New York, June 30, 2020. In their AOSIS STATEMENT ON DEBT, the Alliance of Small Island Developing States (AOSIS) recognized that for the members of the Alliance the immediate relief and long-term recovery are vital. It also emphasized that the way the international community aids vulnerable economies today will ultimately decide whether we all can attain the future we want.
AOSIS consists in 44 small islands from the regions of the Pacific and Indian Ocean, the Caribbean and the seas of Africa, India and South China. Cuba is member state of this organization.
The declaration highlighted the support to the actions adopted so far by the international community for debt service suspension for poor developing countries, stressing, however, that these are insufficient to address the challenges facing the Small Island Developing States (SIDS) during this pandemic.
It is underlined that, among those actions for debt relief needed, includes debt cancellation, debt suspensions, debt rescheduling and restructuring, as well as other support measures. In connection to this, it is stated that Debt service suspension on public external debt or temporary standstills on external public debt should be extended for at least a two-year period.
The document also called on all relevant major stakeholders, inter alia, the major International financial institutions, multilateral and regional development banks, bilateral creditors and other private creditors, to take immediate and substantial actions that will allow SIDS to manage the unfolding crisis caused by the COVID-19 pandemic and address their grave socio-economic impacts, while preserving their sustainable development achievements and commitments, and reinforce their resilience to climate change.
The Alliance also stressed the need for a multilateral debt workout mechanism to reduce external debt to a sustainable level in the medium term. It emphasizes that more systematic, transparent and coordinated steps towards restructuring external debt obligations are critical. Unless a longer-term solution is agreed on, a protracted debt crisis looms.
Permanent Mission of Cuba to United Nations
See AOSIS STATEMENT ON DEBT attached
