(1st meeting) 2025 ECOSOC Forum on Financing for Development Follow-Up (FfD Forum)

Good morning, everyone. If I may start the meeting, I'm declaring open the 2025 session of the Economic and Social Council Forum on Financing for Development follow-up, and I call to order our first meeting. Excellencies, Secretary-General, Mr. President, distinguished delegates and colleagues and friends, I'm honored to welcome you to the ECOSOC 2025 Financing for Development Forum under the theme, Our Joint Ambition for the 4th International Conference on Financing for Development. We all know that the forum that we we are working towards takes place at a pivotal moment that is marked by both opportunities and many challenges. We have only a few months to go till our meeting in Sevilla, and we need to understand that this forum offers a chance to lay some groundwork for a conference that we think will be important in shaping the future of financing for sustainable development for the years ahead. We all know that we are meeting at a time when unmet financing needs for the Sustainable Development Goals, for climate action, remain very, very large, and our conversations have to go beyond just dialogue They must lead to action that is specific and detailed. So I'd like to thank many ministers that are here, as well as senior officials who have made the effort to travel to New York to participate in our gathering here at the UN. I know that many of you have come from meetings in Washington of the international financial institutions, and we see a need to bridge the relationship between Washington and New York, between the IFIs and the work of ECOSOC, but also the work of all of the General Assembly as we strive to find a better future for economic growth and economic justice. We're going to have a number of fireside discussions among ministers today in the hope that we can encourage more candid and action-oriented dialogues. Sometimes, if you'll forgive me, with the amount of prepared reading that we do and reading aloud, there's often— we miss an opportunity to exchange ideas and to exchange realities. We think it's important to step back from the details of the FFD Forum— the FFD Forum outcome document negotiations and engage in deeper discussions on the challenges that we face and how we might overcome them. We need to understand and remember we live in a world where over 3 billion people live in countries where governments are spending more on interest payments than on health or education. And so we desperately need a more affordable debt architecture. It's that simple. The debt architecture has to be refashioned in such a way that it allows a reasonable prospect for those debts to be repaid. And it allows us to give opportunities for governments to plan ahead, which they cannot do now because of a debt burden which is becoming heavier. And I think this is something that was raised by all of us in the course of the COVID crisis, but it remains very important today, and it's really important that we focus on this question. We need to look at ways of leveraging more affordable financing from a number of actors and donors that compose today's development cooperation landscape. Longtime bilateral donors, multilateral development banks, emerging and non-traditional development partners all have a role to play. We need to be able to mobilize both public investment and domestic and international private finance, which always must be focused on how it can make the most impact in allowing growth to take place. I also don't want to forget the simple fact that the mobilization of domestic political resources— to put it in its simplest term, taxes and other ways of raising revenue— remains a critical job that should unite all 193 countries. Every single one of us and all of our citizens must be prepared to make a contribution to dealing with the financial needs of the country. In fact, I would say that there is no example of a successful turn to really long-term dramatic development that does not include a substantial engagement by the local population in the financial health and in a successful financial architecture for the country. I also have to say a word to all of you about the current challenge we're faced— the world faces in trade. The recently announced moves in Washington by the American government on a wide array of tariffs for a wide array of countries has had a dramatic shock of impact on the global economy and on all nation-states. We need to understand that a successful path to better prosperity for everyone involves access to trade, steady trade. Trade is not a 4-letter word. Trade is a positive way for countries to exchange goods and services and to be able to emerge from poverty themselves. We need to reinforce the importance of reducing barriers to trade rather than increasing barriers to trade. To think that trade is a win-lose proposition that some countries win from trade and other countries lose, or to think that there is a simple national solution to the problem of international trade, is simply wrong. It's wrongheaded. It doesn't help us to emerge. We need to embrace the need for sustainable, and effective trading relationships among all countries. And my last point is perhaps it's the inner nerd in me and in all of us is to say this: we can only achieve what we can measure. And we're still behind in our ability to collect data, our ability to find reliable sources of information. that tell us how we can go forward. So we need to understand that the data remains limited, such as we're not capturing the data on the relationships between women and men. We're not tracking the extent to which the economies of the world are tied up together. If we're not able to address effectively the progress that we either are or are not making on climate change, if we can't measure accurately what's happening, And if we can't accurately measure governance, then we also have a problem. We are looking forward to very frank exchanges on these topics during today's fireside chats. Tomorrow's special high-level meeting with Bretton Woods institutions, with the WTO and UNCTAD, will build on these discussions. Secretary-General, I forgive you. We need to know how to leverage each actor's unique comparative advantages to strengthen the multilateral system and finance sustainable development. So it's a busy week for us this week. We are going to be meeting in a variety of fora to be discussing these critical questions, and it's very important that we listen carefully to what each one of us is saying. It's important that we take advantage to understand that while we all come from different realities, While some of us come from advanced economies, some of us come from developing countries, some of us come from finance ministries, some of us come from political foreign affairs and diplomatic ministries, it's exceptionally important that we work together.

It is so important for us to work together to face our common problems, the problems we're facing and we're sharing. So above all, that's what's important.

Asian today, with commitments that are bold, but also not just stated commitments, but what we are actually doing and prepared to keep on doing and to do more of, to find within us innovation, creativity, and to renew partnerships that can deliver lasting and transformative impact. Thank you very much for allowing me to say a few words in my role as President of ECOSOC. And now I will turn to Secretary-General. Mr. Secretary-General, we look forward to hearing from, from you for your comments. And after you, we will turn to the President of the General Assembly. Thank you very much.

Mr. President of the General Assembly, Mr. President of ECOSOC, Excellencies, ladies and gentlemen. This year's ECOSOC Forum comes at a pivotal time. We are in the final stretch of preparations for the 4th International Conference on Financing for Development in Sevilla. And we face some harsh truths. The harsh truth of donors pulling the plug on aid commitments and delivery at historic speed and scale. The harsh truth of trade barriers being erected at a dizzying pace. The harsh truth that the Sustainable Development Goals are dramatically off track, exacerbated by an annual financing gap that an estimated $4 trillion. And the harsh truth of prohibitively high borrowing costs that are draining away public investments in everything from education and health systems to social protection, infrastructure and the energy transition. But there is another, much larger and more dangerous truth underlying all these challenges. The harsh truth that global collaboration is being actively questioned. Look no further than trade wars. Trade, fair trade, is a prime example of the benefits of international cooperation. And trade barriers are a clear and present danger to the global economy and sustainable development, as demonstrated in recent sharply lower forecasts by the International Monetary Fund, UNCTAD, the World Trade Organization, and many others. In a trade war, everybody loses. Especially the most vulnerable countries and people, we are hit the hardest. Excellencies, against this turbulent background, we cannot let our financing for development ambitions get swept away. With just 5 years to reach the Sustainable Development Goals, We need to shift into overdrive. And that includes making good on the commitments countries made in the Pact for the Future in September. From an SDG stimulus to help countries invest in their people, to vital and long-awaited reforms to the global financial architecture, to the Pact's clear commitments to open, fair and rules-based trade, To its call for an analysis of the impact of military expenditures on the achievement of the SDGs, with a final report out by September. To the Pact's urging for an ambitious outcome to July's Conference on Financing for Development. As you continue negotiations on the draft outcome document for Sevilla, I push for action in 3 key areas. First, on debt. When applied smartly and fairly, debt can be an ally of development. Instead, it has become a villain. In many developing countries, gains are getting crushed under the weight of debt servicing, siphoning away investments in education, health and infrastructure. And the problem is getting worse. Debt service for developing economies has soared past $1.4 trillion a year. Debt service now exceeds 10% of government revenue in more than 50 developing countries, and more than 20% in 17 countries— a clearly warning sign of default. The Sevilla Conference should emerge with a commitment by Member States to lower the cost of borrowing, improve debt restructuring, and prevent crises from taking hold. And this includes establishing a dedicated facility to help developing countries manage their liabilities and enhance liquidity in times of crisis. The G20 must also continue its work to speed up the Common Framework for Debt Treatments and expand support for countries that are currently ineligible, including middle-income countries in difficulties. And credit ratings agencies need to rethink rating methodologies that drive up borrowing costs for developing countries. At the same time, the IMF and World Bank should push forward on reforming debt assessments to account for sustainable development investments and climate risks. These proposals, and the many others contained in the draft outcome document, provide an ambitious roadmap to help developing countries use debt in a constructive and sustainable way. Second, we need to unlock the full potential of our international financial institutions. If finance is the fuel of development, multilateral development banks are its engine. And the engine needs revving up. We will keep pushing to triple the lending capacity of multilateral development banks, making them bigger and bolder, as called for in the draft outcome document. This includes recapitalization, stretching their balance sheet, and substantially increasing their capacity to mobilize private finance at reasonable costs for developing countries. We must ensure that concessional finance is deployed When it's most needed, and we need to see that developing countries are represented fairly and have a voice in the governance of these institutions they depend on.

Troisièmement, and third, we need concrete actions to increase all streams of finance. Yes, these are tough times. But it is in difficult times that the imperative for responsible and sustainable investment is even more critical. At the country level, governments need to strengthen the mobilization of domestic resources and channel them towards critical systems such as education, health, and infrastructure, to work with private sector partners to increase blended finance options. And to scale up their fight against corruption and illicit financial flows. At the global level, we must keep working to shape an inclusive and effective global tax regime and ensure that international taxation rules are applied fairly and effectively. Donors must keep their promises on official development assistance and ensure that those precious resources reach developing countries. For our part, we will fully deploy our UN country teams to work with host governments to channel the maximum amount of resources towards sustainable development at the national and regional levels. And we will use every opportunity, including the COP30 in Brazil, to call on leaders to identify innovative sources of climate finance for developing countries, leading to the mobilization of $1.3 trillion annually by 2035. All this requires a focus on innovative sources of finance. Excellencies, in many ways, Financing for development is integral to the future of the multilateral system. It's a matter of our conviction of the power of global solutions to global problems like poverty, hunger, and the climate crisis. Let's make the most of this critical moment as we prepare for the conference in Seville, and let's keep our ambitions high. And deliver for people and planet. I thank you.

