The COVID-19 pandemic has fuelled debt sustainability risks in many developing countries. Faced with high levels of debt and insufficient access to finance, these countries are struggling to mitigate the severe effects of the crisis, which could lead to deep and long-term social and economic scarring. For many economies, weak fiscal positions are also constraining their ability to address growing climate risks.
Against this backdrop, the provision of debt relief through different financial instruments can help create the fiscal space needed for countries to invest in a sustainable, inclusive, and green recovery.
This session will bring together the UN system and other international entities and experts to explore efforts to develop instruments to facilitate efforts on debt relief, in order for countries in need to get back on track towards achieving the SDGs. The session aims to strengthen international and regional discourse on debt relief, especially in relation to climate change preparedness and the upcoming COP26.