Assistant Minister of Finance: The joint framework is the only way to address debt

The Assistant Minister of Finance for Macro-Fiscal Policies and International Relations, Mr. Abdulaziz bin Mutaib Al-Rasheed, participated virtually in the Financing for Development Forum of the United Nations Economic and Social Council, which was held in New York on Monday 24 Ramadan 1443 AH corresponding to April 25, 2022 AD, in the presence of senior officials from government agencies, the private sector, and international and regional organizations .

Al-Rasheed explained during his participation in the session “Aligning the Global Debt Structure with the Sustainable Development Goals”, which aims to discuss the benefits of the Debt Service Payments Suspension Initiative (DSSI) and the joint framework launched by the Group of Twenty during the Kingdom’s presidency of the group in 2020 with the aim of debt relief for countries The most needy, that the main objective of any debt treatment is to provide the debtor countries with an appropriate financial capacity that enhances their ability to bear debts and strengthen their financial position and enable them to finance their development and repay their debts, noting that after two years of ratification of this framework it became clear that it is the only way to address Debt, with the Kingdom’s support for any efforts or initiatives aimed at facilitating the implementation of this framework, explaining that today’s major creditors are not the same as twenty years ago, and coordination with everyone should be strengthened accordingly, with the Kingdom welcoming any initiative that might enhance dialogue between countries under the dome of the United Nations To find solutions to address debt.

The session witnessed a review of the steps required to make current initiatives work more effectively, including improving information and the role of credit rating agencies, and making proposals to increase the use of innovative tools that enhance countries’ ability to pay their debts, along with international support measures and ways to reform the international debt structure.

It is worth noting that 50 countries have benefited from the initiative to suspend debt service payments with at least $12.7 billion of total debt being deferred between May 2020 and December 2021.


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