Spain and EIB Launch Global Alliance for Crisis-Triggered Debt Pause Clauses

Spain and EIB Launch Global Alliance for Crisis-Triggered Debt Pause Clauses

(IN BRIEF) At the FfD4 conference in Seville, Spain and the EIB co-led the creation of the Debt Pause Clause Alliance, enabling temporary suspension of debt service during crises—natural, health, or food-related—without compromising long-term fiscal and social stability. The Alliance, open to all nations and major multilateral banks, aims to standardize these clauses in public and private debt instruments, develop common principles, and encourage private-sector engagement. The EIB has already integrated such clauses into contracts in 70 countries, underlining its commitment to supporting vulnerable communities through resilient financing solutions.

(PRESS RELEASE) LUXEMBOURG, 4-Jul-2025 — /EuropaWire/ — Spain, in collaboration with the European Investment Bank Group (EIB), has launched the Debt Pause Clause Alliance during the Fourth International Conference on Financing for Development in Seville. This new coalition enables countries to temporarily suspend debt repayments when faced with severe shocks—such as natural disasters, food insecurity, or health emergencies—thereby freeing critical fiscal resources for crisis response without undermining long-term solvency or social investments.

The Alliance, an open and adaptable partnership, brings together a wide array of nations and leading multilateral development banks—including the Inter-American Development Bank, African Development Bank, Asian Development Bank, CAF (Development Bank of Latin America and the Caribbean), and the governments of Barbados, Canada, France, Spain, and the United Kingdom. Its core objective is to mainstream Debt Pause Clauses across both public and private financing instruments, establish shared principles and standardized contract language, and create transparent regulations that attract private-sector participation.

Reflecting its commitment, the EIB has already incorporated climate-resilient Debt Pause Clauses into new financing contracts across 70 countries. “As the European Union’s financial institution, the EIB provides tools to ensure vulnerable communities aren’t left behind,” said Nadia Calviño, President of the EIB. “Over the past year, we’ve embedded these clauses in developing countries’ debt structures. Today, we reaffirm our dedication to global partnerships that foster prosperity, equitable outcomes, and stability.”

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SOURCE: European Investment Bank