President Dr Mohamed Muizzu has called on the international community to strengthen the connection between debt relief and climate finance to address the growing 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 (DSSS) at the side event titled “Building Resilient Futures: The Global SIDS Debt Sustainability Support Service”, President Muizzu highlighted the vulnerability of SIDS and their ongoing struggles with debt sustainability. He advocated for a more integrated approach to debt relief and climate finance, urging the DSSS to secure more favourable debt relief conditions, including lower interest rates and extended repayment periods.
President 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 stressed the importance of partnerships with Multilateral Development Banks (MDBs) and International Financial Institutions (IFIs) to unlock investments and create new economic opportunities for SIDS.
In his address, the President emphasised the need for SIDS to strengthen their productive capacities by building robust institutions, empowering local communities, and fostering collaboration between governments and the private sector. He also noted the importance of economic diversification in helping SIDS navigate an increasingly volatile global economy.
President Muizzu expressed optimism that the DSSS could drive significant change, create fiscal space for sustainable growth, and help SIDS not only survive but thrive in the face of global challenges.
This event marked the President’s first official engagement following his arrival in New York earlier in the day. The side event was co-chaired by the Governments of the Maldives, Antigua and Barbuda, and New Zealand, in partnership 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).
