External debt, largely originating from bilateral loans intended to finance productive and social development, may become a structural constraint on economic growth when external shocks occur—such as economic crises, abrupt changes in the financial environment, or climate-related events—that disrupt the balance of the contracts originally agreed upon.
In this context, debt-for-development swaps emerge as a legally and financially significant response, as they enable the alignment of objectives related to macroeconomic stability, debt relief, and sustainable development. Spain promotes this instrument as an innovative alternative that allows financial obligations to be converted into investments with tangible impact, while preserving the principle of international cooperation.
Our associate Fabián Medizza has published an article on this topic in Vozpópuli, providing a technical perspective on this matter.
The article is available in Spanish here.
Access the Spanish version here.
