Source: United Nations (video statements)
Hybrid press briefing by the Deputy Secretary-General Amina J. Mohammed, who will be joined virtually by Rebeca Grynspan, Secretary-General of UN Trade and Development (UNCTAD), and the Secretary-General’s Expert Group on Debt. They will brief reporters on the launch of the Secretary-General’s debt recommendations, ahead of the 4th International Conference on Financing for Development (FFD4).
“The debt crisis is a silent crisis,” UN Deputy Secretary-General Amina Mohammed warned, as the United Nations unveiled new recommendations aimed at tackling the deepening financial burden facing developing countries.
Speaking to reporters today (27Jun), Mohammed said, “Ten years after countries adopted the SDGs, development, of course, faces many headwinds,” she said, citing “slowing global growth, the threat of trade war and repeated global shocks and climate and conflict.” But she stressed, “the most unsettling challenge for many developing countries is a debt crisis.”
While borrowing remains essential for development, Mohammed noted, “Today, borrowing is not working for many developing countries. Over two thirds of our low-income countries are either in debt distress or at a higher risk of it.”
The human cost is mounting. “3.4 billion people live in countries that spend more on interest payments than on health or on education,” she added.
Mohammed described the debt crisis as “silent” for two reasons, “First, the crisis doesn’t impact the lives or economies of those in advanced economies… But second – among global policy makers, there’s a striking reluctance to allow or acknowledge the crisis for what it is.”
In response, the Secretary-General last December appointed an expert group to chart a way forward. “Today we publish their recommendations,” Mohammed announced. “The report makes the case that an end to the debt crisis is entirely feasible if opportunities are seized.”
The proposed actions, she emphasized, are “not only moonshots, but politically and technically viable,” offering both short-term relief and long-term access to affordable financing.