President Dr Mohamed Muizzu has highlighted the difficulties faced by Small Island Developing States (SIDS) in debt management, and called on the international community to strengthen the connection between debt relief and climate finance.
President Dr Mohamed Muizzu has highlighted the difficulties faced by Small Island Developing States (SIDS) in debt management, and called on the international community to strengthen the connection between debt relief and climate finance in a bid to address these challenges.
The President co-chaired the Strategic Advisory Group for the SIDS Debt Sustainability Support Service (DSSS) at the side event of the UN General Assembly, titled Building Resilient Futures: The Global SIDS Debt Sustainability Support Service' held yesterday in New York. Speaking there, he noted the vulnerability of SIDS and their struggles with debt sustainability.
President Muizzu recommended that the DSSS prioritize securing more feasible debt relief conditions such as lower interest rates and repayment extensions.
He spoke of the risk of external shocks and suggested that partnerships with Multilateral Development Banks (MDBs) and International Financial Institutions (IFIs) would pave the path for obtaining new investments and other economic opportunities.
According to the President, diversification of the economy would be key, with SIDS advised to increase collaboration between governments and the private sector.
President Muizzu stated that forty percent of islands within SIDS face debt related challenges.
In the case of Maldives, the total debt is expected to reach MVR 129 billion by the end of the year, as per the State Budget.
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