Sevilla Forum on Debt Launched to Address Global Sovereign Debt Crisis

The Sevilla Forum on Debt, a new international platform to tackle mounting global debt challenges, was launched on 22 October 2025 during the 16th UN Conference on Trade and Development (UNCTAD16) in Geneva. The Spanish-led initiative, supported by UNCTAD and the UN Department of Economic and Social Affairs (DESA), aims to promote open dialogue and action on sovereign debt reform. It represents one of the key outcomes of the Fourth International Conference on Financing for Development (FfD4) held earlier this year.

Purpose and Objectives

The Forum will serve as a permanent platform to strengthen cooperation between borrowers and creditors, advance responsible borrowing and lending practices, and reform the global debt architecture. UN Secretary-General António Guterres stated that it will sustain attention on the “Sevilla agreements” and develop practical pathways to implement them. The Forum is part of the broader Sevilla Platform for Action and complements the Sevilla Commitment, which outlines reforms to improve debt sustainability and development financing.

Spain’s Hosting Role

Spain will host and finance the Forum. Minister of Economy Carlos Cuerpo described it as “a bridge between borrowers and creditors” to track implementation of global debt initiatives. Spain’s recent initiatives include the Debt Pause Clause Alliance, promoting temporary suspension of debt payments for countries in crisis, and the Global Hub for Debt Swaps supporting environment-linked debt relief programmes.

Rising Global Debt Burden

According to UNCTAD, global public debt reached $102 trillion in 2024, with developing countries holding $31 trillion and paying $921 billion in interest. Around 3.4 billion people now live in countries that spend more on debt servicing than on health or education. The Forum aims to enable regular dialogue among governments, creditors, and experts to find fairer and more predictable solutions to this crisis.

Exam Oriented Facts

• Launched on 22 October 2025 at UNCTAD16 in Geneva.
• Led by Spain, supported by UNCTAD and UN DESA.
• Part of the Sevilla Platform for Action and Sevilla Commitment.
• Global public debt: $102 trillion; developing countries owe $31 trillion.
• 3.4 billion people live in nations spending more on debt than on social services.

Framework for Global Financial Reform

UN DESA’s Li Junhua noted that the Forum will help operationalise the Sevilla Commitment by turning political consensus into coordinated global action. UNCTAD Secretary-General Rebeca Grynspan called it a “breakthrough” for developing economies. The Sevilla Forum aims to foster transparency, predictability, and fairness in international debt management while supporting the UN Sustainable Development Goals.