President His Excellency Dr Mohamed Muizzu called on the international community to strengthen the connection between debt relief and climate finance, aiming to alleviate the debt challenges faced by Small Island Developing States (SIDS).
Speaking as Co-Chair of the Strategic Advisory Group for the SIDS Debt Sustainability Support Service, at the side event titled ‘Building Resilient Futures: The Global SIDS Debt Sustainability Support Service’, he underscored the vulnerability of SIDS and their ongoing struggles with debt sustainability. He advocated for a closer integration of debt relief and climate finance, recommending that the SIDS Debt Sustainability Support Service (DSSS) prioritise securing more favourable debt relief conditions, including lower interest rates and extended repayment terms.
President Dr Muizzu also proposed reallocating Special Drawing Rights (SDRs) through international financial institutions to enhance the financial stability of SIDS and reduce their exposure to external shocks. He emphasised the need for partnerships with Multilateral Development Banks (MDBs) and International Financial Institutions (IFIs) to unlock investments and create new economic opportunities.
He further called on SIDS to strengthen their productive capacities and take ownership of their development by building robust institutions, empowering communities, and fostering collaboration between the government and private sector. The President stressed the need for diversification, noting that it is crucial for SIDS to navigate an increasingly volatile global economy successfully. He expressed optimism that the DSSS can drive substantial change, create fiscal space for sustainable growth, and help SIDS not only survive but thrive.
This marks President Dr Muizzu's first official event following his arrival in New York this morning. The side event was co-chaired by the Governments of the Maldives, Antigua and Barbuda, and New Zealand, in collaboration with the International Institute for Environment and Development (IIED) and the SIDS Unit within the United Nations Department of Economic and Social Affairs (UN DESA).
Source: https://presidency.gov.mv/Press/Article/31646
