President Dr Mohamed Muizzu has expressed strong confidence in the effectiveness of the Debt Sustainability Support Service (DSSS) in addressing the urgent climate financing needs of Small Island Developing States (SIDS), such as the Maldives.
The President made these remarks while delivering the opening address as Co-Chair of the Strategic Advisory Group of the SIDS. He added that the operationalisation of the DSSS will undoubtedly serve as a catalyst for a new era of sustainable development across SIDS.
In his statement, President Dr Muizzu highlighted that a significant proportion of SIDS is either already experiencing, or are on the brink of, debt distress, all while grappling with urgent climate financing needs. He emphasised that achieving debt sustainability is crucial for realising the resilient development aspirations set out in the Antigua and Barbuda Agenda for SIDS (ABAS).
In this regard, he underscored the urgency of operationalising the DSSS without delay. The President reiterated that resolving debt issues is key not only to achieving sustainable development in SIDS, but also to tackling the interlinked challenges of climate change, environmental degradation, and pollution.
He also noted that shifting geopolitical dynamics underscore the need for multi-stakeholder, multilateral solutions to development challenges. This, he said, is why the Maldives has proposed a debt-relief-for-resilience-building mechanism, which rewards countries investing in resilience by offering debt relief.
As such, the President advocated for a country-led approach that takes into account the unique circumstances and sensitivities of each nation. He explained that such an instrument aims to create fiscal space for investment in sustainable development by linking debt relief to resilience-building milestones.
In his closing remarks, the President described the upcoming Fourth International Conference on Financing for Development (FfD4) as a “golden opportunity” to promote and garner global recognition for the DSSS as a critical tool for ensuring debt sustainability in SIDS. While the initiative has already received acknowledgement from many nations, he emphasised that international cooperation and participation are essential to scaling up the implementation of innovative debt mechanisms and concessional finance.
President Dr Muizzu concluded by stating that debt sustainability is not merely a matter of figures—it is about protecting lives, safeguarding livelihoods, and securing our collective future.
Small Island Developing States (SIDS) are a distinct group comprising 38 United Nations (UN) Member States and 20 Non-UN Members or Associate Members of UN regional commissions. The Maldives co-chairs the Strategic Advisory Group alongside Antigua and Barbuda.
