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.

UNCTAD, which described the platform as a ‘major step’ toward rebalancing the global financial system, and serving as the secretariat for the first-ever initiative, announced this yesterday in Washington, D.C.

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

United Nations Secretary-General António Guterres described the initiative as “a breakthrough in global financing… a platform in which borrowing countries sit together, learn from each other, and speak with a collective voice.”

UNCTAD is a leading authority on developing country debt, combining independent analysis with direct support for countries in managing their debt through the Debt Management Programme, which is now running in 60 countries.

The launch came against a backdrop of mounting debt challenges across the developing world.

According to UNCTAD, external debt reached $11.7 trillion in 2024, while debt service costs rose to approximately $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.