UN Report Highlights Urgent Need to Address Global Debt Crisis
UN Report Highlights Urgent Need to Address Global Debt Crisis
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A new UN report, Confronting the Debt Crisis: 11 Actions to Unlock Sustainable Financing, was launched on Friday, June 27, by Deputy Secretary-General Amina Mohammed, UN website reported. The report warns of a “silent crisis” as over two-thirds of low-income countries face debt distress or high risk, threatening global development efforts.
More than 3.4 billion people now live in countries spending more on debt interest than on health or education—an increase of 100 million from last year. Debt service payments by developing nations surged by $74 billion in one year, reaching $921 billion.
Experts Mahmoud Mohieldin, Paolo Gentiloni, and Rebeca Grynspan emphasized that rising debt servicing costs, which have doubled in the past decade, are at the heart of the crisis. The report proposes 11 actionable steps focused on meaningful debt relief and crisis prevention.
Key recommendations include repurposing multilateral funds, creating platforms for borrower-creditor dialogue, and strengthening national institutions. Grynspan stressed these solutions require political will to be realized effectively.
