Meeting for the first time as a governing council on Monday in Bangkok, the Borrowers' Platform gathered officials including finance ministers and central bank chiefs representing over 30 developing nations. The gathering took place in parallel with the IMF and World Bank's yearly meetings in Thailand's capital, where the size and strain of global debt took center stage.
Members selected Pakistan to chair the platform. Speaking to reporters, Pakistan's finance minister, Muhammad Aurangzeb, said the effort is designed so countries can learn from one another. "It's about mutual learning, technical cooperation with each other," he said, adding, "This is more about proactive engagement - how we avoid the pitfalls."
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Participants are navigating mounting pressures, including spillovers from the Iran war and the bite of higher global yields beyond advanced economies. IMF Managing Director Kristalina Georgieva described developed nations as the world's "worst offenders" on debt, but United Nations Secretary-General António Guterres flagged a broader squeeze from wars, trade and climate strains, inadequate financing, and high debt-service costs. "Developing countries face a perfect storm," he said. "The Borrowers Platform offers members an opportunity to navigate this."
A UN Development Programme report published at the weekend concluded that the median developing country currently directs about 9.5% of government revenue to interest payments alone, the highest share since 2001. If that kind of debt service keeps climbing, it can crowd out growth-friendly spending and ripple through trade, inflation, and currency moves that households ultimately feel in prices and job markets.
Collective bargaining over debt terms is a meaningful shift. Get the free Market Briefs daily newsletter and follow it.
