PM Browne wants World Leaders to design new financial instruments to combat rising debt levels caused by natural disasters, climate change

(ABSTV/Radio Press Release) A permanent solution to the looming debt crisis is compelling and necessary.  This requires action to design new and innovative financial instruments and to provide debt relief, including debt cancellation, debt suspension, debt rescheduling, debt restructuring and debt-for-climate swaps,” were some of the recommendations of Prime Minister, the Hon. Gaston Browne while address the Leaders Summit on Climate today, organised by US President, Joseph Biden.

The Antigua and Barbuda Prime Minister said that the harmful effects of Climate Change are growing, and the cost of mitigation and recovery is being counted in human lives and livelihoods, noting that the situation is exacerbated by the COVID-19 pandemic.  He pointed out that the situation is now dire, making reference to the huge hit being suffered by tourism dependent nations.   “We are literally teetering on the edge of despair,” he said.

“Over the years, the debt of small states has risen to unsustainable levels, because of repeated borrowings to rebuild and recover from continuous debilitation by natural disasters, arising from climate change.  Mechanisms, introduced by International Financial Institutions (IFIs), for addressing the looming debt crisis are insufficient,” Prime Minister Browne stated.

He said that even the inadequate instruments are denied, because of the false criterion, of middle and high per capita income, which ignores the huge vulnerabilities that small states face.  Prime Minister Browne therefore called on the institutions for more determining criteria of small size, resource constraints and vulnerabilities, be taken fully into account for concessional financing.

Read more at: ABTV/Radio

Source: CARICOM TODAY