Maldives calls on wealthy nations to share SDR reserves with smaller countries

Maldives has called on wealthy nations to share Special Drawing Rights (SDR) reserves with small island nations. The statement was made by the Minister of Climate Change, Environment and Energy Thoriq Ibrahim, representing the Maldives, on behalf o President Dr. Mohamed Muizzu. He made the remarks during the high-level side event of the COP29, Operationalising Global SIDS Debt Sustainability support service: Resilient Prosperity in the face of climate crisis and called to act now through bold financial innovation to transform vulnerabilities of SIDS into resilience. The SDR is an international reserve asset introduced by the International Monetary Fund (IMF), in 1969, to supplement the official reserves of its member countries. It is a potential claim on the freely usable currencies of IMF members. A total of USD943 billion dollars have been collected in the fund. The funds provide assistance to countries in need. Speaking at the event, Minister Thoriq emphasised the importance of reviewing the SDR framework, such that it can provide financial assistance to small island nations in support of their initiatives to become more resilient in the face of climate change. He added that this initiative will further reduce the debt issues faced by small island nations. In his address, Minister Thoriq proposed possible modifications to the SDR framework. This includes wealthy countries redistributing the SDR reserves, which are not utilised, to small island nations. The minister stated that this change will help smaller countries to increase their foreign reserves and overcome financial challenges. Additionally, Minister Thoriq shed light on the Debt Sustainability Support Service (DSS), which was introduced by Presidnet Dr. Muizzu and the Prime Minister of Antigua and Barbuda Gaston Browne, at the fourth International Conference on Small Island Developing States (SIDS). DSS is a service which was introduced, focusing on small and developing countries, to enhance economic and climate change resilience. The minister stated that if small countries achieve certain targets in building resilience against climate change, efforts can be made towards debt forgiveness under the DSS. The COP29 presents a significant opportunity for the Maldives to share its climate change resilience initiatives and the efforts exerted to achieve the Sustainable Development Goals (SDGs). Throughout the conference, President Dr. Muizzu will continue to advocate for addressing the challenges faced by Small Island Developing States (SIDS).