Riyadh, Saudi Arabia: On April 25th 2022, the Assistant Minister of Finance for Macro-Fiscal Policies and International Relations, Mr. Abdulaziz AlRasheed, participated virtually in the Financing for Development Forum held in New York and organized by the United Nations Economic and Social Council (ECOSOC). The event was attended by senior officials from government agencies and the private sector as well as international and regional organizations.
The Saudi Assistant Minister of Finance participated in a session entitled “Aligning the Global Debt Architecture with the SDGs: What will it take?" which fostered in-depth discussions on the benefits of the Debt Service Suspension Initiative (DSSI) and the Common Framework (CF) launched by the G20 during the Saudi Presidency in 2020. The discussion included steps to make current initiatives work more effectively, including improving information and the role of credit rating agencies, making proposals to increase the use of innovative tools that enhance debt sustainability, along with international support measures and ways to reform the international debt architecture.
AlRasheed explained that the main objective of any debt treatment is to provide debtor countries with a fiscal space that would enhance their debt sustainability, ensure their propriety, strengthen their financial position and enable them to finance their development to repay their debt.
He also indicated that two years since the inception of the endorsement of the Common Framework (CF), during the G20 Saudi Presidency in 2020, it became clear that it is the only way to address debt challenges. He explained that major creditors today aren't the same major creditors of 20 years ago, and we need to realize that and work accordingly. He shared that the Kingdom will support initiatives to strengthen and enhance the implementation of the Common Framework, and welcome any plans that would initiate cross-country discussions within the UN to resolve debt issues.
It's worth noting that 50 countries have benefited from the DSSI initiative with at least $ 12.7 Bn of total debt was deferred between May 2020 and December 2021.