By In his first official engagement after arriving in New York for the 79th United Nations General Assembly, President His Excellency Dr. Mohamed Muizzu called on the international community to strengthen the connection between debt relief and climate finance, particularly to alleviate the growing debt challenges faced by Small Island Developing States (SIDS).
Photo: President’s Office
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 underscored the unique vulnerabilities of SIDS and their ongoing struggles with debt sustainability. He emphasized the critical need for a closer integration of debt relief and climate finance, proposing that the DSSS prioritize securing more favorable debt relief conditions, such as lower interest rates and extended repayment terms.
President Muizzu advocated for reallocating Special Drawing Rights (SDRs) through international financial institutions to strengthen the financial stability of SIDS, reducing their exposure to external economic shocks. He further stressed the importance of forming partnerships with Multilateral Development Banks (MDBs) and International Financial Institutions (IFIs) to unlock vital investments and create new economic opportunities for these nations.
In addition to addressing international cooperation, the President urged SIDS to enhance their internal capacities by building stronger institutions, empowering local communities, and fostering collaboration between governments and the private sector. He highlighted the need for diversification in SIDS economies to navigate the increasingly volatile global market successfully. President Muizzu expressed optimism that the DSSS could drive meaningful change, create fiscal space for sustainable growth, and help SIDS not only survive but thrive.
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).
President Muizzu’s participation in this event highlights his administration’s strong commitment to advocating for the interests of SIDS on the global stage and finding sustainable solutions to the economic and environmental challenges these nations face.