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UN Secretary-General Antonio Guterres on Thursday took to social media platform X to announce the launch of The Borrowers Platform, a UN-supported mechanism launched this week that is a dedicated space for developing countries that are borrowers to come together, share knowledge, exchange experiences and speak collectively on debt issues and dealing with creditors.
Speaking at the launch, UN Secretary-General Antonio Guterres called it "a historic meeting" and "a breakthrough in global financing." He added, "We live with a deeply unfair international economic and financial ecosystem and a deeply unfair international financial architecture." The problem, he said, is power. "Those that have dominated the international financial system have not been very supportive of the changes that are necessary to make it equitable." The platform flips that dynamic. For years, creditors have had the Paris Club, London Club, and the Institute of International Finance to coordinate positions. Borrowers had nothing. Guterres recalled the words of one African president whose country went through restructuring under the G20 initiative: "All stakeholders were present at the negotiating table except the country itself." The cost of that gap is steep. "Many countries are trapped in cycles of unresolved debt crises and held back by an unfair system of vast debt repayments that drain public resources and undermine long-term investment," Guterres said. Developing countries pay, on average, more than twice the interest rates faced by advanced economies. For African economies, the premium hits three times the benchmark rates. Interest payments on government debt in developing countries have more than doubled since 2014. Today, 3.4 billion people live in countries that spend more on servicing debt than on health or education. "Developing countries are forced to climb the development ladder with one hand tied behind their backs," Guterres noted. The Borrowers Platform is built around four goals. First, accelerate learning. With a "dizzying choice of creditors and credit instruments," countries often enter restructuring without knowing what works. The G20 Common Framework has completed deals for just three countries in 40 years. The platform creates a permanent space for peer exchange so members "enter negotiations armed with information and experiences gained from countries that traveled a similar path." Second, give borrowers tools to engage as equals. "When both sides of the table are well informed and well prepared, negotiations move faster and the agreements take shape," Guterres said. Third, send a clear market signal. "Better debt management, better data and better transparency directly affect how markets perceive risk," which can lower borrowing costs and create fiscal space for development. Fourth, give borrowing countries a collective voice. "It is another step toward the global debt system that places borrowers at the center of discussions that determine their futures and ensure their perspectives are coordinated, informed and heard." The initiative is led by a working group chaired by Egypt and vice-chaired by Pakistan, with representatives from Colombia, Honduras, Maldives, Nepal and Zambia as the initial group. UNCTAD will serve as the secretariat. Guterres also acknowledged Spain's support through last year's Sevilla Commitment on financing for development. The Borrowers Platform, he added, "cannot generate solutions that allow countries to invest in these fundamentals and to do so on fairer, more sustainable terms." He urged all eligible countries to join, offering full UN support as the platform "moves from the launchpad to take-off." (ANI)
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