– As delivered –
Statement by H.E. Tijjani Muhammad Bande, President of the 74th Session of the United Nations General Assembly
18 May 2020
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Honorable Minister
Deputy Secretary General
Excellencies
I thank the mission of Pakistan for organizing this consultation, at this critical moment that we contend with challenges posed by the novel coronavirus. This pandemic has put our economies and health systems under severe stress and disruptions. More than ever, we must show unprecedented camaraderie in the fight to return our countries to normalcy. I avail my solidarity with Member States who are fighting COVID 19, and extend my sincere condolences to those who have lost loved ones.
This health emergency is unlike any other seen in our lifetime, with devastating impacts on the lives and livelihoods of people around the world. Indeed, as we are here to discuss today, we are faced with a situation in which the COVID-19 pandemic has accelerated the rising debt distress in a number of developing countries. We must not leave these countries under the threat of a debt crisis, as a protracted debt crisis threatens the implementation of the SDGs. We must therefore act urgently to ensure that as we embark on the Decade of Action to implement Agenda 2030, we remain steadfast and galvanize multilateral action for the implementation of the SDGs, as well as the Addis Ababa Action Agenda.
Excellencies
No country is spared from the economic impact of this pandemic, and I am grateful to leaders around the world for how they have responded, particularly, in ensuring that their citizens do not bear the brunt of the crisis alone. However, developing countries have been hit harder by this pandemic because among other things, most of them face financial constraints and lack fiscal space, as well as the vital finances needed for crisis response. Their economic challenges are aggravated by the slump in commodity prices and reversal of financial flows. These combine, to deny them the liquidity needed to build resilience for the poorest and most vulnerable.
While it is encouraging to see that partial debt service suspensions and debt service relief have been offered to Least Developed Countries, Small Island Developing States and some of the poorest countries, this is not enough. Due to the magnitude of the crisis, we need a larger scale intervention to avoid defaults, as the response so far does not include multilateral or commercial debt service suspension for all countries. In addition, many middle-income countries are excluded from the initiative.
We must move quickly on debt and concessional finance to support the most vulnerable people we serve. We must also review our financial architecture, which has long-standing and evident gaps.?
Excellencies
We therefore need a more global and comprehensive approach, in line with the Secretary-General’s report on debt and COVID-19. We must advance steps to provide debt relief for more developing countries. This approach must go beyond traditional debt servicing and include all sources of debt. Furthermore, a debt standstill should be offered on all debt service for all highly-indebted developing and middle-income developing countries. For countries that are not highly indebted, credit should be ensured as part of much needed capital flows to them.
Importantly, we must move quickly on debt and concessional finance to support the most vulnerable people we serve. We must also review our financial architecture, which has long-standing and evident gaps. We must strive to make our sovereign debt system fairer and more effective for debt crisis resolution, and encourage more responsible borrowing and lending.
Such progress can only take place with political will and steadfast international cooperation and I call on Member States to help ensure critical liquidity in many developing countries suffering from a heavy debt burden. The early debt relief initiatives of the G20, World Bank, the IMF as well as from Member States – such as that of Pakistan’s Prime Minister – are welcome. We must leave no one behind in this time of crisis.
The debt principles in the Financing for Development Agenda spells out the need to conduct effective, fairer and timely debt resolution mechanisms, in line with shared responsibilities and with a view to restore public debt sustainability in order for countries to achieve the SDGs. The Addis Ababa framework is there to guide us. Let us heed our pledge and build a financial system and world fit for future generations.
Excellencies
Distinguished Delegations
We must continue to heed the call made by the founders of the United Nations and work together to ensure a better world for all. We cannot miss this opportunity to shift the world towards a more sustainable and resilient path. Only by striving together will we succeed in delivering for all.
I thank you.