President Muhammadu Buhari has reiterated calls for review
of the eligibility criteria for debt suspension, including outright
cancellation for developing and least developed countries.
Buhari made the call while speaking at the ongoing 76th
session of the UN general assembly in New York on Friday.
He told the world leaders to urgently consider expansion and
extension of the debt service suspension initiative.
In May, the president told European countries and global
financial institutions to consider loan restructure or complete debt relief for
African countries to help reduce the impact of the coronavirus pandemic.
In the wake of the COVID-19 pandemic, G-20, a group of
finance ministers and central bank governors from 19 of the world’s largest
economies, along with the European Union, established a debt service suspension
initiative (DSSI).
The initiative, according to World Bank, had delivered more
than $5 billion in relief to more than 40 eligible countries, including
Nigeria.
The suspension period, originally set to end on December 31,
2020, has been extended through December 2021.
“On the issue of
debt, we have seen that developing countries have been faced with unsustainable
debt burdens even before the pandemic. The COVID-19 pandemic has increased the
risk of new wave of deepening debt, where vital public financial resources are
allocated to external debt servicing and repayments at the expense of domestic
health and financing for critical developmental needs,” Buhari told world
leaders during UN session.
“I must commend the current initiatives by the international
financial institutions and the G20 aimed at significantly mitigating the
economic situation of the indebted countries and urge for more efforts in this
regard.
“Therefore, there is an urgent need to consider expansion
and extension of the Debt Service Suspension Initiative to include all
Developing, Least Developed Countries and Small Island Developing States facing
fiscal and liquidity challenges.
“In addition, a review of the eligibility criteria for debt
suspension, including outright cancellation, is needed for countries facing the
most severe challenges.”
The president, who acknowledged global efforts, said Nigeria
remains concerned over illicit trade, transfer and circulation of small arms
and light weapons in the country.
“Their excessive accumulation and uncontrolled spread in
many regions of the world are having devastating humanitarian and
socio-economic consequences, especially on the continent of Africa,” he added.
“It is on this note that my delegation calls for the
worldwide application of the Arms Trade Treaty to codify accountability in the
conventional arms trade, which is critical to the security of nations.
“This is in recognition of the need for a broad-based global
partnership in the ongoing battle against trans-border crimes, including
terrorism and piracy.”
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