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 keep global attention on the debt crisis while converting 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 band together for what the UN Secretary-General calls “a global dialogue on debt” – one that aims to deliver financial justice and ensure that borrowing works for, not against, developing economies.
“Developing countries spend $1.4 trillion on annual 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.”
3.4 billion people live in countries that spend more on interest than on health or on education.
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.
That document set out 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 big lenders.
Delivering for the people
The Seville process – including 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and lending, strengthen crisis-prevention mechanisms and explore reform of the global debt architecture – long seen as outdated and fragmented.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 efforts.”
