Vice President Hussain Mohamed Latheef on Wednesday stated that for many developing countries, particularly most Small Island Developing States (SIDS,) the biggest barrier to achieving sustainable development is debt. He made these remarks while addressing the “Debt Sustainability Support Service” event, which took place on the sidelines of the ‘Fourth International Conference on Financing for Development (FfD4)’.
During his address, the Vice President further stated that this debt was not the result of mismanagement, but rather the result of a systemic failure of the international financial architecture. He emphasised the importance of financial reform beginning with SIDS, highlighting the need for SIDS to have fiscal space to invest in development, access to concessional finance and develop a more sustainable, manageable debt portfolio.
Additionally, the Vice President detailed Maldives’ support of the SIDS Debt Sustainability Support Service and urged the service to be put into operation at the earliest, stating that the service can offer solutions that reflects the needs of SIDS, serve as a hub for knowledge and best practice, and support innovative, homegrown efforts without creating new debt.
Vice President Hussain Mohamed Latheef was joined by the Prime Minister of Antigua and Barbuda, Gaston Browne, Under Secretary-General for Economic and Social Affairs, Li Junhua and Under Secretary-General and High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States, Rabab Fatima during this event.
The Vice President is currently in Spain to attend the FfD4, taking place from 30 June 30th to 3 July, in Seville.