New ‘borrowers’ platform’ could help countries cooperate in resolving debt crisis
17 April 2026 - VATICAN - Finance ministers and representatives from 30 low- and middle-income countries have launched a new forum for countries to work together on overcoming unsustainable foreign debts that are preventing millions from accessing basic public services.
The forum, described as a ‘Borrowers’ Platform’, was announced on 15 April during the World Bank and International Monetary Fund Spring Meetings in Washington, DC. The platform will provide a formal space for nations facing unsustainable debt to share technical expertise, advice and coordinate strategies.
Groups campaigning to reform the global debt system hope the new platform will give governments in countries with high levels of sovereign debt better information for their negotiations with foreign creditors.
Platform will 'fill gap' in global debt system
Lower-income countries spent over 18 per cent of government revenue on servicing public debts in 2024, according to the United Nations Conference on Trade and Development (UNCTAD), which will serve as secretariat for the platform. 46 countries spent more on interest payments than on health or education in 2025.
UNCTAD states that the Borrowers’ Platform will “fill a gap” in the architecture governing global finance and debts owed by countries.
This will help countries contending with unsustainable debt levels to “amplify their collective voice” and “engage more effectively” in global financial and debt discussions.
'Important first step’ to address global debt crisis
Alfonso Apicella, Senior Officer for Global Advocacy and Campaigns at Caritas Internationalis, said:
“No child should miss out on school and no family should lack medical treatments because their government is forced to pay huge foreign debts rather than invest in basic public services. Yet this is now the daily reality for millions of people nearly 50 countries worldwide.
“That’s why the Borrowers’ Platform could be an important first step to ensuring countries in debt distress are in a stronger position to reduce what Pope Francis referred to as ‘unjust and unpayable debts’ when they enter negotiations with private creditors.
“This initiative holds real promise as a concrete expression of the more synodal, fraternal spirit of collaboration needed to tackle complex challenges, such as sovereign debt and an international financial architecture that is increasingly out of step with the realities of our time.”
Mena Antonio, Vice President of Caritas Internationalis and CE of Caritas Aotearoa New Zealand also welcomed the platform and pointed out that the consequences of the debt crisis are especially severe for small island nations.
“We in Oceania welcome this sign of solidarity between nations that bear the brunt of an unjust global economic system.
“More than three quarters of the Pacific’s sovereign independent nations are at high or moderate risk of debt distress. Some spend more on paying their debts than on health or education.”
Mena Antonio said those risks were intensifying due to climate change, extreme weather and global shocks.
“That risk is being made worse by long-term climate change and increasingly severe weather events, as well as global shocks such as the current war-induced energy crisis.
“Small nations in our Ocean of Peace are being made to pay the price of evils inflicted half a world away. Countries of the South need to support each other, and rich countries and those who control our economic system need to change the rules to ensure the global economy works for the good of all.”
Platform ‘strengthens collective voice of debtor nations’
Father McDonald Nah, National Director of the National Commission of Catholic Justice, Peace and Caritas in Liberia, said:
“Sovereign debt is not merely a matter of national accounting; in Liberia, it is a daily reality that shapes the dignity and well-being of our people.
“The burden of debt servicing continues to limit the government’s ability to invest in essential services such as sustainable access to running water, reliable electricity, and critically needed medical equipment for our hospitals. In many communities, this translates into families struggling for clean water, health facilities operating below standard, and entire regions left without the infrastructure necessary for human flourishing.
“Moreover, the weight of debt discourages the level of investment required to stimulate industrial growth and create meaningful employment for our young people. The absence of factories and large-scale enterprises contributes to rising youth unemployment, which remains a serious national and social challenge.
“In this regard, the Borrowers’ Platform offers a hopeful and practical path forward. By strengthening the collective voice of debtor nations, promoting fairness in debt restructuring, and advocating for responsible lending, it can help create the fiscal space needed for countries like Liberia to invest in their people and build a more just and sustainable future.”
Jayasiri Premaratne, Programme Manager at Caritas Sri Lanka, said:
“Sri Lanka’s recent economic crisis illustrates how sovereign debt can deeply affect everyday life, especially for vulnerable communities. Years of heavy borrowing, combined with external shocks, led to a severe debt crisis that limited the government’s ability to finance essential services. As a result, people across the country faced rising living costs, reduced access to healthcare and cuts to social protection programs. In rural and plantation communities, these impacts were even more visible, with increased poverty, food insecurity, and limited livelihood opportunities. The burden of debt repayment often forces governments to prioritize fiscal consolidation over public welfare, placing disproportionate pressure on low-income households.
“The Borrowers’ Platform emerges as a promising step toward addressing such challenges at a global level. It aims to bring together debtor countries to collectively negotiate fairer terms with creditors and advocate for more transparent and equitable debt restructuring processes.
“Moreover, the platform encourages accountability and shared learning among nations facing similar crises. This can lead to more sustainable debt management practices that protect vulnerable populations. In this context, the Borrowers’ Platform is not just a financial mechanism but a pathway toward greater economic justice, ensuring that debt solutions do not come at the expense of people’s well-being and dignity.”
‘Further reforms needed' to tackle debt crisis
While welcoming the Borrowers’ Platform, Caritas warned that deeper reforms were still required.
Alfonso Apicella added:
“The Borrowers’ Platform will begin to address the imbalance of power between countries facing a debt crisis and the rich banks and hedge funds who feel they can charge huge interest rates for their loans and hold out for payment – even when an emergency such as the pandemic or a climate catastrophe strikes.
“But political and financial leaders can’t stop here. We need further reforms before we have a financial system that helps to improve prosperity and security for all, rather than leaving the poorest communities to pick up the bill.
“That includes being open about the loans that creditors give to low- and middle-income countries so that people can see what debts are being taken on in their names. It also means having rules that require all creditors to join debt negotiations when others have already agreed to do – so that no country is ever forced to make a choice between paying huge interest charges or paying to run schools and hospitals.”