Leaders of the G7 pledged on Tuesday to strengthen efforts aimed at addressing the heavy debt burdens weighing on developing countries, including middle-income nations that are not eligible for the broader G20 debt relief initiative launched during the COVID-19 pandemic.

In a joint declaration issued following a session attended by guest countries including Kenya, Egypt, India, Brazil, and South Korea, G7 leaders reaffirmed their commitment to international development cooperation while calling for reforms and a greater focus on private-sector investment.

The leaders stated that traditional development policies have delivered results but have had only a “limited impact” in reducing financial dependence on foreign aid.

Meeting in the French lakeside resort town of Évian-les-Bains, the leaders acknowledged that public resources—significantly reduced in recent years by the United States and other advanced economies—will continue to play a key role but are insufficient to meet global development needs.

The statement, endorsed by South Korea and Kenya, said:

“We will strengthen efforts to address growing global debt vulnerabilities that threaten economic stability and limit the fiscal space needed for essential public service interventions.”

The leaders also emphasized the importance of making progress toward a common approach to restructuring the debts of middle-income countries that do not qualify for the Group of Twenty Common Framework, which was established during the COVID-19 pandemic to assist the world’s poorest nations.

Reuters