The Holy See’s Permanent Observer to the UN in Geneva calls for efforts to overcome global inequalities exacerbated by foreign debt.
By Linda Bordoni Speaking at the 61st regular session of the United Nations Human Rights Council in Geneva, the Apostolic Nuncio and Permanent Observer of the Holy See deplored the effects of foreign debt on developing nations, perpetrating cycles of poverty and inequality. Archbishop Ettore Balestrero described debt as a moral and human rights issue plaguing the most vulnerable. Debt as a moral and human rights issue “In too many nations – particularly in the Global South – debt servicing consumes resources that should nourish the common good,” the Archbishop said, noting that funds urgently needed for “basic necessities such as food, clean water, health, housing and social protection” are being diverted. “When debt burdens become crushing, States face impossible choices: repay creditors or fulfil basic obligations to their people,” he added, describing it as “not merely an economic dilemma; it is a profound moral and human rights crisis.” He noted that excessive debt reduces fiscal space, imposes austerity measures, and “perpetuates cycles of poverty and inequality,” which directly affect the realisation of economic, social and cultural rights. Good governance and public trust Archbishop Balestrero said debtor countries should adopt fiscal systems that follow “the principles of good governance, transparency, accountability and responsibility.” He explained that public finance should be based on trust between institutions and citizens, and that when taxation and public expenditure are seen as fair and oriented toward the common good, “social cohesion and voluntary compliance are fostered,” allowing States to expand their capacity to mobilise resources. Human rights before debt repayment He said that “when conflicts arise, human rights obligations must take precedence over debt repayment.” Creditors, whether bilateral, multilateral or private, must ensure that lending practices respect human dignity and do not increase poverty or hardship. He also noted that “illegal debts, tax competition and predatory lending erode the social contract and hinder States' capacities to meet core obligations.” Call to global action Quoting Pope Leo XIV, Archbishop Balestrero said: “Every effort should be made to overcome the global inequalities that are carving deep divides between continents, countries and even within individual societies.”