Prime Minister of Antigua and Barbuda, Honourable Gaston Browne
Excellencies, Distinguished Guests,
It is fitting that my first engagement, just a few hours after arriving in New York, is to address growing external debt, which is the most critical issue facing SIDS in many parts of the world.
Yet, the challenges of debt sustainability are not new to us.
They are deeply rooted, intertwined with economic vulnerabilities that have plagued our nations for years.
Over 40 percent of SIDS are already in, or nearing debt distress.
The Maldives, like many of our fellow island nations, faces a debt-to-GDP ratio exceeding 100 percent.
These stark figures demand urgent action.
The SIDS Debt Sustainability Support Service (DSSS) is a vital and timely initiative designed to address this debt crisis.
The DSSS provides a holistic, sustainable approach to managing our debt. By creating fiscal space, we can redirect resources where they are needed the most—to climate adaptation and sustainable development—rather than re-paying external creditors.
In May, we launched the SIDS DSSS at the SIDS4 conference. I fully share, my friend, Prime Minister Browne’s vision and commitment to the urgent implementation of this transformative initiative.
But the question remains: how do we break free from the debt trap? Who will stand with us? How do we encourage our partners to act in solidarity with our ambitions for self-sustained development?
Sustainable debt management is crucial, yet insufficient, to secure our future.
As leaders of SIDS, we must also spearhead efforts to diversify our economies. Our countries rely on narrow economic bases, often dominated by tourism or fisheries.
The dependence makes us highly vulnerable to external shocks, as the COVID-19 pandemic demonstrated. The Maldives, for instance, suffered one of the world’s sharpest declines in GDP.
Diversification is not merely a goal—it is a necessity for our survival in an increasingly volatile global economy. To achieve this, SIDS must strengthen their productive capacities.
Tomorrow, I will host a Side Event on advancing the Antigua and Barbuda Agenda for SIDS, or ABAS. I invite all of you to attend the event.
Our discussion will focus on economic diversification, sustainable infrastructure, and resilient growth in SIDS economies.
To diversify economies, we need access to finance.
Debt servicing consumes a large portion of our national revenues, keeping our economies in constant fiscal stress.
For many SIDS, resource outflows to external creditors outweigh inflows, worsening the balance of payments and stalling development.
We must strengthen the link between debt relief and climate finance. A key focus for the DSSS should be advocating for meaningful debt relief through lower interest rates, and extended repayment terms, or restructuring to ease the burden.
I’ve been calling for the alignment of climate adaption finance with debt relief. Discussions such as this event, can help explore mechanisms that link these two imperatives.
One such approach is the strategic use of Special Drawing Rights, or SDRs, which can be repurposed to support debt sustainability.
By reallocating SDRs through international financial institutions, we can help SIDS bolster their balance sheets, improve liquidity, and reduce vulnerability to external shocks.
We can partner with the MDBs and IFIs and together, we can unlock investments that drive innovation and create new economic opportunities.
Tools, such as blue and green bonds, debt-for-nature swaps, and concessional financing are no longer aspirational; they are essential components of a resilient economic strategy for SIDS.
These innovative mechanisms have the potential to reduce investment risks, open new sectors for growth, and build the sustainable futures we envision.
At the same time, let us recognize, too, that external solutions alone will not suffice.
We, the SIDS, must take full ownership of our development journey.
We must build robust institutions, enhance our productive capacities, and empower our communities to lead this transformation.
Our future depends on our own ability to harness our human capital, promote entrepreneurship, and implement homegrown solutions that reflect the unique strengths of our island nations.
Let us work together — governments, the private sector, and the international community — to ensure that the DSSS becomes a catalyst for transformational change. By creating the fiscal space needed for sustainable growth, fostering innovation, and building a future where SIDS are not merely surviving but thriving, we can turn this vision into reality.
Thank you.
