Paris Finance Summit: Guterres calls global financial architecture ‘outdated and unjust’

WhatsAppWhatsAppFacebookFacebookTwitterTwitterPinterestPinterestRedditRedditGmailGmailShareShare

Speaking at the Summit for a New Global Financing Pact in Paris on Thursday, UN Secretary-General Antonio Guterres raised concerns over high debt and exorbitant borrowing costs not allowing developing countries to revive their economies.

Several countries in Africa were spending huge sums on debt repayments that could have otherwise been allocated for desperately needed healthcare, Guterres said, adding more than 50 countries were currently either in default or “dangerously” close to it.

“Doing nothing is simply not an option”

He highlighted the need for a debt relief mechanism that helps poorer nations with payment suspensions, lower rates and longer lending terms – eventually making borrowing more affordable for them.

The UN chief called for an end to fossil fuel subsidies and increased climate adaptation funding for vulnerable countries. Additionally, he also asked for developing countries to have increased access to liquidity via the International Monetary Fund’s Special Drawing Rights.

Keep Reading

“Doing nothing is simply not an option,” Guterres warned delegates to the Paris Finance Summit. He stressed these measures would support global justice – helping beat hunger and poverty, supporting investments in health and education, and uplifting developing economies.

No Solution Without Reform

Clearly, the international financial architecture built in the aftermath of WWII isn’t serving its purpose to provide a safety net for developing countries, the Secretary-General warned. He called the architecture “outdated, dysfunction and unjust”.

Guterres stressed the system is no longer capable of addressing the needs of the 21st-century world – a multipolar world marked by growing systemic risks, geopolitical tensions, and deeply integrated economies and financial markets.

Calling for serious reforms, the UN chief said the ‘outdated’ financial system worsens inequalities, not allowing the poorest countries to access the credit and debt support they need and deserve. He gave the example of Europeans receiving nearly 13 times more than Africans, under current rules for Special Drawing Rights to weather recent crises.

About WR News Writer

WR News Writer is an engineer turned professionally trained writer who has a strong voice in her writing. She speaks on issues of migrant workers, human rights, and more.

WR News Writer

WR News Writer is an engineer turned professionally trained writer who has a strong voice in her writing. She speaks on issues of migrant workers, human rights, and more.

Recent Posts

Bihar Government Hikes DA to 55% for State Employees

In a major financial relief to government staff and pensioners, the Bihar government has sanctioned an increase in Dearness Allowance…

May 17, 2025

Canada’s Skilled Foreign Workers Face Deportation Under Stricter TFW Rules

The skilled foreign workforce in Canada now faces increased uncertainty after new regulations for the TFWP (Temporary Foreign Worker Program)…

May 17, 2025

Infosys, Wipro Boost Median Salaries by 30% Since FY21

India’s largest IT companies, Infosys and Wipro, have seen a significant rise in median employee pay, a rise of 30%…

May 17, 2025

Trump Turns to Supreme Court to Advance Federal Layoff Agenda

President Donald Trump has asked the U.S. Supreme Court to overturn an injunction from a lower court blocking mass systemic…

May 17, 2025

Ontario’s Mega Budget: $232.5B to Shield Jobs, Combat Tariffs and Foster Unity

Ontario is introducing a record setting budget of $232.5 billion focused on protecting jobs within the context of economic uncertainty…

May 16, 2025

West Bengal State Employees to Receive 25% DA Following Supreme Court Verdict

Dearness Allowance is an adjustment for the cost of living for professionals and pensioners employed by the government to allow…

May 16, 2025