The Borrowers Platform’s objectives (1)
We need to fix the system that makes it two to three times more expensive for developing countries to finance education, health or what the system is.
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We need to fix the system that makes it two to three times more expensive for developing countries to finance education, health or what the system is.
We live with a deeply unfair international economic and financial ecosystem and a deeply unfair international financial architecture.
And it is unfair. Because of a question of power. And obviously those that have dominated the international financial system have not been very, I would say, supportive of the changes that are necessary to make it equitable and to make it adaptable to the needs of the world as a whole. And power, I learned as a politician, is very difficult to see being given.
Power normally needs to be taken. I believe the creation of the Borrowers Platform is an essential instrument in order for a change in power relations to be possible in the future, and that changing power relations is absolutely essential to have a fair international financial architecture and a much more equitable echo of the international financial and economic ecosystem.
Creditors have long had dedicated spaces to coordinate — The Paris Club, the London Club, the Institute of International Finance and other regular consultation mechanisms. But borrowers have had no equivalent. When debt crises hit, they do not have a proven playbook to draw on. They often lack the technical capacity or the institutional memory that the other side of the table takes for granted.
At times, borrowers are left out of the discussion altogether. I will never forget the words of one African President describing the restructuring of his country’s debt in the context of the G20 initiative. All stakeholders were present at the negotiating table except the country itself.
The costs of these gaps are significant. Many countries are trapped in cycles of unresolved debt crisis. Many more are held back by vast debt repayments that drain public resources and undermine long term investments.
Over the past decades, developing countries have paid, on average, more than twice the interest rates faced by advanced economies. For African economies, the premium reaches 3 times benchmark rates. This leaves developing countries at a distinct disadvantage in assessing the financing they need, which is another clear example of inequality lurking at the heart of the global financial architecture. We need to fix the system that makes it two to three times more expensive for developing countries to finance education, health or what the system is.
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Meanwhile, since 2014, interest payments on government debt in developing countries have more than doubled. Today, 3.4 billion people live in countries that spend more servicing debt than health or education. Developing countries are forced to climb the development ladder with one hand tied behind their backs. These pressures are intensifying.
The war in the Middle East is sending shockwaves through the global economy. Rising fuel and raw material costs are tightening fiscal space. Transportation systems and supply chains are strained. Growth is slowing and borrowing costs are climbing, even higher, especially for the most vulnerable.
The new Platform aims to give developing countries a place to come together around four shared objectives.
First — to accelerate learning.
Today’s global economy includes a dizzying choice of creditors and credit instruments. Navigating those choices requires most technical expertise and experience. The imperative is heightened during episodes of debt distress, when countries contemplate debt restructuring, but typically do so without access to the full knowledge of what the process will entail. It is no wonder that the G20 Common Framework has completed restructuring for just three countries in the past 40 years.
Countries require assistance to find out what works and what does not. How different creditor classes should be engaged. How to structure proposals. And how to navigate complex and technical sovereign debt instruments, including debt swaps.
(To be continued)
(Excerpts of United Nations Secretary‑General António Guterres’s remarks on the launch of the Borrowers’ Platform in Washington D.C. United States, on 15 April 2026.)
