President Dr Muizzu calls for strengthening the link between debt relief and climate finance
President Dr Muizzu, Co-Chair of the Strategic Advisory Group for the SIDS Debt Sustainability Support Service, at the side event ‘Building Resilient Futures: The Global SIDS Debt Sustainability Support Service’
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.