On 22 October 2025, during UNCTAD16 in Geneva, the Sevilla Forum on Debt was officially launched. This new platform brings together developing-country governments, international creditors, the UN system and civil society to tackle the growing sovereign debt crisis. As of 2024, developing nations carry nearly US$31 trillion in external debt and paid about US$921 billion in interest—many now spend more on debt servicing than on health or education.
The Forum aims to move beyond dialogue: it will promote more transparent borrowing, advance “pause-clauses” or SDG-linked debt swaps, and establish stronger coordination between borrowers and creditors so that debt doesn’t block development.
For India and other fast-growing economies, the Forum offers three simple takeaways:
Borrow wisely — make sure debt doesn’t crowd out spending on health, education, and jobs.
Shape the rules — India can help set fair global standards for how borrowing and repayment work.
Use smarter tools — such as debt pauses during disasters or swapping debt for development goals.
As India continues to invest in infrastructure, people, and climate resilience, the message is clear: borrowing should support long-term progress, not short-term pressure.
Relevant Question for Policy Stakeholders:
Can India use the Forum to champion South-South cooperation and fairer norms that protect development priorities across the Global South?
Follow the full news here: UNCTAD Launches Sevilla Forum To Reform Sovereign-Debt Practices
