The Sevilla Discussion board on Debt will promote fairer lending, sooner restructuring and long-term reform of the post-war monetary system.
Hosted by Spain and supported by the United Nations, the discussion board is designed to maintain world consideration on the debt disaster whereas changing agency commitments made at June’s Fourth Worldwide Convention on Financing for Growth (FFD4) in Seville into concrete motion.
Governments, finance ministers and collectors from each developed and growing international locations will band collectively for what the UN Secretary-Basic calls “a worldwide dialogue on debt” – one which goals to ship monetary justice and be sure that borrowing works for, not in opposition to, growing economies.
“Growing international locations spend $1.4 trillion on annual debt service,” António Guterres stated on the launch in Geneva.
“And three.4 billion folks stay in international locations that spend extra on servicing debt than on well being or training. International locations ought to by no means have to decide on between servicing their debt or serving their folks.”
3.4 billion folks stay in international locations that spend extra on curiosity than on well being or on training.
Dedication to motion
The brand new discussion board can even help the Sevilla Dedication, an formidable roadmap agreed on the FFD4 convention to make world finance fairer and extra sustainable.
That doc set out plans to decrease borrowing prices, allow well timed and equitable debt restructuring, and strengthen transparency and accountability.
It additionally established a debtors’ discussion board, launched in Seville in July, to assist debt-distressed international locations coordinate their efforts, share authorized and technical experience, and amplify their voice in a system lengthy dominated by large lenders.
Delivering for the folks
The Seville course of – together with each the Dedication and the Platform for Motion – displays rising concern that hovering debt is derailing progress towards the Sustainable Growth Targets (SDGs).
Greater than 60 growing international locations now spend not less than 10 per cent of presidency income on curiosity funds, whereas many face declining entry to inexpensive credit score.
Underneath the brand new framework, international locations will work to develop shared ideas for accountable borrowing and lending, strengthen crisis-prevention mechanisms and discover reform of the worldwide debt structure – lengthy seen as outdated and fragmented.
“The Sevilla Discussion board on Debt will assist ship the monetary justice that folks and international locations want and deserve,” Mr. Guterres stated. “The United Nations is proud to be a part of this effort, and I thank Minister [Carlos] Cuerpo and the Authorities of Spain for his or her tireless efforts.”
