Leaders of the Group of Seven (G7) nations on Tuesday pledged to intensify efforts to address rising debt burdens in developing countries, including vulnerable middle-income nations that are not covered by the Group of 20 (G20) debt-relief framework established during the COVID-19 pandemic.
In a joint declaration issued after discussions with guest countries including Kenya, Egypt, India, Brazil and South Korea, G7 leaders reaffirmed their commitment to international development cooperation while calling for reforms and increased private-sector investment.
The leaders acknowledged that traditional aid programmes have supported economic development in many countries but have not done enough to reduce dependence on foreign assistance. They also noted a significant decline in government aid from the United States and other advanced economies in recent years.
Emphasising that public funding alone cannot meet growing global development needs, the G7 called for greater mobilisation of private capital to support sustainable growth and development.
The declaration also endorsed progress towards creating a framework for restructuring debt in vulnerable middle-income countries that are currently outside the G20 Common Framework, a mechanism introduced during the pandemic to help the world’s poorest nations manage unsustainable debt.
The move reflects growing international concern over mounting debt pressures in developing economies and the need for broader solutions to support long-term financial stability and economic resilience.
