A UN report reveals that developing countries’ debt service payments rose to $921 billion in 2024, up $74 billion, highlighting a crisis impacting 3.4 billion people, announced by UN officials on Friday
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The report, titled Confronting the Debt Crisis: 11 Actions to Unlock Sustainable Financing, was launched by UN Deputy Secretary-General Amina Mohammed, alongside experts Mahmoud Mohieldin, Paolo Gentiloni, and UNCTAD Head Rebeca Grynspan. It describes a “silent crisis” driven by soaring debt servicing costs, which have doubled over the past decade. The launch occurred ahead of the Fourth International Conference on Financing for Development in Seville.
The report notes that over two-thirds of low-income countries face debt distress or high risk, with 3.4 billion people living in nations prioritizing interest payments over health or education. This marks a 100 million increase from last year. Grynspan emphasized the crisis’s rapid acceleration, while Gentiloni attributed it to rising debt servicing costs, which strain national budgets and hinder development.
To address the crisis, the report proposes 11 actionable steps, focusing on debt relief and prevention of future crises. These include injecting liquidity through repurposed funds, establishin⅚hbbng borrower-creditor platforms, and strengthening national institutions. Mohieldin highlighted the need for multilateral support for low-income countries and improved policy coordination to manage interest rates and risks effectively.
Grynspan stressed that the solutions are both technically feasible and politically viable, requiring only the collective will to implement. The report aligns with the Compromiso de Sevilla, the outcome document of the upcoming financing conference, aiming to chart a sustainable path forward for global development amidst escalating debt challenges.
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