Merci beaucoup, Monsieur le Secrétaire général. Maintenant, je vais donner la.

I shall now give the floor to the President of the General Assembly.

General Assembly, His Excellency Philemon Yang, to please address the forum. Excellency, you have the floor.

Thank you.

Your Excellencies, ladies and gentlemen, let me begin by thanking His Excellency Bob Rae, President of the Economic and Social Council, for inviting me to speak at this important and timely forum. Indeed, time is of the essence. This year's forum plays a pivotal role in preparing the 4th International Conference on Financing for Development, which will take place soon. With only 5 years remaining to meet our deadlines for the 2030 Agenda for Sustainable Development, this conference represents our most important opportunity to urgently close financing gaps and achieve our goals. The challenges to sustainable development are well documented. Conflicts are eroding gains and impeding progress. Tensions in global trade are affecting economic growth. Many countries continue to have challenges with rising debts and a limited fiscal space. Some are spending as much as 20% of their government revenue on servicing their debt, revenue that could otherwise have gone into sustainable development. It is fitting that this is referred to as a debt trap. Such traps jeopardize development. Meanwhile, our inability to reform the international financial architecture is severely restricting capital access. It is fair to say that progress across the entirety of the Sustainable Development Goals hinges on our ability to close the financing gap, which stands at $4.2 trillion per year. And the adoption of the Pact for the Future last September was a recognition of the structural impediments to fixing financing. This transformative step boosted calls to reform the global financial system, expand international trade, and reduce inequalities, particularly in developing countries. The responsibility, therefore, is now on us to deliver on these reforms. We must address the challenges that restrict access to financing for development. We must recommit to accessible, affordable financing, and we must work together to unlock the flow of capital, investment, and official development assistance to developing countries. Your Excellencies, time is of the essence. Let us use this forum to bridge divides, build trust, and lay the foundation for success in Sevilla in Spain. Action is needed to reaffirm the Addis Abeba Action Agenda. Together, we must work towards a successful outcome of the 4th International Conference on Financing for Development to ensure that no one is left behind. Thank you.

Thank you very much, Mr. President. I know that the Secretary-General and the President have many, many obligations and we thank them so much for coming and speaking with us this morning and we understand they have to Thank you very much, Mr. Secretary. Thank you so much. Merci, Philippe. Merci beaucoup. There you are.

Okay.

Okay, now we turn to some of the business of the meeting that we have to adopt. We need to adopt the agenda and other organizational matters. The forum will now consider item 1 of its provisional agenda entitled Adoption of the Agenda and Other Organizational Matters. I invite all of you to turn your attention to the provisional agenda As contained in document E/FFDF/2025/1. And are there any comments on the provisional agenda? May I take it that the Forum wishes to adopt the provisional agendas contained in document as I've set out? I hear no objection. It's so decided. We shall now turn to the rules of procedure and modalities for the meetings of this Forum. In regard to the modalities to be applied to the forum, I'd like to recall that at the forum held in 2024 and previous meetings, it's been agreed that the rules of procedure of the functional commissions of the ECOSOC, as well as the relevant provisions of General Assembly Resolution 69/313, 70/192, 71/217, and relevant decisions of the Council would be applied to the meetings of the Forum. Furthermore, in the event of any contradiction between the Rules of Procedure and the relevant provisions of the Assembly resolutions and Council decisions, the latter will take precedence. May I take it that the Forum agrees to apply the arrangement that I just mentioned to the meetings of the 2025 Forum? I hear no objection. It is so decided. We're now going to proceed to hear statements from the co-chairs of the Preparatory Committee of the 4th International Conference on Financing for Development and by the host of the conference. I first give the floor to my good friend, His Excellency Zéphyrin Maniratanga, who is the Permanent Representative of Burundi, co-chair of the Preparatory Committee of the 4th International Conference on Financing for Development.

My dear friend, Ambassador, I give you the floor.

Thank you, Mr. President. Mr. President, Excellencies, ladies and gentlemen, ministers, distinguished delegates, ladies and gentlemen, it is a great pleasure for me to join the President of ECOSOC to welcome you Welcome to the ECOSOC Forum on Financing for Development follow-up. As co-presidents of the Preparatory Committee for the 4th International Conference on Financing for Development, we believe this forum is a crucial occasion to provide new political impetus to the preparatory process for the 4th International Conference on Financing for Development, and we would like to warmly thank the President of ECOSOC for providing this space in order to move forward our joint action. And we find it particularly encouraging to see the active participation of finance ministers, ministers of foreign affairs, and for cooperation for development throughout the entire preparatory process. Thank you, Mr. President. Thank you, dear colleagues, because ultimately it is you, honorable ministers, who will give life to the results of Seville through your leadership in your ministries, in your international commitments, and your national development plans. Your presence today is proof of how important this process is for you. Organizing over 60 parallel events in the framework of this forum fully shows the high-level interest in our work. And we are meeting here in New York in a moment of great international challenges. The world is facing a convergence of crises, economic uncertainty, a shrinking of budget space, A rise in levels of debt and tensions in the multilateral system. And for many countries, the capacity to invest in their populations, in climate action, and in long-term resilience is limited because of unsustainable debt and limited access to affordable financing. As we approach 2030, the urgency The need of mobilizing means to apply Agenda 2030 and its 17 SDGs becomes more and more pressing. Financing needs to reach the SDGs have increased significantly. We currently estimate that it's $4 billion per year, as it is outlined in the Final draft document for FFD4. And now, taking into account this situation, we must be ambitious in mobilizing our investments in SDGs, and we must free up resources on a huge scale, especially for sectors and communities that have been left behind. And we must increase access to affordable and long-term financing, especially for countries that continue to face high borrowing costs despite their urgent needs when it comes to development. We must offer up measures for relief that are significant and measures that provide for restructuring debt so that countries can turn their resources towards education, health, climate action, and growth. And we must carry out serious reform of the international financial architecture so that all countries have the capital and the political space that are necessary in order to build economies that are resilient and inclusive. These priorities are not merely abstract concepts. They are the basis for an agenda, for development agenda that works for everyone. And as we have shown in the Pact for the Future adopted in September of 2024, sustainable development is the basis for a prosperous and peaceful future for all. This forum gives us an essential platform to begin to build a solid consensus around these priorities. Thank you very much.

Thank you very much, Ambassador. We really appreciate your presence here, and we hope to have many opportunities to speak about the proposals and aspirations that you outlined today.

The floor is to His Excellency Rui Vinhas, who is also the Permanent Representative of Portugal, co-chair of the Prep Committee of the 4th International Conference on Financing for Development. Ambassador Vinhas, you have the floor.

Thank you. Thank you, Mr. President, and allow me to congratulate you for the strength of your introductory remarks. Excellencies, building on the statement of my fellow co-chair, the Permanent Representative of Burundi, allow me to add the following remarks. This year's Forum assumes particular importance not only in view of the challenges that we face and the rapidly evolving international context, namely on financing perspectives and trade, but also the opportunity provided by the preparatory process of the Forum— of the 4th International Preparatory Process of the Conference on Financing for Development, entering in its final phase, identify much-needed solutions to these very same challenges. Indeed, with the first part of the 4th FFD4 Preparatory Committee session following closely, this is our chance to sharpen priorities and shape the pathways that will directly inform FFD4 outcomes. The programme of this Forum and of the PrepCom that will follow has been designed with this in mind. Through a series of fireside chats, We will delve into issues that are both persistent and pressing in the financing for development landscape: developing development cooperation, debt sustainability, mobilizing private finance, the role of trade and technology, and investing in data to accelerate sustainable development. These are not technical discussions. They go to the heart of what countries and citizens require to achieve sustainable development: fiscal and policy space, international support, and an enabling global environment. I urge all of you to engage fully in these conversations, as your insights and leadership will be instrumental in shaping the outcomes we need to move forward. We appreciate the engagement of civil society in this context, as we do in the preparatory process of FFD4. We also welcome the participation of the Executive Directors of IMF and World Bank following the Spring Meetings just held in Washington, D.C., along with other representatives of the Bretton Woods institutions, the WTO, TO and UNCTAD. Their involvement is fundamental to drive forward this agenda successfully, helping also to close the gap between New York, Geneva, and Washington, D.C. This is a key element in the countdown to Sevilla. As co-chairs, we remain committed to working with the Bureau and the co-facilitators to ensure an inclusive, balanced and forward-looking process, as well as a trusting environment to bring the FFD4 preparatory process to a successful conclusion. Despite the challenges and uncertainties surrounding us, it is our hope and appeal that over the next few days discussions move us towards concrete solutions, focusing on areas, on areas of convergence and potential compromise. rather than unproductive editing. Let us make the Forum count for FFD4, for the SDGs, and for the people and planet we serve. I thank you.

Ambassador and colleagues, thank you so much for your strong leadership, and I'm really looking forward as President of ECOSOC this year to working closely with both of you and with the teams that are involved in helping to work on Sevilla. And now it's my pleasure to ask our— the host country of the conference, Spain, and invite Her Excellency Eva María Granados Calliano, Secretary of State for International Cooperation of Spain, to make a statement. Your Excellency, Secretary of State, the floor is yours.

