Debtor nations launch joint platform to collaborate

The initiative was launched in Washington with the support of UNCTAD, whilst the global problem continues to grow, with as many as 54 countries spending more on debt interest payments than on healthcare and education for their citizens. Caritas Internationalis: “An important step towards giving a voice to those in difficulty due to an unjust system. Now, however, transparency and rules are essential.”

Milan (AsiaNews/Agencies) – A forum bringing together representatives from 30 low- and middle-income countries to collaborate on overcoming the problem of unsustainable foreign debt, which prevents millions of citizens from accessing essential public services. The initiative is called the Platform of Debtor Countries; it was promoted by UNCTAD (the UN body dealing with trade and development) and was announced on 15 April during the spring meetings of the World Bank and the International Monetary Fund in Washington.

The initiative comes at a time when the debt issue is taking on increasingly worrying proportions year after year. Despite the appeal launched by Pope Francis on the occasion of the 2025 Jubilee, the problem continues to grow: the latest figures released by UNCTAD show that the external debt of developing countries has reached .7 trillion, with interest costs having risen dramatically over the last decade. In 2024, these countries allocated almost 10% of their public revenue to interest payments to foreign creditors, and as many as 54 countries (home to a population of 3.4 billion people) now spend more on repaying their debt than on healthcare or education.

The platform aims to provide a formal space for countries with unsustainable debt to share technical expertise, advice and coordinate strategies. Led by a working group comprising Egypt (chair) and Pakistan (vice-chair), alongside Colombia, Honduras, the Maldives, Nepal and Zambia, the initiative will now move from the launch phase to the implementation phase. Member states have agreed to broaden participation, establish interim governance arrangements and define a work programme ahead of the International Monetary Fund and World Bank Annual Meetings in October 2026.

The launch of the Debtor Countries Platform has been welcomed by Caritas Internationalis, which has long been campaigning on behalf of the Catholic Church for a fairer system of international financial relations. “No child should be deprived of schooling and no family of medical care because their government is forced to pay off huge foreign debts instead of investing in basic public services,” comments Alfonso Apicella, Head of Advocacy and Global Campaigns, on behalf of the Church organisation. “For this reason, the Debtor Countries Platform can represent an important first step towards strengthening the position of countries in difficulty in reducing what Pope Francis has called ‘unjust and unpayable debts’ in negotiations with private creditors.”

Mena Antonio, Vice-President of Caritas Internationalis and Chief Executive of Caritas Aotearoa New Zealand, also welcomed the platform, emphasising that the consequences of the debt crisis are particularly severe for small island states. “In Oceania, we welcome this sign of solidarity among nations bearing the burden of an unjust global economic system. Over three-quarters of the sovereign states in the Pacific are at high or moderate risk of a debt crisis.” These risks in Oceania are further exacerbated by climate change, extreme weather events and global shocks: “The small nations of our Pacific Ocean of Peace are paying the price for problems generated thousands of kilometres away. Countries of the South must support one another, whilst rich nations and those who control the economic system must change the rules so that the global economy works for the good of all.”

For his part, Jayasiri Premaratne, programme director at Caritas Sri Lanka, notes that “Sri Lanka’s recent economic crisis demonstrates how sovereign debt can profoundly affect daily life, especially for the most vulnerable communities. Years of heavy indebtedness, combined with external shocks, have limited the state’s ability to fund essential services, resulting in a rise in the cost of living, reduced access to healthcare and cuts to social protection. The Debtor Countries Platform represents a promising step towards addressing these challenges at a global level, promoting fairer negotiations with creditors and greater transparency in restructuring processes.”

The Debtor Countries Platform remains, however, only a first step: “Further reforms are needed,” explains Apicella on behalf of Caritas Internationalis, “to build a financial system that promotes prosperity and security for all, without passing the costs on to the poorest communities. It is essential to ensure transparency regarding loans granted to low- and middle-income countries, so that citizens know what debts are being incurred in their name. We also need rules that oblige all creditors to participate in negotiations, preventing governments from being forced to choose between paying high interest rates or funding schools and hospitals.”