Only Nine Nations Back Debt Platform for Developing Countries

Only nine countries have so far endorsed the Borrowers' Platform, a new initiative designed to give developing nations a stronger collective voice in sovereign debt negotiations. A senior United Nations official revealed that the endorsing nations include five from Africa, the Central African Republic, Egypt, Ghana, Madagascar, and Sudan, along with Colombia, Honduras, Nepal, and Pakistan. Egypt is serving as the platform's interim chair, with Pakistan as vice-chair.

Penelope Hawkins, Officer-in-Charge of the Debt and Development Finance Branch of the United Nations Trade and Development (UNCTAD), announced the endorsement figures at the sixth African Conference on Debt and Development in Nairobi. She urged civil society organizations across Africa to press their governments for reasons why they have not yet joined the platform. "Civil society must be asking your governments, are you joining the Borrowers' Platform? Why are you not joining the Borrowers' Platform? What is it there that is holding you back?" she stated.

The Borrowers' Platform was launched in April during the IMF-World Bank Spring Meetings, with UNCTAD providing its secretariat. Its primary goal is to assist borrowing countries in enhancing debt management, sharing expertise, and coordinating their stances in global debt discussions. Hawkins noted that the platform was established due to the limited influence developing countries have historically held over the international financial system, despite being significantly impacted by its decisions.

She pointed out that this imbalance persists within institutions like the World Bank and International Monetary Fund, where changes in representation have not fundamentally altered voting power. African debt managers have expressed interest in contributing their technical expertise to the platform and aligning it with the Common African Position on Debt (CAP). The CAP, adopted by African leaders in February, serves as a continental framework for addressing debt sustainability, restructuring, and global financial system reforms. However, speakers emphasized that turning this political agreement into concrete action that influences borrowing and creditor negotiations remains the key challenge.

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Civil society must be asking your governments, are you joining the Borrowers' Platform? Why are you not joining the Borrowers' Platform? What is it there that is holding you back?