UNCTAD16 opens in Geneva – Day 02.

Sevilla Forum on Debt launched at UNCTAD16 to tackle the entrenched debt crisis in developing countries. The forum, supported by UNCTAD and UN DESA, marks a breakthrough in efforts to help developing countries tackle debt challenges.

Today (22nd October, 2025) UN Secretary-General António Guterres, Minister of Economy, Trade and Business of Spain Carlos Cuerpo, the Secretary-General of UN Trade and Development (UNCTAD), Rebeca Grynspan and the Under-Secretary-General for Economic and Social Affairs, Li Junhua, has announced the creation of the Sevilla Forum on Debt, during the 16th United Nations Conference on Trade and Development (UNCTAD16), taking place in Geneva from 20 to 23 October 2025.

The new forum is one of the outcomes of the Fourth International Conference on Financing for Development (FfD4) and was launched as an initiative under the Sevilla Platform for Action. These initiatives will complement the Sevilla Commitment, the outcome adopted at the Conference that sets out a roadmap to strengthen development financing.

The Sevilla Forum is a Spanish-led initiative, supported by UNCTAD and UN DESA, to create an open, inclusive platform for dialogue and action on global debt challenges.

At the launch, UN Secretary-General António Guterres said: “This Forum will bring together all partners including developed and developing countries alike, and finance ministers and creditors in a global dialogue on debt. It will sustain political attention on the agreements on debt reached in Sevilla, while developing technical pathways to bring them to life. This includes taking forward the commitment to consolidate and uphold principles on responsible borrowing and lending, and gathering new ideas to advance debt architecture reform, which is long overdue“.

The UN Secretary-General reiterated his call for fast, fair and development-focused debt solutions and underscored the importance of UN system-wide support to advance the commitments made under the Sevilla Commitment and initiatives of the Sevilla Platform for Action.

Spain’s Minister of Economy, Trade and Business, Carlos Cuerpo, said “the forum could serve as a vital bridge between borrowers and creditors and a hub for candid discussion on initiatives to help overcome the mounting debt challenge. It will also play a key role in tracking the implementation of the debt initiatives agreed upon in Sevilla”. Spain will host and support the forum, working with the UN to advance consultations on its structure and next steps.

The launch of the Sevilla Forum stands out as one of FFD4’s first tangible outcomes, turning the political commitments of the Sevilla Commitment into an institutional mechanism to advance fairer and more predictable debt governance.  As part of its steadfast commitment to multilateralism, Spain led other crucial initiatives to ease the debt burden of vulnerable economies and expand their access to development financing. These efforts include the launch of the Debt Pause Clause Alliance, which promotes the suspension of debt payments for countries facing crises, and the establishment of the Global Hub for Debt Swaps.

The United Nations, through UNCTAD and UN DESA, has put forward research on sovereign debt challenges and solutions, with UNCTAD long supporting developing countries in managing debt crises. The UN Secretary-General has highlighted the need for comprehensive reform of the global debt architecture. In 2024, global public debt reached $102 trillion, which is the highest on record. Developing countries account for $31 trillion and paid $921 billion in interest payments alone last year.

UNCTAD warns that 3.4 billion people live in countries spending more on debt servicing than on health or education. The debt burden is pushing many developing economies into untenable positions, requiring urgent and systemic responses.

UNCTAD Secretary-General Rebeca Grynspan underlined: “The Seville Forum will allow a substantive dialogue between all parties, borrowers and lenders, academia civil society, international organisations and experts, to share knowledge, promote coordination, and develop innovative solutions to debt problems. We are pleased that this initiative is being announced during UNCTAD 16, since it represents a real breakthrough in supporting developing countries to tackle debt challenges. UNCTAD is fully committed to facilitating this process, ensuring that it leads to real, impactful outcomes for the country’s most in need”.

The Sevilla Forum on Debt is a pivotal step in translating political commitments into concrete actions. By bringing together all stakeholders, it aims to foster the necessary collaboration to agree on practical, sustainable debt solutions. The launch of the Sevilla Forum on Debt at UNCTAD16 demonstrates that the multilateral system can deliver real outcomes linking global finance reform to the development priorities of billions of people.

UN DESA Under-Secretary General Li Junhua said: “The Sevilla Commitment marked a pivotal moment in our efforts to build a fairer, more development-oriented debt architecture. The ultimate test, however, lies in implementing the full package of debt actions. This is where the Sevilla Forum on Debt can be our catalyst for action. As a platform for inclusive dialogue, the Forum can help build political momentum and convergence around key actions”.

Team Maverick