Gracias.

Thank you very much. Good morning to everybody, Excellencies, distinguished delegations. It is a privilege for my country to be here today in a crucial moment for the multilateral system. We find ourselves facing unprecedented challenges in the implementation of Agenda 2030 and in financing for sustainable development that demand a collective and renewed commitment. The centrality of the United Nations is more important than ever to coordinate global efforts towards a world that is more just, inclusive, and sustainable. We find ourselves in an era of changes that would also help us identify opportunities and contribute to more efficiency. Dialogue and coordination are more important than ever, and in In Spain, we are committed to the path of multilateralism, which we have chosen together, convinced that cooperation will take us farther than competition. We are working very hard in different fora and on different levels— for example, in the Forum on Financing for Development, in the annual spring meetings of the World Bank Group last week, in the G20, or in the UN Framework Convention on Tax Cooperation. All of these are examples of how our efforts are focused on moving towards a new financing paradigm that will help us have more and better resources in order to achieve the SDGs anywhere in the world. The 4th Conference on Financing for Development in Seville should prove that together we can do it, that The political will of our countries to improve the lives of people is stronger than the difficulties or the uncertainties that we face. We can and we should move forward in order to look back when we are in the future and remember Seville as a moment of solidarity, hope, and support for multilateralism and for tangible, real commitments. And we are confident that we'll that we will reach ambitious results, but results that are also concrete and applicable. And our work won't end at the final declaration. The commitments of the 4th Conference should go along with a follow-up mechanism that will ensure that there is accountability and effective implementation of our actions and agreements. This 4th Conference, the last before 2030, will be the moment that we ratify our will to achieve the SDGs. And we all know that without the necessary financing, they will just be an unreachable dream. And that is why the cost of inaction would be much higher than the financing gap, because it's about trust, global trust between different actors and the credibility of the multilateral system as a whole. That is what's at play in Seville. We believe that we will all be able to reach consensus to go beyond what we agreed in Addis. The world has changed, but our goals should continue being the same. So we must strengthen and renew our tools in order to accelerate the achievement of the SDGs. The first draft of the Seville Declaration is a good starting point. And in this sense, I would like to truly thank the co-facilitators who have done an excellent job. Thank you, Nepal, Zambia, Mexico, and Norway. And beyond the final document of the conference, we will also have a civil platform for action in order to mobilize different partnerships in which countries and organizations that want to go beyond in their ambitions can commit and launch initiatives in a voluntary fashion. And it will be important to work towards human rights and galvanize partnerships that are as efficient as possible. Each country has the possibility to participate in initiatives that are of interest to them. So let's take advantage of this opportunity. In Spain, we support the formula of strengthening the substantive character of debates in the framework of this ECOSOC Forum on Financing for Development, including those that relate to specific action areas, along with accountability and a revision of gains on a national and global level in terms of commitments of different countries. Excellencies, delegations, we hope that Seville will give us that paradigm shift that we want and will give way to a true global partnership that will help close the financing gap for sustainable development and strengthen cooperation in all fronts. That depends on all of the countries that are represented here today, and it depends on the constructive commitment of actors at all levels. And you know that you can count on Spain in this endeavor, and we hope to be able to count on you.

Thank you.

that the 4th Conference on Financing for Development in Seville is a resounding success. Thank you.

Muchas gracias.

Thank you very much.

I would like to express my thanks to the Secretary of State for International Cooperation of Spain for his statement. Colleagues, that concludes the opening segment. Don't move, don't move. I now will pause the meeting very briefly. I'd like to invite the I'd like to invite the moderator and the panelists for the first ministerial fireside chat to take their seats in front of the forum here, and no one else is going to move.

We're just going to do that.

Thank you.

I told you not to move. I don't.

I don't know.

Colleagues, we must get back to work. Excellencies, distinguished delegates, I would now invite the Forum to begin its consideration of Agenda Item 2, Sub-item B, thematic panel discussions to hold ministerial fireside chat number 1 on lowering borrowing costs, I think that should attract everyone's attention, and advancing development-oriented debt solutions. I'm very pleased to welcome the distinguished presenters for this discussion. I also welcome Monsieur Claver Gatete, who is the Executive Secretary of the Economic Commission for Africa. Many of you will recognize— in the room will recognize Claver, who was our former colleague as a PR.

Thank you.

Which is proof that old ambassadors never die. They just come back with a new title. And that is the case for Claver. Before turning the meeting over to the moderator, I would like to remind participants beyond all of you that there is no pre-established list of speakers for the discussions, comments, and questions you may have. Delegations wishing to make comments and pose questions will be invited to signify by pressing the microphone button. I also take the opportunity to remind participants that the time limit for interventions will be no more than 3 minutes and might be less at the discretion of the chair. If necessary, please note that given the limited time available, the microphone will be automatically cut off. This is done not by me because I don't approve of what you've said, it's just a simple matter of time where the machine stops. This is in the interest of hearing all speakers that have inscribed. Having given you this cheery, cheery news, I now turn the meeting over to the moderator. I look forward to an open, constructive, and productive exchange of views. Mr. Gateti, you and your colleagues have the floor.

Yeah, thank you very much, Mr. President, and good to see you, honorable ministers here present. Mr. President, the Permanent Representatives, dear colleagues. Well, the topic I think is the most interesting ever: lowering borrowing costs and advancing development-oriented debt solutions. Here we have a panel that's going to tell us how we do that, but we all know that at this point in time, the borrowing costs, even in the African continent, is in the range of 12% and above. And yet in some of the developing countries, it's about 3%. The aid is declining. Concessional resources are not enough. We are highly indebted. The debt on the African continent is more than $1 trillion and the payment for interest is more than $100 billion every year. And at the same time, of course, that leaves us with quite a lot to think about. So when you talk about fiscal space, your budget, most of it goes to pay the debt in foreign currency and there are no resources in foreign currency to stabilize the currency itself. So that means there are macroeconomic imbalances, there is also the fiscal space that is not enough and there is not much left to invest in infrastructure, in health, in education, in social protection and other needed areas. As we talk about Sustainable Development Goals, we have to understand that there is no space that is left. This is also made worse by the trade tariffs that are also coming our way, and in addition to climate change, which on African continent is costing us about 5% of GDP and above for some of the countries. Now, we are a continent where we don't have much of the many countries that are investment-grade. We only have Botswana and Mauritius, and that means the situation is really getting very worse for us, and that's why we are having this kind of meeting to see how to address this situation. Here I have important people here. I have my sister here, Her Excellency Rania, Minister of Planning, Economic Development, and International Cooperation And I can tell you from Egypt, she's also an expert in this area. So I hope you give a solution to the question that we are trying to answer. We also have His Excellency— sorry, we have His Excellency Béatrice Doman, Treasury Director General from France, who is also here and definitely an expert also in this area. We also have His Excellency Mr. Gareth Santo, Uh, Guadalupe. I always have problems pronouncing his name, but I always remember him because he's the tallest person, I think, in this year, but also in the room, I think. Thank you much. He's the Minister of Finance from São Tomé. These are the people who are going to take us through, uh, in terms of answering some of the questions. And by the time that we finish, we want to make sure that this session here really discusses steps that are needed to lower borrowing costs for developing countries and bring about a development-oriented sovereign debt architecture? I'm going to give just 3 questions in general, and you can pick what you think you are comfortable in terms of answering. The first one: how can international and national efforts strengthen efforts to support preventative debt measures such as state contingent debt instruments, including climate-resilient Debt clauses? You have to memorize them like we used to do in high school. Number 2, what mechanisms can lower borrowing costs for developing countries and enhance fiscal space for sustainable development investments? And the last one is, what steps are needed to ensure sovereign debt restructurings broadly support development priorities and are efficient, fair, predictable, coordinated, timely and orderly. Let me start with my sister here, Rania. Give us— take us through and you can answer any question that you—

