UN, Mar 7: The Holy See has raised concerns over the growing burden of foreign debt on developing countries, warning that it is deepening poverty and widening global inequalities.
Addressing the 61st session of the United Nations Human Rights Council in Geneva, Archbishop Ettore Balestrero, the Permanent Observer of the Holy See to the UN, said heavy debt obligations faced by many countries, particularly in the Global South, are diverting resources away from essential public needs.
He noted that large portions of national budgets in some developing nations are being used to service debt instead of funding critical sectors such as food security, clean water, healthcare, housing and social protection.According to Balestrero, excessive debt levels place governments in difficult situations where they must choose between repaying creditors and meeting the basic needs of their citizens.
He described the situation not only as an economic challenge but also as a moral and human rights issue, saying that high debt burdens often lead to austerity measures that worsen poverty and undermine social and economic rights.
The Archbishop also emphasised the need for stronger fiscal governance in debtor countries. He said governments should adopt transparent and accountable financial systems that promote public trust and ensure that taxation and public spending are directed towards the common good.Such measures, he said, can strengthen social cohesion and improve the ability of governments to mobilise domestic resources.
Balestrero further stressed that when conflicts arise between debt repayment and the protection of human rights, governments must prioritise their obligations to safeguard the wellbeing and dignity of their populations.
He also called on creditors — including governments, international institutions and private lenders — to ensure that lending practices do not contribute to poverty or place additional hardship on vulnerable societies.
Highlighting broader structural concerns, he warned that issues such as unfair tax competition, questionable debt arrangements and exploitative lending practices can weaken the social contract and limit the ability of states to fulfil their core responsibilities.
Calling for greater global cooperation, Balestrero urged the international community to address widening economic gaps between and within countries, saying collective action is needed to tackle inequalities affecting societies worldwide.
