Translation. Region: Russian Federation –
Source: United Nations – United Nations –
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March 30, 2026 Economic development
"Credit ratings and assessments paint a bleaker picture of developing countries than their economic reality warrants," said Deputy Secretary-General Amina Mohammed, speaking on behalf of the Secretary-General at a special meeting of the UN Economic and Social Council (ECOSOC) on Monday.
A credit rating is an assessment of a country's solvency, determining the interest rate at which it can borrow money on global markets. A low rating makes loans expensive or completely unavailable, hindering economic development.
Today's meeting at ECOSOC is being held within the framework of the commitments set out in the Seville Agreement: countries, rating agencies and other participants in the financial system must hold such discussions regularly.
According to Mohammed, debt servicing is becoming an increasingly unbearable burden for many developing countries today. It amounts to nearly $1.4 trillion per year.
She noted the critical situation for the population: “More than 3.4 billion people live in countries that spend more on debt interest than on health care or education.”
The conflict in the Middle East, which has triggered a rise in fuel and raw material prices, is further undermining the financial stability of developing countries and their access to credit.
The situation is exacerbated by the fact that current assessments often fail to take into account the long-term potential of states. "These ratings and assessments systematically overstate risk, often failing to reflect the fundamentals, progress, and long-term potential of these countries," the First Deputy Secretary-General emphasized.
“Too often, these ratings are static, short-term focused, and often based on incomplete information, limiting a country’s ability to access financing at affordable rates,” she added.
The UN proposes three approaches to system change, starting with a transformation of thinking. "We must transform our thinking, moving from long-term speculation to long-term investment," urged Mohammed, adding that risk analysis should include scenarios and probabilities, capturing not only vulnerabilities but also opportunities.
The second approach involves rethinking success metrics beyond GDP. "GDP tells us the cost of everything and the value of very little. Financial decisions—including credit ratings—shouldn't be based solely on profit and loss figures," she noted.
Mohammed also proposed reviewing the "sovereign ceiling," which limits private sector ratings within the country. According to Mohammed, "it's time to review the sovereign ceiling, which could unfairly limit the credit rating of private sector debt, distorting risks and deterring investment."
The third pillar of reform must be accountability of all parties, including agencies and investors.
In conclusion, Mohammed emphasized that credit ratings must become a tool for progress: “The time has come to transform credit ratings from barriers into a tool for long-term financing and sustainable development.”
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