive infrastructure financing programs—especially under the Belt and Road Initiative (BRI)—Beijing has extended loans worth hundreds of billions of dollars to developing and emerging economies. For many nations, these loans have fueled rapid infrastructure development: railways, highways, ports, energy plants, telecom networks. Yet they have also created substantial fiscal burdens and new geopolitical dependencies.

By Faiq Mahmudov

During this year’s United Nations climate conference COP29, host-country Azerbaijan will strive to act as a bridge-builder between all members of the international community, finding common ground among countries on key issues like climate finance and energy transition but also to advance the peace agenda as global conflicts continue to take a heavy toll on people’s lives and the environment.