🌍 Global Debt Crisis in Focus
Speaking at the 16th United Nations Conference on Trade and Development (UNCTAD16) in Geneva, UN Secretary-General António Guterres delivered a stark assessment of the global debt landscape. He revealed that 3.4 billion people now live in countries where debt servicing exceeds public spending on health or education, underscoring the scale of fiscal distress in the developing world UNCTAD.
Guterres described many developing nations as “victims of limited fiscal space, slow growth, and the debt crisis,” calling for a fundamental overhaul of international financial architecture to ensure equitable access to capital and sustainable development pathways UN News.
🧾 Sevilla Forum on Debt: A New Platform for Action
The remarks coincided with the launch of the Sevilla Forum on Debt, a new UN-backed initiative hosted by Spain. The forum aims to:
- Promote fairer lending practices
- Accelerate debt restructuring mechanisms
- Reform the post-war financial system to better serve low- and middle-income countries UNCTAD UN News
The Sevilla Forum builds on commitments made at the Fourth International Conference on Financing for Development (FFD4) held in Seville earlier this year, where global leaders pledged to unlock more concessional finance, improve debt transparency, and support sovereign debt sustainability unognewsroom.org.
📉 The Numbers Behind the Crisis
- Global public debt reached $102 trillion in 2024
- Developing countries owe $31 trillion, with $921 billion paid annually in interest
- Many nations face credit downgrades, capital flight, and limited access to concessional lending, exacerbating poverty and inequality UNCTAD
🔍 UNCTAD’s Role
UNCTAD and the UN Department of Economic and Social Affairs (UN DESA) will provide technical expertise to the Sevilla Forum, facilitating dialogue among creditors, borrowers, multilateral institutions, and civil society. The goal is to create inclusive, transparent, and accountable debt solutions that prioritize human development over financial returns UNCTAD unognewsroom.org.
Sources:
UNCTADUNCTAD – Sevilla Forum on Debt Launched
UN NewsUN News – Guterres at UNCTAD16
unognewsroom.orgUNOG Newsroom – UNCTAD16 Press Conference
UN-Secretary-General-Antonio-Guterres-Picture-Creator-John-Thys
