G7 Leaders Pledge Enhanced Action to Help Developing Countries Alleviate Debt Burden

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(Central News Agency, Évian-les-Bains, France / Washington, June 16 - International Wire Reports) The Group of Seven (G7) today pledged to intensify efforts to address the heavy debt burdens faced by developing countries, including middle-income nations currently not eligible for the broader G20 debt relief initiative launched during the COVID-19 pandemic.

According to Reuters, G7 leaders issued a joint statement after the summit, reaffirming their commitment to international development cooperation while calling for reforms and greater emphasis on private-sector investment.

The summit also invited countries including Kenya, Egypt, India, Brazil, and South Korea.

G7 leaders acknowledged that while traditional development policies have achieved some results, they have been "limited in effectiveness" in reducing dependence on foreign aid. In recent years, the United States and other advanced economies have significantly cut public development funding, making public resources insufficient to meet global development needs despite their continued importance.

Leaders meeting at the lakeside resort of Évian-les-Bains, France, stated: "We will strengthen our efforts to address rising global debt vulnerabilities, as these risks threaten economic stability and squeeze the fiscal space needed for countries to provide essential public services." This statement was supported by South Korea and Kenya.

G7 leaders emphasized the need for a common debt restructuring mechanism for vulnerable middle-income countries—nations currently not eligible under the G20's "Common Framework," established during the pandemic to assist the poorest countries with debt restructuring.

Eric LeCompte, Executive Director of Jubilee USA Network—a coalition of religious, development, and advocacy groups—said: "They are essentially calling for preventive debt restructuring, addressing debt before it becomes a crisis."

He stressed the critical importance of private-sector investment amid declining public development funds.

According to data from the Organisation for Economic Co-operation and Development (OECD), official development assistance (ODA) in real terms declined by 23.1% in 2025 to $174.3 billion. U.S. aid dropped nearly 57%, while Germany, France, the UK, and Japan also reduced their aid.

Kevin Gallagher, Director of the Boston University Global Development Policy Center, noted this is the first time G7 has formally recognized that poor countries excluded from the Common Framework also face debt challenges.

However, he expressed surprise that the statement did not address the urgent impacts of Middle East conflicts on developing nations.

"Countries outside the G7, especially net energy-importing nations in Asia and Africa, urgently need liquidity financing, immediate fiscal support for imports and fuel/fertilizer subsidies, and long-term low-cost development financing to reduce their vulnerability within the global economic system," Gallagher said.

Oxfam International criticized the G7 statement as insufficient and urged leaders to fulfill their commitment to increase aid to 0.7% of Gross National Income (GNI). (Translation: Hsu Jui-cheng) 1160617

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