Debt Sustainability

Secretary-General Rebeca Grynspan said high borrowing costs stifle growth and drain financial resources, restricting investments in infrastructure, social services, and climate action.

The Summit of the Future is an opportunity to mend eroded trust in multilateralism and create hope for a better tomorrow, says UN Trade and Development chief Rebeca Grynspan.

Amidst a polycrisis, these countries face an increasingly unsustainable financial situation, with high structural deficits and unaffordable debt, underscoring the urgent need for international action.

Ahead of the Summit of the Future, Rebeca Grynspan highlights how debt burdens are crippling developing nations’ abilities to invest in critical services and their people.

In 2022, Official Development Assistance loans rose by 11% to $61 billion, while grants fell by 8% to $109 billion – a shift that could increase developing country debt burdens.

Despite reaching historical levels in 2022, Official Development Assistance decreased by 2% ($4 billion) for developing regions, affecting over 70 countries and almost 3 billion people.

In Brazil, Secretary-General Rebeca Grynspan renews calls for global financial system reforms to ensure a more sustainable and inclusive future for all nations.

UNCTAD and its partners help equip the African nation with the tools and knowledge to better manage its public debt and enhance transparency.

Climate change is compounding the debt crisis in developing countries. UNCTAD spells out the actions necessary to safeguard the world’s sustainable development ambitions.

By UNCTAD Secretary-General Rebeca Grynspan