# Public Loans, Private Gains: Addressing corruption across the debt cycle URL: https://www.transparency.org/en/publications/public-loans-private-gains-addressing-corruption-across-the-debt-cycle Type: Publication or report Published: 2025-09-04 Updated: 2025-09-04 --- 04 September 2025 The world is facing a mounting public debt crisis, with several countries burdened by rising repayment costs that often outpace spending on essential services like education and healthcare. While debt is a critical tool for financing development, weak governance and opaque financial practices create fertile ground for corruption, undermining accountability and deepening economic vulnerabilities. This working paper explores how corruption risks permeate every stage of the sovereign debt cycle - from contracting and management to restructuring. Drawing on global trends and case studies from Ecuador and Papua New Guinea, it shows how hidden debt, opaque negotiations and misuse of funds divert resources away from public goods and into private hands. It also highlights the role of international creditors, state-owned enterprises and non-traditional lenders in perpetuating secrecy and poor accountability. The paper reviews existing transparency and accountability initiatives and identifies key gaps, underscoring the need for stronger safeguards. It calls for urgent reforms by both borrowers and lenders, including more robust disclosure standards, mandatory anti-corruption audits, and meaningful engagement with civil society. ### Related publications ## [Enabler Accountability: Assessing Measures Taken against Professionals Implicated in Cases of Illicit Financial Flows from Africa](https://www.transparency.org/en/publications/enabler-accountability-illicit-financial-flows-africa) Publication • 31 March 2026 How often are enablers of illicit financial flows held to account? We examine criminal and administrative action, enforcement gaps and priorities for reform. ## [Digital disclosure of political finance in Africa, Asia and the Pacific, and Latin America and the Caribbean](https://www.transparency.org/en/publications/digital-disclosure-political-finance-africa-asia-pacific-latin-america-caribbean) Publication • 06 November 2025 This study reviews the approaches to digital disclosure of political party and candidate finance in three regions. ## [The role of business in fighting impunity and corruption to protect environmental defenders](https://www.transparency.org/en/publications/the-role-of-business-in-fighting-impunity-and-corruption-to-protect-environmental-defenders) Publication • 20 October 2025 The paper offers a roadmap for action, urging businesses, policymakers, and investors to embed integrity beyond compliance and strengthen protections for defenders and… ## [Addressing corrupt uses of artificial intelligence](https://www.transparency.org/en/publications/addressing-corrupt-uses-of-artificial-intelligence) Publication • 17 June 2025 This working paper covers the corrupt use of AI in the public sector, proposing a definition, manifestations of corrupt use of AI, and a suite of recommendations. ## Projects - [Climate Governance Integrity Programme](https://www.transparency.org/en/projects/climate-governance-integrity-programme) - [Indo-Pacific Partnership for Strong, Transparent, Responsive & Open Networks for Good Governance (IPP STRONGG) Phase II 2024 – 2029](https://www.transparency.org/en/projects/ti-indo-pacific-partnership-strong-transparent-responsive-open-networks-good-governance-ipp-strongg-phase-ii-2024-2029) ![](https://images.transparencycdn.org/images/2508_Report_PublicLoansPrivateGains.jpg?auto=compress&fit=crop&fm=webp&w=1200) [Download](https://images.transparencycdn.org/images/WorkingPaper_PublicDebt_TI.pdf)