New UN Forum Builds on Sevilla Pledges to Tackle Debt

Simone D. McCourtie – A vendor arranges products in her small business storefront in Hanoi, Viet Nam. World Bank

A new UN-backed forum was launched on Wednesday to help developing nations escape the burden of unsustainable debt – a crisis that has left more than three billion people living in economies forced to spend more on repayments than on health or education.

The Sevilla Forum on Debt will promote fairer lending, faster restructuring, and long-term reform of the post-war financial system.

Hosted by Spain and supported by the United Nations, the forum is designed to sustain global attention on the debt crisis while turning firm commitments made at June’s Fourth International Conference on Financing for Development (FFD4) in Seville into concrete action.

Governments, finance ministers, and creditors from both developed and developing countries will join forces for what the UN Secretary-General calls “a global dialogue on debt” – one that aims to deliver financial justice and ensure that borrowing serves, rather than burdens, developing economies.

“Developing countries spend $1.4 trillion annually on debt service,” António Guterres said at the launch in Geneva.

“And 3.4 billion people live in countries that spend more on servicing debt than on health or education. Countries should never have to choose between servicing their debt or serving their people.”

Commitment to action

The new forum will also support the Sevilla Commitment, an ambitious roadmap agreed at the FFD4 conference to make global finance fairer and more sustainable.

The document outlines plans to lower borrowing costs, enable timely and equitable debt restructuring, and strengthen transparency and accountability.

It also established a Borrowers’ Forum, launched in Seville in July, to help debt-distressed countries coordinate their efforts, share legal and technical expertise, and amplify their voice in a system long dominated by major lenders.

Delivering for the people

The Seville process – encompassing both the Commitment and the Platform for Action – reflects growing concern that soaring debt is derailing progress toward the Sustainable Development Goals (SDGs).

More than 60 developing countries now spend at least 10 per cent of government revenue on interest payments, while many face declining access to affordable credit.

Under the new framework, countries will work to develop shared principles for responsible borrowing and lending, strengthen crisis-prevention mechanisms, and explore reform of the global debt architecture – long seen as outdated and fragmented.

“The Sevilla Forum on Debt will help deliver the financial justice that people and countries need and deserve,” Mr. Guterres said. “The United Nations is proud to be part of this effort, and I thank Minister [Carlos] Cuerpo and the Government of Spain for their tireless work.”