G7 Pledges Debt Relief Push for Developing Nations as Aid Falls 23.1%
Updated
Updated · Reuters · Jun 16
G7 Pledges Debt Relief Push for Developing Nations as Aid Falls 23.1%
3 articles · Updated · Reuters · Jun 16
Summary
G7 leaders said they will step up efforts to tackle rising debt burdens in developing countries, extending attention to vulnerable middle-income states excluded from the G20 Common Framework.
The Evian declaration framed the move as a response to debt strains that are squeezing fiscal space for basic services, while urging reforms, stronger domestic revenues and more private investment.
OECD data showed official development assistance fell 23.1% in real terms in 2025 to $174.3 billion, including a nearly 57% U.S. drop, reinforcing the G7 view that public funds alone are insufficient.
Analysts called the statement the G7's first formal recognition of debt risks beyond the poorest countries, but critics including Oxfam said shifting toward private capital cannot replace aid and demanded a return to the 0.7% GNI target.
The pledge builds on the summit's broader push for coordinated investment partnerships, while highlighting pressure on the G7 to offer faster liquidity support as Middle East conflict raises costs for energy-importing economies.