Developing countries have taken a major step toward reshaping the global financial system with the launch of the first-ever Borrowers’ Platform at the IMF–World Bank Spring Meetings, with United Nations Conference on Trade and Development serving as its secretariat.

The initiative brings together finance ministers and central bank governors from developing nations to strengthen debt management capacity, enhance coordination, and amplify their collective voice in global debt negotiations.

Describing the move as a milestone, António Guterres said it represents “a breakthrough in global financing… a platform in which borrowing countries sit together, learn from each other, and speak with a collective voice.”

UNCTAD, which will act as the platform’s secretariat, is widely recognised for its expertise in developing country debt and currently supports over 60 nations through its debt management programmes.

Rising debt pressures drive urgency

The launch comes amid mounting debt challenges across the developing world. External debt reached approximately $11.7 trillion in 2024, while debt servicing costs climbed to about $920 billion.

According to available data, 54 countries—home to about 3.4 billion people—now spend more on debt servicing than on health or education, underscoring the scale of the crisis and its impact on development priorities.

These pressures have constrained public investment, limiting the ability of affected countries to fund growth, build resilience, and achieve sustainable development goals.

Addressing gaps in global financial architecture

While mechanisms for creditor coordination have long existed, borrowing nations have lacked a formal platform to share experiences, exchange information, and build technical capacity.

The Borrowers’ Platform aims to bridge this gap. First proposed under the Fourth International Conference on Financing for Development, the initiative creates a permanent framework for collaboration among developing countries.

Through peer learning, technical support, and knowledge-sharing, it is expected to strengthen debt management practices and improve coordination on sovereign debt issues.

Strong backing from developing nations

The launch drew participation from representatives of 30 countries, including prime ministers, 16 ministers, and several central bank governors, reflecting strong political support.

Countries from different regions and economic sizes were represented, including major economies such as India and South Africa, as well as smaller and more vulnerable states like Maldives.

The platform will be led by a working group chaired by Egypt, with Pakistan serving as vice-chair, alongside members including Colombia, Honduras, Nepal, and Zambia.

Member states agreed to expand participation, establish interim governance structures, and develop a work programme ahead of the IMF–World Bank Annual Meetings scheduled for October 2026.

Analysts say the initiative could improve transparency, strengthen debt management capacity, and foster cooperation among borrowing nations, while also boosting investor confidence and supporting more sustainable financing outcomes over time. (The Nation)