disaster
World: IRC Calls on Multilateral Development Banks and Development Finance Institutions to Deploy Credit Guarantees to Help Unlock Humanitarian Debt Swaps in Fragile Contexts
By International Rescue Committee at ReliefWeb
· June 24, 2026
· 4 min read
. The paper calls on multilateral development banks, development finance institutions, and governments to take specific steps to make that possible, particularly by expanding the use of partial credit guarantees, political risk insurance, and other forms of credit enhancement to support debt swap tr
Key takeaway The share of Overseas Development Assistance (ODA) received by fragile and conflict-affected states is declining, falling to 25% compared to 43% more than a decade ago.
Why this matters
The International Rescue Committee's call to action highlights the critical need for innovative financing solutions in humanitarian crises. With global humanitarian assistance at a decade-low and developing countries struggling to balance debt service obligations with humanitarian response, the potential for debt swaps to unlock resources is significant. By converting debt obligations into commitments toward social or humanitarian outcomes, countries like Pakistan, Nigeria, and Ethiopia can free up fiscal space to address pressing needs. The IRC's proposed blended guarantee model, combining partial credit guarantees and political risk insurance, could help mitigate risks and enable the first generation of humanitarian debt swaps. This approach requires collaboration among multilateral development banks, governments, and humanitarian organizations to ensure that savings reach crisis-affected communities and align with government priorities. As the humanitarian financing crisis deepens, the success of this initiative will depend on the willingness of key stakeholders to treat the current moment as an imperative to act.
About this story
Original reporting by ReliefWeb . Jesus Give surfaces reporting from trusted publishers and adds local editorial context so readers can quickly understand what a story means for their community. We attribute every source, link to the original report, and follow a documented editorial standards policy. To understand how stories are selected and reviewed, read our about page .
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Category: disaster ·
Published: June 24, 2026 ·
Source: ReliefWeb ·
Reading time: 4 min
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Frequently asked about this story
What is this story about? . The paper calls on multilateral development banks, development finance institutions, and governments to take specific steps to make that possible, particularly by expanding the use of partial credit guarantees, political risk insurance, and other forms of credit enhancement to support debt swap tr
When was this published? This article was first published on June 24, 2026 by ReliefWeb and curated for Jesus Give readers.
Who reported this story? This story was reported by International Rescue Committee at ReliefWeb. To learn more about how Jesus Give selects and reviews stories, see our editorial standards .
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