Sevilla: A new mechanism offering debt-distressed countries a way to coordinate action and amplify their voice in the global financial system has been launched at the UN’s pivotal sustainable development conference in Sevilla. The Borrowers Forum is being hailed as a milestone in efforts to reform the international debt architecture, supported by the UN and emerging as a key part of the Sevilla Commitment outcome document.
According to United Nations, Egypt’s Minister of Planning and Economic Development, Dr. Rania Al-Mashat, emphasized that the Borrowers Forum is not merely a discussion platform but a tangible plan driven by countries to create a shared voice and strategy in confronting debt challenges. Zambian Foreign Minister Mulambo Haimbe expressed optimism about the initiative, noting it would foster long-term partnerships, mutual respect, and shared responsibility. Spain’s Finance Minister Carlos Cuerpo highlighted the urgency of the current debt crisis, describing it as silent but urgent, and likened the Forum to a Sevilla moment, matching the historical Paris Club of creditors.
UN Special Envoy on financing the 2030 Agenda, Mahmoud Mohieldin, stated that the forum was a response to a system that has kept debtor countries isolated for too long. The launch comes amid rising debt distress across the developing world, with the Sevilla Commitment, or Compromiso de Sevilla, calling for sovereign debt reform, enhanced debt transparency, improved coordination among creditors, and a multilateral legal framework for debt restructuring.
Civil society groups criticized the outcome of the Sevilla conference, viewing it as a missed opportunity for meaningful reform of the global debt system. Jason Braganza of the African Forum and Network on Debt and Development (AFRODAD) noted that nearly half of African countries are facing a debt crisis, emphasizing the need for investments in health, education, and clean water rather than creditor payments. Despite the criticism, Braganza acknowledged a small breakthrough with a new intergovernmental process that could lead to future reform.
Civil society leaders cautioned against debt-for-climate swaps, with Braganza labeling them false solutions that fail to provide genuine fiscal space for developing nations. Tove Ryding of the European Network on Debt and Development (Eurodad) echoed these concerns, highlighting existing economic injustice and the need for real change, as demonstrated by progress on a new UN Tax Convention.
In response to global health challenges, Spain launched the Global Health Action Initiative to revitalize the health ecosystem, channeling significant funds into the global health system. Additionally, the UN health agency introduced the 3 by 35 Initiative, urging governments to raise taxes on tobacco, alcohol, and sugary drinks to reduce consumption and generate public revenue. WHO highlighted that these health taxes could prevent millions of premature deaths and generate substantial revenue for reinvestment in public services.