Geneva: The Sevilla Forum on Debt, supported by the United Nations, commenced Wednesday in Geneva, aiming to assist developing countries in tackling unsustainable debt burdens that compel nearly 3 billion people worldwide to prioritize debt repayments over crucial health and education spending.
According to Jordan News Agency, the forum seeks to advocate for fairer lending practices, expedite debt restructuring, and implement long-term financial system reforms, particularly in post-conflict scenarios. Hosted by Spain with the backing of the UN, the initiative focuses on maintaining global awareness of the debt crisis and transforming commitments from the Fourth International Conference on Financing for Development in Sevilla last June into actionable steps.
The event sees participation from governments, finance ministers, and creditors from both developed and developing countries. UN Secretary-General Ant³nio Guterres described the gathering as a "global dialogue on debt," aimed at ensuring financial justice and ensuring that borrowing supports rather than undermines developing economies.
During the forum's inauguration, Guterres highlighted that developing countries spend $1.4 trillion annually on debt servicing, with approximately 3.4 billion people residing in countries where debt payments exceed expenditures on health or education. He asserted that no nation should be forced to choose between servicing debt and serving its populace.
Currently, over 60 developing countries allocate at least 10% of government revenues to interest payments, while many face challenges in accessing affordable financing.
The new framework encourages participating nations to establish common principles for responsible borrowing and lending, strengthen crisis prevention mechanisms, and explore reforms within the global debt architecture. Guterres emphasized the forum's role in achieving the financial justice necessary for both people and nations.