Developing countries are seeking greater influence in global debt negotiations with the launch of a new country-led Borrowers’ Platform during the IMF-World Bank Spring Meetings. The initiative comes as the economic fallout from the escalating Middle East conflict, linked to tensions involving Iran, continues to disrupt economies far beyond the region.
Rising oil prices triggered by the conflict are driving up the cost of food and essential goods, placing significant strain on import-dependent nations, including those in the Caribbean and Pacific islands. According to analysis by the United Nations, the ongoing military escalation could push more than 30 million people into poverty globally, reversing years of development progress.
The newly launched Borrowers’ Platform, supported by the United Nations Conference on Trade and Development, aims to address long-standing imbalances in global debt systems. Over the past decade, developing countries have faced sharply rising debt repayment costs, with the least developed nations now allocating nearly a quarter of their revenues to external creditors. Currently, 54 countries—home to 3.4 billion people—spend more on debt servicing than on critical sectors like health and education, while total external debt reached $11.7 trillion in 2024.
Speaking at the launch event in Washington, DC, António Guterres described the platform as a “breakthrough in global financing.” He compared it to established creditor groups such as the Paris Club, London Club, and the Institute of International Finance, noting that borrower nations have historically had limited representation in debt discussions.
Guterres highlighted that developing countries often face borrowing costs more than twice as high as those of advanced economies, underscoring deep inequalities within the global financial system. He emphasized that the new platform will enable countries to share expertise on debt restructuring, strengthen their negotiating power with creditors, and potentially reduce borrowing costs by sending stronger market signals.
Amid rising fuel prices, supply chain disruptions, and slowing economic growth linked to the Middle East conflict, the Borrowers’ Platform is expected to help developing nations better manage mounting financial pressures and play a more central role in shaping global financial governance.
