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 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 funding rate, the competition for scarce resources between debt service obligations and humanitarian response is becoming increasingly dire in countries like Pakistan, Nigeria, and Ethiopia. Debt swaps, which have been successfully used for conservation and development goals, offer a potential solution by converting debt obligations into commitments toward social or humanitarian outcomes. The IRC's proposed blended guarantee model, combining partial credit guarantees and political risk insurance, could help unlock these transactions and free up fiscal space for crisis-affected communities. By leveraging the expertise of humanitarian organizations to shape use-of-proceeds arrangements, this approach can ensure that savings reach those in need while aligning with government priorities and reducing perceived risks. Effective implementation of this model could have significant implications for the future of humanitarian financing.
About this story
Original reporting by ReliefWeb . Christgiving 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 .
For the complete original report, visit ReliefWeb . Have a tip or correction? Contact our newsroom .
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 Christgiving readers.
Who reported this story? This story was reported by International Rescue Committee at ReliefWeb. To learn more about how Christgiving selects and reviews stories, see our editorial standards .
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