● H.E. Dr. Rania A. Al-Mashat emphasized the importance of reforming the international financial structure to better meet the need and address the challenges in developing countries in particular.

● The necessity to reform the “Debt Sustainability Analysis” to support low-income countries.

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development and International Cooperation, participated in a high-level roundtable on the Bridgetown Initiative. This event is part of the 79th session of the United Nations General Assembly ( UNGA) and the "Summit of the Future", held in New York, in the presence of Dr Pepukaye Bardouille, Director of the Bridgetown Initiative; Luis Gilberto Murillo, Colombian Minister of Foreign Affairs; and Lotte Machon, State Secretary for Development Policy in Denmark.

The Bridgetown Initiative was launched to reform the international financial architecture to deal with the growing risks facing the global economy, most notably climate change, social inequality, and geopolitical tensions. 

During her remarks, Al-Mashat clarified that the current economic environment is pushing many of the world’s poorest countries to reduce their investments to meet external debt payments. In addition, emerging markets and developing economies continue to face climate risks, social inequality, financial pressures, and debt stress, which delays their progress and transition to low-carbon economies.

The  Minister added that the Bridgetown Initiative has sought to advance international calls for restructuring and reforming the international financial architecture and increasing capital flows to achieve sustainable development goals (SDGs). The initiative has gained momentum and called on the International Monetary Fund (IMF) and the World Bank  to reform the “Debt Sustainability Analysis” (DSA), which was designed to guide borrowing decisions in low-income countries in a manner that is consistent with their needs and their current and future debt ability repayment capacity.

H.E. also highlighted the importance of the calls adopted by the initiative regarding the reform of international institutions and multilateral development banks, to establish their programs so as to enhance the effectiveness of investments directed to low-income countries, noting that the development of the DSA would enable African countries and other developing and low-income countries to enhance development efforts and overcome the obstacles they face, especially in light of the limited concessional financing and the tendency of countries to finance investment gaps with high-interest loans.

Moreover, the Minister pointed out that the reform of the international credit rating system has become a key part of the development of the international financial system, enabling low-income countries that are most vulnerable to shocks to attract more investments, access capital markets, bridge financing gaps, and enable them to confront climate change.