Well, thank you very much, and there's no better time to be here and talk about finance for development given everything that's happening. We were just in Washington, D.C. for the spring meetings for the IMF and the World Bank, and what's on everybody's mind is how countries are going to move forward with their development agenda, given the uncertainty that exists and also the growing borrowing costs? Let me here maybe dissect the 3 questions in one or package it in one go. First, there's a responsibility for governments. There's cooperation that needs to happen with stakeholders nationally. Also, there has to be cooperation with international players. That's, if I will, a pyramid, given Egypt's history with pyramids, or a triangle that is very important. Nationally, it's more important than ever for countries to be very clear with their reform agendas in order to create more credibility, in order to reduce costs because of the lack of credibility. A clear message on reforms, a clear message on engagement with the private sector comes as a key priority more than ever. The second point is, and all of us know this, the amount of financing we heard in the opening speeches, the amount of financing that's required for the SDGs, for climate action, is quite significant. The only way to bring this about in countries is through private sector engagement. That can only happen, again, if governments have clear reform agendas that invite the private sector, but through a competitive environment that is useful. The third point then comes, how are we going to finance all of this? Many of what was mentioned today, and we've been in this space for some time, the blended instruments, the grant element. But as you rightly pointed out, there is a very tighter space that is happening from official development assistance or also from financing from different institutions. Nonetheless, whenever we are in discussions, what is mentioned is there is supply, but we don't find enough projects where this money can go to. And here comes the importance also of some of the tracks which are mentioned in Seville, which have to do with discussions and cooperation between countries in terms of showcasing how some of them have been able to make use of the very scarce resources that exist to leverage their national agendas. So this is, again, a very important point. In our case, for instance, There's very much commitment in terms of reforms, but there's also clarity with respect to the projects that we want financed in order to close SDG gaps or to bring in more private sector engagement. We have very good relationships with international development banks and multilateral institutions, and in that, it's very important that governments be able to maneuver the different governance of these institutions. Institutions to maximize the returns of the resources that do exist. When we say grants for feasibility studies of projects, when we say that the private sector can tap on concessional finance, that is happening through different institutions if governments are clear with what they want and they create the infrastructure for that to happen. When you mentioned debt and one of the elements which all of us are facing, particularly in the continent, that a big portion of our deficit goes for interest payments and for debt itself. What is key here, and this is mentioned also in many instances, is domestic resource mobilization. One of the elements of domestic resource mobilization is capital markets enhancement so that in many instances you are also able to benefit from many of the assets that do exist. There's a very detailed reform agenda that can help countries cut costs when it comes to being able to mobilize financing, but also to push forward on development and SDGs. The final word I would say about debt restructuring, debt swaps have been mentioned extensively. In our case, we've had debt swaps over the years with some of our bilateral partners, and they have been directed to development projects of mutual interest, and they have been very useful because they are credit positive. Many of the bilateral debt swaps are always taken with less of the anxiety which you see around a common framework or around the private sector restructuring, debt restructuring. Nonetheless, there are many attempts today, and also, given what's happening globally, I would say more acceptance of debt swaps or debt restructuring in general, debt swaps being one example. This is maybe just to sum up. Governments still need to push their reform agendas and be clear about them. More now than ever. Number 2, that there are many reforms related to domestic resource mobilization that can free some space. The 3rd is IFIs and MDBs are very, very important for mobilizing and providing concessional finance to the private sector, and we have seen it happen, but a lot has to happen on the preparation of projects and technical assistance on what they need to do. Then finally, bilateral debt swaps do matter, have had positive impact, and today more than ever, there is an open window to think about debt restructuring with less nervousness around markets. Thank you.

Thank you very much. I think these are very, very useful points, especially when you mention that in order to really improve our financing situation, We need to focus on domestic resource mobilization. We have already used the experience of Egypt to support Libya, and that experience was very, very useful. It's necessary now because the tax-to-GDP ratio is 15.6% on average on the whole entire African continent. It's very critical, but also to share the lessons in terms of debt swaps, swaps for climate, swaps for education, and so forth. and learning from each other becomes very useful. Now, let me come to our colleague, and sorry I mispronounced your name, Mr. William Rose, Assistant Secretary for Multilateral Development. I was reading from an old script which was given to me, but I want you to really, building on what Rania has just mentioned, also building on that one to see what can we do. We've been now in FFD discussing about this. We had the Pact for the Future. We've been discussing the reform of the global financial architecture. Coming from the country, one of the countries that is a leading country in terms of resource mobilization for developing countries, really, I want you to add on what Rania has just mentioned.

Thank you very much for inviting me. I am very honored. I agree that the 3 elements you have put on the table— preventive action, lowering borrowing costs, and efficient sovereign debt restructuring— they have to be articulated, as it was said by the Minister of Egypt. If I look at preemptive action, clearly what comes to my mind is that there is a need to have a global approach with first the quality of institutions, as it has been said. In the G20 process, South Africa organized last March a very interesting event with African countries focused on debt, and most of the discussion was not on debt restructuring, but it was on strengthening the debt management unit. I think that this message could be highlighted in the context of the Sevilla Conference. There is a need to have more transparency, to have more active liability management. It's true for all countries, France and over. The need of check and balance, the role of parliament, I think it's very important. Second point, domestic resource mobilization. It's of course the dimension of revenue, but it's also, as the minister said, dimension of domestic saving, how to mobilize them and how to create the links, we can see in some regions that the banks, local banks, they cannot absorb any more sovereign debt because they have difficulties, in a way, to sell sovereign debt to other funds, other financial institutions, so to create a channel between the sovereign bonds and the population. With their savings. Finally, on preemptive capacity to absorb shocks and the climate-resilient debt clauses, when we talked about that 1 or 2 years ago, it was just a start. Now, I think that more and more bilateral creditors are integrating these clauses, and also multilateral development banks have responded to the call. All these elements, it helps to lower borrowing costs, but on top of that, indeed, the quality of macro policy matters a lot. I think that the role of MDBs is key to provide low-cost and concessional financing. We need to have bigger MDBs. I am convinced that €1 or $1 are very well used when we put this money within the capital capital of MDBs, because it has a direct impact on their capacity to finance, and they can also use a percentage of the capital to do some credit enhancement. We have seen a concrete example recently, for example, in Côte d'Ivoire, to support liability management with commercial banks. So I really think that the SEVI conference could put an emphasis on that. They can also help the countries to develop local currency markets, as it was mentioned. I also think that, as official bilateral creditors, we have to be even more mobilized to complement the MDB financing with bilateral budget support when it is necessary. It's important that we play— we want MDBs to be catalytic but we have also to demonstrate that through our bilateral financing. I think there is another dimension, which is the difference between the risk perceived by investors and the real risk observed in the data. To reduce this risk, notably in Africa, we need to have better database. We need to have probably credit rating agencies to engage more with the different African countries to dedicate more resources, and we have perhaps also to look in our own financial regulations to check whether it is really risk-based or if we can improve that to have a real risk-based approach. Finally, regarding debt restructuring, the qualitative elements you have mentioned— coordinated, fairness, efficiency, predictability— we need to improve in all that dimension. I think regarding the coordination, we have already something which works, the Common Framework, but it should cover middle-income countries. It's not the case yet. There is no consensus at the G20 level for that, but I think the Cebu Conference could help. We need also to improve the way we work with private creditors, and just a concrete example, There is no consensus yet for official bilateral creditors to publish the main terms of their debt treatments with borrowing countries. It's something where I think we should make progress in terms of transparency, and the CEE conference could help with that. Regarding the fairness of the debt sustainability and of the debt treatment, I think we have a tool, the Debt Sustainability of IMF and World Bank. There is a review ongoing for low-income countries, so I invite all of you to engage in order to have this tool taking into account a long-term perspective. Regarding the timeliness, which is a big issue, we clearly have done some progress in that regard. We have been much more efficient in the current situation with Ethiopia than what we did for Zambia, but we can do more, and for that we have probably to do some debt data reconciliation quicker. We should also look at the internal processes within each official bilateral creditor. We could probably do better in terms of agreeing the formation of the creditor committee and ensuring also that then when there is an NPV loss, it is well absorbed within our different institutions. And regarding predictability, we have an ongoing discussion within the G20 to provide more clarity, to publish information on the website of the G20 and the Paris Club. Just an example, a playbook was published last week in the context of the Global Sovereign Debt Roundtable. We are working also at the G20 level to complement that with a document describing the different steps with a focus on the Common Framework. So to conclude, I think that debt restructuring per se is not really a development tool, but it paves the way for new money, new loans to contribute to the development.

Thank you.

Thank you very much, William. Those are very, very important details. And since you are a member of the G20, I just wanted to ask clarity, because the people here are wondering We used to have the Paris Club and London Club, and now we have the Common Framework, and they've had so many things— the things that are working, the things that are not working— but what is very clear, the process is very slow. And they also realize that the Common Framework had some issues that also needs to be fixed, including what you just mentioned, including the middle-income countries, and also at least for them to stop paying the interest while you are negotiating. But the process, if you saw Ethiopia, Zambia, Ghana, and others, it's taking a long time. Now, have you sorted out these issues? And if you have sorted out these issues, because this one involves those that are concessional lenders beyond the Paris Club and non-Paris Club, but also the private lenders, have you resolved all the issues that are needed to make sure that the Common Framework really is going to deliver and how fast, how soon is it going to deliver? Because I was in Cape Town, I was in Johannesburg, and Wednesday and Thursday I was also in the meetings for the G20, so can you explain to the people here so they can go home being hopeful that something is being done and it's going to be completed soon?

You're right. We need to continue to improve; we are not there yet. In terms of timeliness, I want to be very precise and give some examples. For Zambia, between the staff-level agreement between Zambia and IMF and the agreement with the official bilateral creditors regarding the main parameters of the debt treatment, it took us 20 months— a very, very long time. For Ghana, 13— one, three— and for Ethiopia, 8. So of course, 8, we could say that it's too much, but just to give you an example that we are learning by doing, it's very new to have China, India, Saudi Arabia, the US, France, Japan, etc., together, and we see that this coordinated approach, of course, it takes some time for us to learn to work together, but I think we have made a lot of progress, and when I look at case, Sri Lanka, where there was no common framework. Sri Lanka has to engage with one official creditor committee on one side and with China on the other side. It took more time because there is this difficulty. But I agree with you, it's not enough. So I gave you some examples about what we could do better. I think we need to have our own user manual shared within official bilateral creditors in order not to reinvent the wheel for every case, so to be able to consolidate the technical points. I also think that, as I said, we have also to do our internal job in terms of being able to have internal domestic mechanisms to absorb net present value losses in order to protect our development institutions. And as an example, in France, we buy back the loan provided by the French Development Bank in order to ensure that the debt restructuring has no impact on the balance sheet of French Development Bank, so that this institution can continue to do its activity. This type of internal architecture, it's something which is not not in place in all countries. Of course, each country has to find its own governance. The French model is only one of them, but I think it's important. There is also the peer pressure, to be honest. I think it's right that we receive pressure. We have an architecture which works, articulated with an IMF-supported program. It gives a tempo. You have different reviews, and we have to to do progress regarding the debt restructuring at every step between each review. And I also think the example I gave you regarding being transparent in the terms of the agreement we have, when it is something requested by the borrowing country because he thinks that it will accelerate the negotiation with the private creditors, it's something on which we should work. There is no consensus yet, but I think we are making progress.

