Faith leaders and development advocates meeting in Seville have called for sweeping reforms to global financial systems, warning that sovereign debt and climate inaction are trapping developing countries in cycles of poverty and dependence.
The calls were made during a side event at the Fourth International Conference on Financing for Development (FfD4), titled “Jubilee, Reparation, and Restoration: Addressing the Interconnectedness of the Debt Crisis with the Social and Ecological Crises of Our Times.” The event was hosted by several major faith-based organizations, including the World Council of Churches, World Communion of Reformed Churches, Lutheran World Federation, World Methodist Council, Council for World Mission, United Society Partners in the Gospel (USPG), and ACT Alliance.
The leadership of the faith-based organizations said the burden of unsustainable debt was preventing low- and middle-income countries from meeting basic human needs and climate targets. They linked current financial structures to colonial-era dynamics and called for debt cancellation, grant-based climate finance, and structural reform.
“Debt is not just an economic issue—it is a justice issue,” said Rev. Philip Vinod Peacock, executive secretary for justice and witness at the World Communion of Reformed Churches. “Our prophetic calling compels us to stand with communities pushed to the margins by an unjust global economy. The church cannot be silent when debt repayments are prioritized over education, clean water or a livable climate.”
Pratibha Caleb of the Church of North India highlighted the worsening situation in rural areas.
“Debt is not merely a balance sheet issue. It is a profound social and ecological liability, eroding human rights and degrading our planet,” she said. “Without comprehensive debt cancellation and predictable, grant-based climate finance, the Global South remains trapped in cycles of vulnerability, unable to invest in resilience and sustainable development.”
Leaders from Namibia and Zimbabwe also spoke, emphasizing that debt repayments continue to divert funds away from healthcare, infrastructure, and climate resilience. Michael Uhuru Dempers of Namibia and Admire Mutizwa of Zimbabwe said current debt practices were unsustainable and undermined national sovereignty.
Faith leaders also outlined possible solutions. Barry Herman of SocDevJustice, a civil society-driven initiative focused on transforming global financial rules, presented policy recommendations from the “Compromiso de Sevilla”. Kjetil Abildnes of the European Network on Debt and Development (Eurodad) called for the establishment of a United Nations-led debt resolution mechanism.
“Recognizing the interconnectedness of debt, tax, trade and climate is key and allows for the design of measures that address these multiple and interlinked challenges,” said Athena Peralta, program executive for economic and ecological justice at the World Council of Churches. “By adopting a holistic approach that connects debt relief with tax reforms, fair trade and climate action, countries can break the cycle of debt distress, build socio-economic resilience while tackling the climate crisis. Debt justice is tax justice is trade justice is climate justice.”
The Seville gathering formed part of a broader civil society initiative within FfD4, where faith-based networks are advocating for financial systems grounded in justice, transparency, and sustainability. Moderated by Daniel Pieper of the Lutheran World Federation, the event concluded with a consensus that economic, environmental, and social justice must be addressed together.
Negotiations at FfD4 are continuing, with governments and multilateral institutions under increasing pressure to deliver concrete commitments on debt restructuring and climate finance.
