G20 Summit in India opportunity to act on reforming global financial system amid crushing debt crisis: U.N. chief Guterres

UN chief calls for action on debt relief, reform of global financial system; G20 Summit provides opportunity to take steps to address crisis affecting developing countries. Guterres urges G20 to take action on debt relief, reform global financial system to tackle crisis in developing countries. Guterres calls for action on debt relief, reform of global financial system to address crisis in developing countries. Guterres urges G20 to take action on debt relief, reform global financial system to tackle crisis in developing countries, provide opportunity for action.

U.N. Secretary-General Antonio Guterres has said that the G20 Summit to be hosted under India's Presidency provides an opportunity to take action on debt relief and reform the global financial system, as he voiced concern over the "crushing debt crisis" in the world.

Speaking at the launch of a U.N. report 'A World of Debt' here on Wednesday, Guterres said, "Some 3.3 billion people – almost half of humanity – live in countries that spend more on debt interest payments than on education or health. Half our world is sinking into a development disaster, fuelled by a crushing debt crisis," he said.

Mr. Guterres said that because most of these unsustainable debts are concentrated in poor countries, they are not judged to pose a systemic risk to the global financial system.

"This is a mirage," he warned, adding that 3.3 billion people is more than systemic risk.

"It is a systemic failure. Markets may seem not (to) be suffering – yet. But people are. Some of the poorest countries in the world are being forced into a choice between servicing their debt or serving their people," the secretary-general said.

Noting that deep reforms to the global financial system will not occur overnight, Mr. Guterres said that many steps can be taken now.

"Our proposals include an effective debt workout mechanism that supports payment suspensions, longer lending terms, and lower rates, including for vulnerable middle-income countries," he said.