Maldives and Japan have signed the Exchange of Notes on the G20 Debt Service Suspension Initiative (DSSI),
The Exchange of Notes was signed on behalf of the Government of the Maldives by Minister of Foreign Affairs Abdulla Shahid, and on behalf of the Government of Japan by Ambassador of Japan to the Maldives Keiko Yanai. The signing of the Exchange of Notes on the G20 DSSI marks an important step towards providing the Maldives with the necessary fiscal space by temporarily suspending debt-service payments owed to official bilateral creditors.
In a statement released following the signing of the Exchange of Notes, Ministry of Foreign Affairs stated the signing will contribute directly to the Maldives’ ongoing economic recovery efforts, and will improve debt transparency and debt management amidst the present economic challenges.
In September this year, a Memorandum of Understanding (MoU) on the Treatment of Debt Services was signed by Minister of Finance of the Maldives Ibrahim Ameer, and the representatives of a number of other creditor countries, including Japan. The signing of the Exchange of Notes with Japan which follows on from the MoU signed in September, and the proposed signing of the Deferment Agreement between the Ministry of Finance and Japan International Cooperation Agency (JICA) early next year, will formalise the DSSI arrangement between the Maldives and Japan.
The signing ceremony which was held at the Ministry of Foreign Affairs was attended by senior officials from the Ministry of Foreign Affairs, Ministry of Finance, officials from the Embassy of Japan and Japan International Cooperation Agency (JICA).