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On 22 October 2025, the United Nations Conference on Trade and Development (UNCTAD), the United Nations Department of Economic and Social Affairs (UN DESA) and the Spanish government launched the Sevilla Forum on Debt during UNCTAD’s 16th ministerial conference in Barcelona. The forum aims to address the growing global sovereign debt crisis and follow up on the “Sevilla Commitment” adopted earlier in 2025.
Background
Global public debt reached roughly US $102 trillion in 2024, with developing countries owing around $31 trillion and paying an estimated $921 billion in interest annually. Rising debt burdens force many governments to spend more on debt service than on health or education, hampering progress towards the Sustainable Development Goals. In response, the International Conference on Financing for Development held in Sevilla earlier in 2025 adopted the Sevilla Commitment, calling for responsible borrowing and lending and better coordination among creditors and debtors. Spain, as host of UNCTAD 16, proposed a permanent forum to keep the political momentum alive.
Key aspects
- Inclusive dialogue: The Sevilla Forum will provide an open platform where borrowers, lenders, international financial institutions and civil society can discuss debt challenges and reforms.
- Monitoring commitments: It will track the implementation of the Sevilla Commitment and other initiatives, such as the Debt Pause Clause Alliance (which proposes suspending debt payments after major disasters) and debt‑for‑climate swaps.
- Developing principles: Participants will work on principles for responsible borrowing and lending, promoting transparency and fair treatment of all creditors.
- Focus on developing nations: The forum recognises that the debt crisis disproportionately affects low‑ and middle‑income countries, jeopardising the well‑being of 3.4 billion people who live in countries spending more on debt service than on education or health.
Significance
- The forum represents a multilateral effort to move debt issues from ad hoc negotiations to a structured, inclusive process, potentially leading to more predictable and equitable outcomes.
- By elevating debt sustainability on the global agenda, it pressures creditor nations and private lenders to consider long‑term impacts on development and climate goals.
- Developing countries stand to benefit from mechanisms such as debt swaps for climate and development projects, easing fiscal pressure while investing in resilience.
- The initiative underscores the need for reforming the international financial architecture to balance the interests of creditors and debt‑burdened nations.
Conclusion
The Sevilla Forum on Debt is an important step towards tackling the systemic causes of sovereign debt crises. Its success will depend on meaningful participation by all stakeholders and on translating dialogue into concrete reforms.
Source: Down To Earth