Organized by Spain and supported by the United Nations, the forum is designed to maintain global attention on the debt crisis while translating into concrete action the firm commitments made at the Fourth International Conference on Financing for Development (FFD4) held in June in Seville.
Governments, finance ministers and creditors from developed and developing countries will come together for what the UN Secretary-General calls “a global debt dialogue”, which aims to achieve financial justice and ensure that debt works for, not against, developing economies.
“Developing countries spend $1.4 trillion annually on debt service,”said António Guterres at the launch in Geneva.
“And 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 debt or serving their people.“
3.4 billion people live in countries that spend more on interest than on health or education.
Commitment to action
The new forum will also support the Seville Commitment, an ambitious roadmap agreed at the FFD4 conference to make global finance fairer and more sustainable.
That document set out plans to reduce 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 indebted countries coordinate their efforts, share legal and technical knowledge and amplify their voice in a system long dominated by big lenders.
Delivering for the people
The Seville process – which includes both the Commitment and the Platform for Action – reflects growing concern that skyrocketing debt is derailing progress towards the Sustainable Development Goals (SDGs).
More than 60 developing countries now spend at least 10 percent of public revenues on interest paymentswhile 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lending, strengthen crisis prevention mechanisms and explore reforming the global debt architecture, long considered outdated and fragmented.
“The Seville Debt Forum help achieve the financial justice that people and countries need and deserve“said Mr. Guterres. “The United Nations is proud to be part of this effort, and I thank Minister (Carlos) Corps and the Government of Spain for their tireless efforts.”