Thank you very much. I told you William is an expert. Now you can see how much— if I ask him another question, he would just download and tell you everything else, but we don't have that much time. Thank you so much, William. Now I come back to the Minister, now Gareth, Minister of Finance from São Tomé. What's your take from the issues that we raised here? and from what you've heard from your colleagues here on the panel.

Okay. Good morning to you all. Thanks, my friend. First of all, allow me to thank for the invitation and to thank the organizers for convening this important session at the time that it's most needed. Although you say that I may be the tallest in the room, but I come from one of the smallest countries in the world, only with 1,000 square kilometres. So although we are a very small country— before I move to the questions or to the answer for the questions, allow me to make a very brief context of my country. Although we are a very small country, we have made a bold and selfless choice committed a significant portion of our territory to protect vast areas of our forests, to preserve our biodiversity, and to act as a carbon sink for the benefit of the world. But this choice, of course, comes at a real and tangible cost for our people, because there are a lot of people that used to live from the forest.

agriculture.

And the entire islands, Saint-Tomé and Principe, the entire island of Principe is World Biosphere Reserve. Many areas in the main island, Saint-Tomé, are special reserves. Everything that you do there, it should be friendly to the climate. And yet, This sacrifice translated in ecosystem service while delivering critical global public goods to mitigate climate change. They are not recognized or are invisible in traditional metrics that govern international finance like GDP. So, turning to the frame question of these sessions. First, as the President of ECOSOC mentioned, stated earlier this morning, and I quote, we can only achieve what we can measure. So we need a new and bold metric for debt sustainability. For instance, São Tomé and Príncipe and other nations provide critical ecosystem services. Our carbon sinks and conservation efforts must be valued. Properly, official, and meaningful. So apart from that, concessional finance must be massively expanded and credit enhancement tools such as guarantee or insurance against climate risk— that should also be taken into account— be made readily available to reduce the risk premiums And by risk premiums, I mean country risk and currency risk. Second, debt service obligations should be reconsidered. Restructure should integrate debt-for-climate or debt swap for naturals. We already did that with Portugal. Part of our debt was— we had debt forgiveness to finance the climate projects. We are inviting all the other donors of Saint Thomas and the Princes and vulnerable countries to do the same. Third, we must strengthen and urgent the use of state contingent debt instruments, particularly those linked to climate shocks. Instruments such as climate resilient debt clauses that automatically suspend debt service In the event of disaster, can provide immediate fiscal space to us. Climate resilience, that clause should be automatic, not exceptional. So, I mean, in broad view, those are my answers for those 3 questions.

Thank you.

Thank you.

Thank you very much, and I think you will say something about— you wanted to say something after this, after, you know, after— yes, but I just wanted just to mention something, and this is very important because you are coming from the island states, and what we find that the issues on the island states are totally different. We, as United Nations Economic Commission for Africa, when it comes to carbon credit market, We are now, after doing the Congo Basin, and now we are— now after the Congo Basin, we are now coming to your countries. Now we are working on trying to help you in terms of that area, because whenever there is a climate issue, it affects you more than any other. That's why we are saying that you are more vulnerable than any other countries.

Yes.

All our efforts in terms of green bonds, blue bonds, the sustainability-linked bonds. I really yearn to see how to support you. The issues of loss and damage fund, which has not started, and other 80-something funds which are there, very difficult to really unlock for your own countries. How do you survive within that kind of situation? I just wanted to understand your own Take an example of your country. How much are you getting from climate resources? Because when you talk about the debt swaps and you know that the carbon is less than $10 per ton, when in other countries it's more than $100 per ton, how are you handling that? Just in summary form.

We are not surviving, we are struggling to survive.

Thank you so much. I think that's the answer which I wanted, just to alert everybody here that when you are dealing with island states, the story is different, and they need every help apart from mentioning numbers and the impact, really, which is affecting the entire tourism, almost wiping them off. They need special attention, and that's what we have seen. That's what we have learned from where we sit in Addis Ababa. But I think my sister wanted to say something.

Just a few reflections, and I think the interventions were extremely clear and rich with a lot of information. The first thing is that when we talk about debt management, sometimes there's no distinction between types of debt. All of us are talking about concessional finance and so forth, but when they're put into the DSA, it does not distinguish between what is commercial and what is concessional. There needs to also be a reconfiguration or some sort of matrix around types of debt within the DSA. That's number one. The second point is, and again, going back to the island cases today, given that when you spend on climate-resilient actions, you are actually providing a public good, and there is now talk and different initiatives on how that can also be internalized within countries' DSAs themselves. I think these 2 points can create a more convincing argument to the rating agencies that then go back and do the exercise of saying your creditworthiness is this or that. Those are 2 elements related to the DSA. Then, as we're talking about global public goods more and more, all of us understand what they are, but I don't think there's a proper quantification of what your contribution is in the global system. I don't know if that's— it's definitely not easy, but at least we can think about a few pointers and can spend some time on that. Also, policy-based lending was mentioned. Policy-based lending is extremely important if you're doing a development policy loan from the World Bank or from the African Development Bank or from others, but it does not get attention and is not given enough focus with rating agencies or around the narratives that take place, even though these policy-based lending go back to my initial point about policies that the governments take to improve macro fiscal resilience, to improve competitiveness and engage more private sector engagement. We also need to publicize a little bit more that policy-based lending are key and fundamental, and they are the ones that would open up financing for the private sector from the different windows. That are there in MDBs. These are just a few points that come to mind. Guarantees were mentioned, extremely important, and guarantees along with grants for the preparation of certain projects. But let's not forget definitions of public goods, advertising policy-based lending, and trying to figure out how we can actually, within the DSA, categorize different sources of debt, because that does not happen currently. Thank you.

Thank you very much, really, for mentioning even the credit rating. You know that the Africa Peer Review Mechanism is establishing an African rating agency, not to duplicate others, but to complement what also they are doing so that we can be able to support the member countries so that they can be rated properly. Thank you so much for all of you. I just wanted to bring in the civil society. Here we have Patricia Miranda. I don't know where she is. Patricia, can you go ahead?

Yes, I'm up here.

Yes, thank you so much.

Thank you. Patricia Miranda from Latin Debt, and I'm speaking on behalf of the CSO FFD mechanism. Global South countries continue to reel from multiple crises: a debt catastrophe, a sustainable development crisis, and a climate emergency. Interest rates in developing countries reach even 12 times the size of developed countries' rates. Prioritizing debt payment to avoid defaulting is achieved at the expenses of our own development and our people. There is a reduced fiscal space to finance essential services that are critical for gender equality and women's The ability of countries to access capital is a lot less and expensive due to credit ratings downgrades. In addition, tariffs war will increase bond costs with the risk of default in more countries of the global south. Developing countries are in a tsunami of unsustainable and illegitimate debts that the common framework has not been able to solve. To prevent this spiral of debt where low and middle income countries are trapped in, we need a fit-for-purpose debt restructuring and also access to concessional financing. Reducing the cost of capital in an effective manner can only be addressed under a coherent and rule-based approach to prevent a debt crisis through a UN Framework Convention on Sovereign Debt, where the following policies can be decided: a new approach of debt sustainability, that, beyond the capacity of payment, has the ability to identify the financial conditions that a country needs to achieve its national development plans; binding principles on responsible borrowing and lending that includes a principle to prevent harmful financial conditions; debt transparency, considering that debt opacity increases uncertainty and erodes investors' confidence; driving up borrowing costs. A public global debt registry and public access to information on financial conditions in all loans contributes to reduce the cost of capital. Finally, a reform of credit rating system with regulation and a multilateral agency in the United Nations that guarantees the independence and integrity of the credit rating process and improves the quality of the ratings issued. Multilateralism is at stake, and FFD4 is the opportunity to strengthen it. Thank you very much.

Thank you very much, Patricia. Thank you very much. Next, we have Her Excellency, the Permanent Representative of Eritrea, representing all the 54 African countries here Please go ahead.

Thank you, Mr. Chair. Good afternoon, ladies and gentlemen. I have the honor to deliver these remarks on behalf of the Africa Group. The Group considers the ongoing discussions regarding the current debt crisis and how it can be tackled in the lead-up to the 4th International Conference on Financing for Development are critically important. Africa's external debt rose from $436 billion in 2010 to $1.53 trillion in 2023. The cost of servicing external debt rose by 412% over this period, almost double the total external debt stock increase. Of the 38 African countries eligible for the Poverty Reduction and Growth Trust, the proportion with high risk of and in debt distress increased from 21% to 58% between 2015 and 2022. For 82% of African countries, external debt sustainability deteriorated between 2017 and 2023. In 2023, 90% of African countries were paying more in external debt service costs than the limit contained in the 1953 London Agreement. It is therefore crucial to outline concrete, ambitious steps in the FFD4 Outcome Document to reform the international debt architecture, including the proposals presented by the Group to create a multilateral sovereign debt workout mechanism aligned with sustainable development and the establishment of a global debt authority. Other proposals include reforming the G20 Common Framework, including by addressing the current imbalance between the costs and benefits of utilizing it. The current costs include credit downgrades, protracted negative economic consequences, and loss of access to financial markets. Such reforms could include expanded eligibility, inclusiveness, and debt relief mechanisms in addition to accelerating the process and implementing standstill on debt service costs. Addressing the role of rating agencies is also crucial, including through reducing reliance on their ratings for investment decisions and improving country data and debt management systems and institutional capacity. Technical assistance is also crucial to countries that do not currently have ratings to facilitate access to global financial markets. It is important as well to develop a separate rating process to prevent the ratings impasse from preventing countries from engaging in debt restructuring. Expanding the use of debt swaps is also effective where appropriate based on each country's circumstances. This would require transactional costs to be reduced and the development of a pipeline of projects

Thank you very much to the Permanent Representative of Eritrea representing the Africa Group.

