President Dr. Mohamed Muizzu has called on the international community to strengthen the connection between debt relief and climate finance.
He was speaking as Co-Chair of the Strategic Advisory Group for the Small Island Developing States (SIDS) Debt Sustainability Support Service, at the side event titled ‘Building Resilient Futures: The Global SIDS Debt Sustainability Support Service’.
Muizzu underscored the vulnerability of SIDS and their ongoing struggles with debt sustainability and advocated for closer integration of debt relief and climate finance.
He recommended that the SIDS Debt Sustainability Support Service (DSSS) prioritise securing more favourable debt relief conditions, including lower interest rates and extended repayment terms.
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.
It was the President's first official event following his arrival in New York yesterday 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).
