Geneva: Europe and the Arabs
A new United Nations-backed forum was announced in Geneva to help developing countries overcome the burden of unsustainable debt, which has forced more than three billion people worldwide to spend huge sums on repaying their debts at the expense of health and education.
The Seville Debt Forum will promote fairer lending, rapid restructuring, and long-term reform of the post-war financial system.
Hosted by Spain and supported by the United Nations, the forum aims to maintain global attention on the debt crisis while translating the firm commitments made at the Fourth International Conference on Financing for Development, held in Seville last June, into concrete action. According to the UN Daily News Bulletin, which added, "Governments, finance ministers, and creditors from both developed and developing countries will meet in what UN Secretary-General António Guterres has called a 'global debt dialogue,' aimed at achieving financial justice and ensuring that borrowing works for developing economies, not against them."
Guterres said at the forum's launch event: "Developing countries spend $1.4 trillion annually on debt service. 3.4 billion people live in countries that spend more on debt service than on health or education. Countries should never have to choose between servicing their debts or serving their people.
Fairer and more sustainable global finance
The new forum will also support the Seville Commitment, an ambitious roadmap agreed upon at the Fourth International Conference on Financing for Development to make global finance fairer and more sustainable.
This document outlines plans to reduce borrowing costs, enable timely and equitable debt restructuring, and enhance transparency and accountability.
A Borrowers' Forum was established in Seville in July to help heavily indebted countries coordinate their efforts, share legal and technical expertise, and make their voices heard in a system long dominated by large lenders.
Fiscal Justice People Deserve
The Seville Process reflects growing concern that high debt is hindering progress toward the Sustainable Development Goals.
More than 60 developing countries now spend at least 10% of their government revenue on interest payments, while many struggle to access affordable loans.
Under the new Debt Forum, countries will work together to To establish common principles for responsible borrowing and lending, strengthen crisis prevention mechanisms, and explore reform of the global debt architecture.
The UN Secretary-General said, "The Seville Debt Forum will help achieve the financial justice that people and countries need and deserve."