Thu. Mar 27th, 2025

Global debt at a crossroads: 14th International Debt Management Conference

Mar 14, 2025 , , ,

Geneva, 14 March 2025

The conference will explore the drivers of the current debt-driven development crisis, and how to improve resilience and risk management amid growing global uncertainties.Governments are grappling with soaring debt costs that are squeezing public finances and stalling development.As the world heads toward the 4th International Conference on Financing for Development (FfD4), UN Trade and Development’s (UNCTAD) biennial debt conference will set the stage for urgent solutions.The 14th International Debt Management Conference, set for 17 to 19 March in Geneva, will be a platform to discuss and share experiences on critical developments and challenges facing developing countries, when it comes to managing public debt in the current global economic context.It will gather governments, senior debt managers, academia, businesses, civil society and international organizations, to tackle one of the biggest economic challenges of our time: how to manage public debt without stalling development.

Following the event, UN Trade and Development’s Debt Management and Financial Analysis System (DMFAS) advisory group will meet to review capacity-building efforts and set strategic priorities for debt management worldwide.

DMFAS has been a key player in this space for over 45 years, helping more than 75 governments develop sound debt management systems to improve transparency, governance, and economic stability.

Here’s what to watch for at the conference.

Why does this conference matter?

The conference will highlight strategies to prevent debt distress while ensuring sustainable development.

While public debt is a critical tool for development, rising debt-service costs are straining government budgets, leaving little room for essential investments.

Today, many developing countries are sinking into a debt-driven development crisis, with their external debt hitting a record $11.4 trillion in 2023 – 99% of their export earnings.

Developing countries’ external debt hit $11.4 trillion in 2023 – 99% of their export earnings

Graph - Developing countries' external debt hit $11.4 trillion in 2023 – 99% of their export earnings
Developing countries’ external debt hit $11.4 trillion in 2023 – 99% of their export earnings. Source: UNCTAD
The conference will analyze the key drivers behind today’s debt crisis and explore ways to strengthen resilience and risk management. It will also help shape the global agenda on financing for development – of which debt is a critical element – ahead of the UN-led FfD4 conference in mid-2025.

The current debt crisis: What’s at stake?

Since 2017, debt sustainability in developing nations has worsened as interest payments outpace government revenues. More than half of the 68 countries eligible for the IMF’s Poverty Reduction and Growth Trust now face debt distress – twice as many as in 2015.

Global shocks – from COVID-19 and geopolitical tensions to the cost-of-living crisis and climate disasters – have further weakened public finances. Currently, some 3.3 billion people live in countries that spend more on debt payments than on education or health.

As a result, while countries may not be defaulting on their debt, they are defaulting on their development.

What new solutions will emerge?

One major highlight will be the launch of DMFAS 7, the latest version of UN Trade and Development’s cutting-edge debt management software.

The upgraded system offers advanced tools for debt recording, monitoring, and reporting, with stronger security, broader data coverage, and a redesigned user-friendly interface.

This new version seeks to enable more efficient, transparent and reliable processes, helping ensure that governments can manage debt effectively without compromising their development goals.

So far, the DMFAS software is live in over 80 institutions across 60 countries.

Source – UNCTAD

 

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