Distinguished ladies and gentlemen, I think we'll have to cut it down to 2 minutes because there is a large number of people who want to speak. Next now, I call the Minister of Finance of the United Republic of Tanzania, my good friend, uh, Honorable Ngiguru, please go ahead.

Thank you very much, Honorable Chair, Excellencies, distinguished colleagues. We commend the ongoing efforts by multilateral lenders and international financial institutions to improve access to concessional financing and initiate reforms. However, Developing-oriented debt solutions, allow me to highlight these 3 issues. First one being prevention through innovation. We need broader uptake and institutional support to state contingent debt instruments, including climate-resilient debt clauses and GDP-linked bonds. These tools are after offering flexibility in times of crisis and can prevent debt distress from escalating. The second one being access to affordable finances, whereby credit rating methodologies must evolve to reflect the true creditworthiness of the developing country, where we encourage greater use of blended finance, Expansion of MDB risk guarantees and debt transparence initiatives to help reduce received risk premiums. The third one being restructuring with development in mind. Sovereign debt restructuring must be faster, more coordinated, and grounded.

Thank you very much, Honourable Minister. We are sorry that the time is always short. And we know that since you came from very far, you needed more time, but thank you so much for your statement. Asante sana. So next is the State Secretary from Portugal. Please go ahead.

Excellencies, Portugal welcomes this critical discussion. Despite significant efforts, many developing countries still face unstable debt burdens and high borrowing costs. Looking ahead, we face 2 critical scenarios. One scenario: developing countries divert crucial resources away from human development. This path will deepen global inequality, instability, and fragmentation pushing the 21st Agenda further from reach. Instead, in the second scenario, we succeed in reforming the global financial architecture to be fairer. Allow me to emphasize 4 proposals. First, strengthening debt transparency, particularly through streamlined debt basis managed by the World Bank. Second, supporting the 3-pillar approach of the IMF and World Bank for assisting low-income and vulnerable emerging market countries facing liquidity challenges. Third, providing targeted technical assistance, including the operationalization of the SEEDS debt sustainability support service for the Antigua and Barbuda agenda. Fourth, improving existing mechanisms' efficiency, such as the G20 Common Framework, and supporting a more efficient and wider application of such instruments like debt-for-development swaps, notably for nature and climate swaps, as appropriate. Today, the choices we make will shape global development.

Thank you.

Thank you very much. Thank you very much, Secretary of State from Portugal, and also for being on time. Thanks quite a lot. The next one is the Minister of State for Finance of Maldives. Please go ahead, Honourable Minister. Thank you, Moreta.

Across the developing world, debt has become increasingly unsustainable, not because countries are reckless, but because they are vulnerable—

vulnerable to shocks they did not create. For many Small Island Developing States, including the Maldives, debt is no longer seen as a tool for development.

We must change this.

Lowering borrowing costs is only meaningful if countries are not perpetually borrowing to survive. We need tools that prevent debt distress before it happens. That is why Maldives proposes a new approach.

Debt relief for resilience building.

It rewards countries for preparing, not just reacting.

It prevents crisis by investing in strength.

It is an approach rooted in fairness and foresight.

Forgiving debt linked to achievements in resilience building also reduces risks.

That means lower interest rates and better credit ratings. More importantly, it frees up resources, resources that can go to education, Outcomes.

It makes progress measurable. It builds trust between creditors and borrowers.

This is not just a one-sided solution. Creditors benefit too. They support stability, they reduce future defaults, and they show global leadership on climate and finance. The Maldives is ready to lead.

We are ready to work with our partners to reduce—

I'm sorry.

We are ready to work with our partners to recognize the value of—

Thank you very much, Honorable Minister from Maldives. The next is the distinguished representative of Mexico.

Excellencies, colleagues, public debt, when well managed, can and should be a catalyst for for sustainable development, and yet too many countries face high indebtedness as well as slow restructuring processes that are not very foreseeable and conditions of financing that reflect the imperfections of the international financial system instead of the reality of their economies. In order to improve the situation, we must act on multiple fronts. On the demand side, it is essential to strengthen macroeconomic and institutional frameworks, improve the quality of public spending, and strengthen the risk profiles. In terms of supply, it is urgent to improve the efficiency of financial markets as well as revise incentives that perpetuate risk premiums that are disproportionate for developing countries. However, we must be careful. Reducing the cost of capital should not mean imposing artificial ceilings for interest rates that could distort markets or put mandates for monetary stability at risk. We need a debt architecture that promotes responsible financing and responsible indebtedness in a fair and sustainable fashion. And in this context, we must expand the use of contingency tools and resiliency clauses in terms of the climate, supporting their adoption through technical assistance and the creation of capacity as well as standards in order to restructure the sovereign debt in a way that development is supported. The process must be supportive and efficient. Thank you.

Thank you very much, distinguished representative of Mexico. I give the floor to the distinguished representative of Brazil. Thank you.

Thank you, Chair. I'd like to thank the panelists for their expert and very engaging comments. Today, the debt crisis is perhaps the single greatest challenge for developing countries to achieve the SDGs. According to data from UNCTAD, developing countries servicing on public external debt reached $847 billion in 2023, compared to the $223 billion in ODA received that same year. That's not to mention other exporting of capital related to royalties, illicit financial flows. We find ourselves in a absurd situation where net capital flows are going from poor countries, from the Global South, to developed countries in the North. It's as if the poor neighborhoods in our cities were financing the high living standards of the rich neighborhoods. This is unacceptable and needs urgent redressing. My question is, how much political will exists in the developed world for solutions that go beyond the common framework? In the '80s and the '90s, we had the Brady Bonds in Latin America that, thanks to strong political leadership, led to durable solutions, and in the '90s, we had the HIPC Initiative, the Highly Indebted Poor Countries. My question is, does this political will exist today, or will our discussions limit ourselves to improving a common framework and other palliative solutions? Another very crucial issue that was raised by the civil society, which we support, support is to bring these discussions to the United Nations through ECOSOC and to our General Assembly to have discussions on the creation of possible debt solution mechanisms within the UN.

Thank you very much.

Yes, thank you very much to the distinguished representative of Brazil, and I now give the floor to my brother, the Permanent Representative of Angola. Angola this year is the chair of the African Union. in Africa. Thank you so much.

Thank you, Chair, for giving me the floor. Angola aligns itself with the statement delivered by Eritrea on behalf of the African Group. Like many developing countries, Angola continues to face high debt servicing burden and significant borrowing costs that undermine the fiscal space needed for sustainable development investment. Despite the strong progress in implementing fiscal and structural reforms, We recognize that the current sovereign debt architecture remains inadequate in ensuring fair, timely, and development-oriented solutions. Under the National Development Plan 2023-2027, we are committed to strengthening debt management, diversifying sources of finance, and adopting innovative instruments, including climate-resilient debt clauses. We encourage further adoption of state contingent instruments, particularly those linked to climate shocks, as tools to build fiscal resilience. We also call for faster and more coordinated sovereign debt restructuring mechanisms that support long-term development goals. The FFD4 Conference offers a unique opportunity to recalibrate the global debt the system towards one that is equitable, transparent, and aligned with the SDGs. Angola stands ready to contribute constructively to these new and far-reaching consensus. I thank you.

Thank you so much. Thank you very much, my brother. And now, sorry, the time is not on our side. We are giving now the floor back to the panelists. in 1 or 2 minutes to be able to respond to what— from the statements of the ministers. Let me start from William. Please go ahead.

Thank you. Thank you very much for this opportunity to respond to some points. Perhaps to be very direct with you regarding a new mechanism, regarding debt restructuring. I am not convinced. I understand that it is a debate, but I have the feeling that we have already in place something which works. It should work better, but it works. You are all shareholders of the IMF, of the World Bank. We have an architecture which provides low-cost and concessional finance, which put in place a debt sustainability framework which is just at the boards of these 2 institutions. We have a tempo given by the IMF-supported programmes, the different reviews. It should work better, but I have the feeling that we have already the expertise of the international financial institutions, and if there are suggestions to improve the way it works— and I have given you some examples— we are ready to look at that, but building something completely outside, I'm not so sure that it will accelerate the debt architecture. Second point, regarding the new HIPC initiative, it was a question raised by Brazil. We ask regularly the question to IMF and World Bank experts, do you think that we are today in the same situation as we were just before the High Indebtness Poor Country Initiative? It was the answer. The answer is no. Yes, there are a lot of debt service issues, and I fully recognize that. But the reality is that if you look at the level of the debt, we are not there yet. But is it a risk? Yes, I agree. It's a risk. Et pardon, j'ai oublié de parler en français. Et mon dernier point, c'est que.

When you work on the issue of vulnerability, you've carried out a great deal of work on the Multidimensional Vulnerability Index, and it has to be promoted in multilateral institutions. I think it's an important point for everyone, as well as putting value on the ecosystem services. Which is provided by the forest or other natural elements. But you have to have a financial tool associated with that. And with the Paris Accord, we have a tool for that. Now we have to integrate that in the vulnerability index. To conclude, I agree with those who say that we need to improve the existing architecture, but I ask you to look at the proposals that we have under the various drafts of this new architecture.

