Global debt service payments by developing countries rose sharply in 2024, reaching a staggering $921 billion—an increase of $74 billion from the previous year.
This surge has cast a dark shadow over global development efforts and is now described by the United Nations as a “silent crisis.”
The troubling revelation was contained in a new UN report titled Confronting the Debt Crisis: 11 Actions to Unlock Sustainable Financing, launched by Deputy Secretary-General Amina Mohammed in New York on Friday.
She was joined by economic experts Mahmoud Mohieldin and Paolo Gentiloni, alongside Rebeca Grynspan, the head of the UN Conference on Trade and Development (UNCTAD).
Over Two-Thirds of Poor Countries Near Collapse
Mohammed warned that despite a full decade since the launch of the Sustainable Development Goals (SDGs), development has stalled for many nations.
“Borrowing is critical for development,” she said. “But borrowing is not working for many developing countries. Over two-thirds of our low-income countries are either in debt distress or at a high risk of it.”
Gentiloni added more context, explaining that debt servicing costs had “practically doubled in the last ten years.” This relentless burden has trapped developing economies in a cycle of repayment, unable to channel resources into key services.
Grynspan warned that the crisis was worsening quickly, with more than 3.4 billion people now living in countries that spend more on debt interest than on healthcare or education. That figure has grown by 100 million in just one year.
The UN is urging urgent political action to stop the bleeding and realign global finance with human development.
Eleven Steps to Break the Cycle
The 2024 report builds on the Compromiso de Sevilla, the outcome document of the Fourth International Conference on Financing for Development scheduled for next week.
According to Mohieldin, the report lays out 11 “doable” actions under two main goals: providing meaningful debt relief and preventing future crises.
At the multilateral level, the report calls for fresh funding injections, especially targeted at low-income countries. It recommends repurposing and replenishing existing funds to boost liquidity.
Another recommendation is to create a new platform for debtor and creditor engagement. This forum, backed by international cooperation, would give struggling nations a stronger voice in shaping debt terms.
At the national level, the UN urges countries to strengthen their policy coordination, improve institutional capacity, manage interest rate exposures, and reinforce risk management systems.
Political Will, Not Just Economics
The experts insist that what stands between these solutions and reality is not technical complexity—but political commitment.
“These are eleven proposals that are doable and that only need the political will of all the actors to be able to make them real,” Grynspan said.
The UN hopes that this new push will ignite urgent conversations and fast-track reforms before another wave of defaults crushes fragile economies.
If these recommendations are ignored, the debt burden will continue to deepen inequality, weaken public services, and derail hopes of achieving the SDGs.
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