Maldives urges G20 to extend debt service suspension initiative through 2021

Maldives Minister of Foreign Affairs, Abdulla Shahid has called on the G20 to extend their debt service suspension initiative until the end of 2021.

FM Shahid made this remark during his pre-recorded address at the General Debate of the 75th Session of the United Nations General Assembly last week.

As such, the foreign minister noted that Covid-19 has taught many lessons, adding that no country has been spared from the impacts of the pandemic.

Noting that irregularities in the international system have been “laid bare like never before”, FM Shahid stated that not every country has been affected in equal measures. The irregularities in question include unevenness of the impacts, the digital divide as well as deep shocks caused by disruptions in supply chains.

Another lesson the globe has learned from the pandemic is that the toll that debt burdens have on the economies of Small Island Developing States like the Maldives is clearer now.

Highlighting that Maldives appreciates the G20’s debt service suspension initiative, FM Shahid stated that there is a minor difference between December 31 and January 1, “apart from the change in year”.

The minister urged the G20 to extend their initiative until the end of 2021 as economies will still be in recovery across the globe.

Stressing that debt suspension is “only half the story” for Small Island Developing States (SIDS), Shahid shed light on the importance of structural change, innovative facilities and better, greater access to concessional financing.

Proper assessment of vulnerabilities that will shape the way for better-targeted approaches in SIDS, in needed, said FM Shahid.

FM Shahid went on to express gratitude to all foreign partners who have generously extended financial, material and technical support during this crisis, despite going through challenging times themselves.