We have just negotiated a very big deal that after the Minister's presentation, we are going to take 3 more statements from China, Cuba, and Indonesia. Please go ahead.

Okay, thank you. Well, I think that most of the ministers or distinguished delegates that did the intervention One thing that all of them has in common is most of the countries is already in high distress, debt distress. Although William said that by the time we got the debt forgiveness through the EPIC, we are not at that level yet in terms of debt-to-GDP ratio, but in terms of the climate change, we are already there. So I think we need to wrap up I think we need to speed up. For countries like São Tomé and many other countries that provide ecosystem services, we need to bring it to the GDP. Okay, I will reiterate, as the President of ECOSOC stated this morning, we cannot achieve what we cannot measure, so bring it to the GDP in order to make the debt-to-GDP ratio Even lower. Even lower. So the other important thing is that debt swapped for climate finance, it's a form of debt forgiveness. Instead, we divert the resource away to continue to pay our debt service. We should use it to invest in climate resilience infrastructure. So those are my main remarks regarding the debt forgiveness and that new solution for financing.

Thank you very much. Also, debt swaps for climate, meaning that the climate has to be measured properly so that it's not just below $10 per ton, as we mentioned before. Now, let's go to the distinguished representative of China.

Thank you, Chair. At present, global economic growth has been sluggish. The imposition of US tariffs has further undermined global economic and financial stability. This is more than a debt issue and it is more a developed issue. Therefore, the international community needs to thoroughly assess the debt difficulties of developing countries and address both symptoms and root causes so as to find more equitable, effective, and sustainable debt Solutions. It is important to promote reform of the MDBs, advance the shareholding reviews of IBRD. According to World Bank data, multilateral and private creditors account for more than 80% of Africa's sovereign debt. We call on developed countries and IFIs to shoulder their responsibilities by fully joining in debt treatments based on the principle of common action and fair burden, What are China's concerns to help ease the debt burden on developing countries? China has been doing its best to help developed country— developing countries alleviate their debt burdens. We fully implement the G20 DSSI, the common framework, relieving the largest amount of debt among G20 countries. China has been actively and constructively participated in the debt treatments of some countries. We will work with all parties to find comprehensive and systematic solutions to the debt issue to support the implementation of the 2030 Agenda. your agenda. Thank you.

Thank you so much. Thank you very much, distinguished representative of China. Now let's go to Cuba. The distinguished representative of Cuba, please go ahead.

Thank you. The issue of sovereign debt has been characterized by the lack of principles or common fora in order to negotiate it. There is no institutional configuration that is permanent and has global reach to coordinate action between those who are in debt and those who provide the financing. Therefore, the system is fragmented and it is unequal. A system to deal with this issue that has both creditors and those who are in debt, that allows for debt consolidation, that provides better incentives for creditors to participate in restructuring can make the existing architecture more helpful for developing countries that face sustainability challenges when it comes to their debt. The IMF and World Bank proposals to reform the international architecture when it comes to sovereign debt have been limited fundamentally to improving the contractual framework as well as transparency indexes but they do not boost the creation of common norms, nor do they limit bad behavior from creditors. Multilateral initiatives have significant limitations that involve only one part of the debt. They bet on the goodwill of private creditors that refuse to cooperate manifestly and do not solve the problem of overindebtedness. They postpone it. and they overestimate the serious repercussions of a worldwide debt crisis. They do not include universal principles and generally they favor creditors, which harms those that borrow money. Initiatives to regulate sovereign debt that come from creditors have shown that they are partial and insufficient. Thank you.

Thank you so much. Thank you very much. And just finally, let's have the Distinguished representative of Indonesia, please go ahead.

Thank you, Chair.

Indonesia calls for the strengthening of the global debt architecture through institutionalized mechanisms for liquidity support and liability management. Predictable, rules-based, and inclusive systems are essential to ensure sovereign debt challenges do not spiral. Indonesia championed this during its G20 presidency. The G20 Bali Leaders' Declaration expressed concern over deteriorating debt in vulnerable middle-income countries and emphasizes the urgency of coordinated action by all creditors, official and private, alongside greater transparency. Preventive debt measures are key to building resilience. These include financial instruments and policy frameworks that address fiscal risks before they materialize. Indonesia has long prioritized sound debt management, maintaining a prudent debt-to-GDP ratio while diversifying financing sources, balancing domestic and international concessional and market-based instruments. One critical step to lower borrowing costs for developing countries is the reform of credit rating agencies.

Credit rating significantly influences access to and cost of capital.

Reform should focus on, one, expanding methodologies beyond fiscal metrics to include climate vulnerability, human development indicators, and SDG investment needs.

2, diversifying the credit rating ecosystem by promoting regional and independent agencies that better reflect developing country context, moving beyond Western-centric paradigms. Lastly, even with strong preventive measures, Crisis demand timely and structured debt structurings. The COVID-19 pandemic revealed the limitation of existing mechanism.

Revenue collapsed while expenditure soared, leaving little room for essential public spending.

Initiatives like the debt—

Thank you very, very much. Thank you very much. Colleagues, we know that there are many countries that have not spoken. And they are going to be prioritized for the next session that is going to follow immediately after this one. And that will start with the host country of Ethiopia, is going to be number one, followed by so many other countries. And for those of you who won't be able to be here, you can also post your e-statements to the e-statements for posting on the website. So for this now, I just wanted just to Really, I don't know how to summarize this, and I won't attempt to do that, but the issues that have been raised are really trying to see how we can— what we can do to improve our domestic resource mobilization, bring in the informal sector, improve the capacity, and also make sure that we digitize the entire financial sector— I mean, the taxation sector— and plus, of course, the development of our capital market, which has been raised by our panelists. The next is innovative financing mechanisms. The current way of financing is not enough. We need to find alternative and also improved way of mechanism that can help us in terms of increasing our resources. Third is the debt restructuring, which has been emphasized many, many times. We need to come up with a formula. We need to address the existing challenges, and I think this has been well explained. There is progress that is being made, but there is still more to be done because many countries are really suffering at the moment. The other issue is the credit rating, the support that we need to give the developing countries so that they can improve their rating as well as to get the cheap resources in terms of borrowing. And finally, we need to have a proper measurement of the carbon. It's not acceptable that the same carbon in one region is way cheaper than the carbon in another region, yet we are talking about addressing the issues of climate. So this is very, very important and this has been well highlighted. But I also wanted to emphasize that as we do this, there is prioritization of the island states. They face a different challenge altogether. And I think inasmuch as we do this, the urgency is very, very important. I want to thank really our panelists definitely who have been here, and who has given us quite a lot. Our sister Anya has just left, but also William and Gareth, thank you so much. The next time that we meet, I always tease him, either I'm too short or he's too tall, so either way, always good to see you again here. Thank you so much, and thank you very much, Chair, for helping us in terms of having this session. Thank you so much.

Thank you. Thank you very much, and let me also— Let me also join in thanking our guests for their presentations and to you, McLeod, for your very effective chairing of this discussion. We are going to move quickly if we can, so I'll ask the members to leave the platform and ask the other panelists for the second fireside chat to take their seats. And again, let me ask you all, the rest of you, to remain seated. I know this will have no impact whatsoever on your decisions in that regard, but I'd like to ask the new panelists to come forward, please, and join us on the platform. I will be leaving you for the press briefing, and my successor and friend will be Ambassador Thapa from Nepal.

Thank you.

Yes, but what is—

how do you think to conduct here? It will be like a major question or—

No, no, but how should I speak or it will be a very formal discussion?

No, it's because I was not here before, so I didn't see.

I'm just asking.

Oh, okay.

Okay, okay, just to know.

Okay.

Thank you.

Honorable Ministers, Excellencies, distinguished delegates, we'll now hold the Ministerial Fireside Chat 2 on Mobilizing Private Investment to Drive Impact. I'm pleased to welcome the distinguished presenters for this discussion. And this Ministerial Farsight Chat will also be moderated by Mr. Clever Gatete, Executive Secretary of the Economic Commission for Africa. Before turning the meeting over to the moderator, I remind the participants that, as with the first Farsight Chat, there is no pre-established list of speakers for the interactive discussions. Delegations may signify their interest in intervening by pressing the microphone buttons. Due to the limited time available, the time limit for the interventions will be 2 minutes, and the microphone will be automatically deactivated once the time limit has elapsed. With this, now I turn the meeting over to the moderator. I look forward to an open, constructive, and productive exchange of views. Mr. Gatete, you have the floor.

Thank you very much, Chair. People may be wondering why I'm moderating this one the second time. I'm being punished for leaving New York from member countries now to join the Secretariat, but that's normal. Thank you so much. Here now we have also another very interesting panel. Mobilizing Private Investment to Drive Impact. Here, we have 3 panelists. We have His Excellency, Mr. Josef Sikkela, Commissioner for International Partnerships, European Commission. We also have Her Excellency, Ms. Diana Janssens, State Secretary for International Development Cooperation from Sweden. We also have Her Excellency, Ms. Tatiana Rosito, Secretary for International Affairs, Minister of Finance from Brazil. These are the ones who are going to tell us, to give us solutions on how to mobilize the private investment that will drive the impact. The key question here in this session will really explore the key barriers to private investment in sustainable development and the policies, partnerships, and financial instruments needed to unlock greater capital flows. But before that, this is just— want to make sure that everybody understands why we are going to the private sector. Government resources are never enough, especially nowadays. They are not enough to drive the development to achieve the Sustainable Development Goals. We need private sector investment, and if we need the private sector investment, we need to address the issues that they face. We need to put policies in place. We need to create an enabling environment that would really be conducive for private sector to invest. We need to look at the regulatory reforms that we have in place and what we need to change. We also need to put in place the de-risking instruments that are going to help the private sector to actually do the right investments that we need. Is what steps need to be taken to make blended finance more effective in attracting private capital that maximizes sustainable development impact? Lastly, what actions or incentives can countries take to align investment with the SDGs, accelerate sustainable development investment strategies, and deploy innovative financing instruments to mobilize resources for the SDGs? Now, let me start with Mr. Josef. Ready to give us your take on this?

