Governor of the Maldives Monetary Authority(MMA), Ahmed Munawar, speaking as chair of the International Monetary Fund (IMF) and World Bank plenary in Washington on Friday, called for structural changes that will properly address the issues in ensuring debt sustainability for small island states.

Around two-thirds of emerging economies face significant difficulties with debt repayment, the Governor outlined.

Although the Global Sovereign Debt Roundtable encouraged cooperation, further steps are needed, he said. He also called for an ongoing review of the Debt Sustainability Framework for low-income countries to include changes that take into account situations specific to nations.

The head of the Maldives’ central bank urged the IMF, World Bank, and multilateral development banks to take meaningful strides to assist nations in distress. Multilateral development banks should create instruments such as debt-for-climate to provide relief in return for investments in climate adaptation, he noted.

In his speech, Munawar said that the Maldives has set a target of converting 33 percent of its power consumption to renewable energy. This will not only mitigate climate change but also save a large portion of fiscal and foreign exchange expenditure, Munawar said.

Although US$1.3 billion is needed to reach the goal, donors have contributed only 13 percent (approximately US$169 million) so far, he said, going on to call on international financial institutions to provide easy and affordable financing solutions for small island nations like the Maldives.

Munawar said that structural reforms should seek to strengthen the productivity and capacity of developing economies.

The IMF and World Bank should focus on job creation, equal opportunities, economic diversification and the impact of the global refugee influx, he explained, while highlighting that reforms should be socially acceptable and ensure that the benefits are widely shared.