Well, let me start with figures. As a former banker, I always like figures. Our current gap on delivery on Sustainable Development Targets is around $4 trillion. $200 billion, the worldwide contribution on development assistance annually. Here Europe has been always by far the biggest supporter with 42%, which is basically a very nice portion with only 16.5% of the share on the global GDP. The important messages are that to close the gap we urgently need to mobilize more private investments and this is feasible because $4 trillion looks like amounts we cannot imagine, but only the 3 biggest asset managers on this planet represent more than 20-24% trillion of assets under management. Europe has been the biggest provider and will remain to be a sustainable and trusted partner in the game. The upcoming FORCE International Conference on Development in Sevilla is a very important moment to come with the new approaches and basically to prove that the multilateral system can deliver tangible solutions also in unsecure times. And I think that we will be able to deliver and one of the needed conditions is that we institutionally will be able to create investment-friendly conditions with our partner countries in order to attract more private investments. But it means that we have to more focus on, like, concrete deliveries. Job creation is basically the most important thing because we will see just in Africa in 5 years more than 50 million young African people to enter the labour market. If we talk globally, we understand that we have 1.2 billion jobs needed and we have currently only 400 million available, so job creation value creation on spot, investments in sustainable economy, economic development are of utmost importance. Business will move there where it will find appropriate conditions. We can help them to create them together with the administrations of our partner states and with de-risking of our approach with blended financial instruments and with more support. And this is, in our way— our eyes, the way we have to go. And we must go this way because, as Aristotle has once said, the poverty is the parent of revolutions. Expressed in today's world, it means that less development means more global instability, and instability is always something which is not extremely business-friendly, and we need more predictability and more stability. Therefore, I believe this is the right way to go.

Thank you very much. Now, talking about de-risking, we have so many— apart from the blended finance, we have so many instruments, especially guarantees from European Union, There are about 3 from the World Bank, ISREF and IFC combined, and there are so many from the African— there is also the African Development Bank and the rest of it. How do we make these de-risking instruments available to member countries?

As I said, the US is the 16th destination I visited since my appointment. So I am travelling in partner countries, I am visiting the member states in order to align with the governments in our member states and of course I am trying to fulfil the institutional duties. But when I am visiting our partner countries in other continents, they are asking, when you will come with the new investments? And I am telling them, and when you will start with the reforms? When you will change the local laws? When you will create more investment-friendly— and we can help you. We can help you with the e-governance. We can help you with the digitalization. We can help you and we are ready to help you with the data protection, but there is also the part of work on your side. And we can help you on our side. We can create on our side basically instrument which will multiply our public sources of wood. Because for the grants I can provide, I will get a 10 times multiple from the European Investment Bank with the whole firepower we have here, but of course their guarantee frames can be multiplied up to 15 times. And basically, this is basically the way, but for this we need concrete projects where we see that we deliver on what I was mentioning earlier, on job creation, on connectivity, on allowing the countries access to world markets in proper sustainable transport investments and in the value creation on spot, but not only investments in the hard assets but investments in the future, in healthcare, in education, and in mainly know-how transfer.

Thank you very much. Indeed, you are right, there has to be reform, otherwise the de-risking cannot take place. Thank you so much. Now, let me turn to Tatiana.

Thank you very much. It's an honour to be here in this important forum today. From the standpoint of Brazil, I would like to tackle also financing for development and private capital mobilization. From a special angle today, climate finance, I think, especially this year, we have a momentous opportunity to scale up climate finance on our way to COP30, and in particular with the collaboration to build up the Baku-Belgrade roadmap for $1.3 trillion. But let me go first one step back. We want— our aim is to— Mr. Sikl already gave us some numbers on the need for private capital mobilization. We know that for sure, especially in the climate area, although we have trillions actually more than $100 trillion in available money from the private sector, and we have a very strong and compelling case for growth stemming from transformation, green transformation, energy transition, and nature-based solutions, only about 10 to 15% of private capital actually go to emerging markets and developing countries. No matter what we do, this number is there, usually doesn't move too much. We need to move this needle up. I think the good news is that we do have not only the investment, a compelling investment case for that, but we also have a very important opportunity this year of coming together through, including in Financing for Development Conference, and then all the way to COP30 to get together and build the conditions, build the roadmap. I would like to say that this rests on 3 main assumptions. First is the reform of the international financial architecture. Second is regulatory improvements, regulatory improvements in the international financial system, that will ensure a level playing field for private capital to move to developing countries. The third main axis is also domestic conditions and having the enabling environment. Now, a very important part of this agenda is always country ownership, so we really need that the countries are at the front seat in establishing their NDCs and their own transition plans. Now, the part— the international financial architecture, we have— I think the diagnosis is really, to the largest extent, known. We know what are the hurdles, we know what are the barriers, But we still need to have more of these opportunities to convene together and move forward with our commitments and the narrative for reform. I mean reforms of the multilateral development banks that will help crowd in more private capital. We also need to move on with optimization and expansion of vertical climate funds, and also of concessional resources. Concessional resources are of the essence for the de-risking that we need to do, so we need more commitments on catalytic capital for that. We can also use instruments such as country platforms, whereby local and global finances are not only matched, but are linked and connected through second-generation platforms led by own countries and actually pushed by the idea, the vision of our own country's vision for our transformation and the fulfillment of our own NDCs. Another area itself is the private capital mobilization that will benefit a lot also from transformations in the regulatory system. We're talking here not only about moving ahead with interoperability of carbon markets and taxonomies, but also making sure that the regulation, the prudential regulation and the supervision regulation, ensures that projects in developing countries will be correctly assessed. in terms of risks, and so that we can have these flows flowing. We are talking more specifically here, I think we have— I will conclude with that, I know we have a limited time. In Brazil, and on our way to FFD and COP, we have just launched, at the invitation of the COP30 President, Ambassador André Corrêa do Lago, a circle of finance ministers for the COP30. Where we'll engage and mobilize on this agenda that I have just described. It's not a negotiating group at all, it's a mobilization and engagement group. We'll continue to interact with international organizations, with the private sector, with experts that have been dealing with all this investment case and the numbers for where we want to get there, and civil society, so we can build, really use this opportunity, this point and build a Baku to Belém roadmap for 1.3 that will express correctly in a feasible way, with also feasible and practical actions, how we are going to mobilize money from 1.3 trillion led by developing countries to developing countries. countries by 2035. Thank you.

Thank you very much for that. I think information that is very critical for all of us here. Now, let's go to Diana, please.

Thank you, Under-Secretary-General, and it's really a pleasure to be here today. It's interesting times for sure. Fast changes, profound uncertainty all over. I will start with one observation, a simple but still sobering one, and that is that about half of global ODA funding will be gone by the end of the year due to major cuts by big donors. Multilateralism and our joint values are are being challenged daily. And in this context, I think this opportunity to get together for the Financing for Development Conference will be important to deliver on also in this geopolitical context. And it might not be surprising, but I will follow on the line of the Commissioner and the State Secretary. We really need to step up when it comes to mobilizing additional funding, both from the private sector and from domestic resource mobilization. My government has initiated a reform process to strengthen the synergies between development cooperation and trade, with the aim of reducing trade barriers, be it on local trade, regional trade, global trade. We see that, properly used, the ODA funding we do have can be a very efficient catalyst in mobilizing additional private resources for sustainable development, but we just have to be honest that ODA cannot and will not be the main answer to how we will bridge this enormous financial gap when it comes to meet the Sustainable Development Goals. I think we have doubled down on innovative financial instruments and partnerships, so I will give a few examples on how we have been quite effective in mobilizing private capital. It's credit guarantees that to reduce financial risks for private investors and challenge funds to co-finance innovative solutions. We have in this way mobilized $3.5 billion by the end of 2024. I have 2 other good examples. It's how we use credit guarantees to promote private investment for renewable energy and energy efficiency. Efficiency, which in itself also then catalyzes growth. In this, we've done in Sub-Saharan Africa, we're focusing on or helping create sustainable business practices. One example is in Bangladesh, where we collaborate with Swedish textile companies for a green transition in the textile sector, enhancing sustainability and supporting local entrepreneurship. And last year we signed the biggest guarantee to date. It was with the Inter-American Development Bank for the Amazon biodiversity. And in this way, we have managed to enable half a billion US dollars in mobilized capital. And that is quite something. And we also work with guarantees in Latin America, Sorry, also in Asia, lastly. This is how we want to go forward and expand this kind of work. I want to go back to what both of you touched upon as well, and that's what's done on the national level in developing countries. We know for a fact that private investments, for them to flow, we need the right conditions, in place, and we also need a clear probability of return. And for this, we know that strong institutions, rule of law, and anti-corruption measures are absolutely crucial. Corruption hinders development, tax evasion do, money laundering, organized crime, etc., etc. I mean, the drive for reforms on a national level, it simply has to be there, and it can only be done on a national level. But with that, and hand in hand with innovative ways and using ODA financing as a lubricant in this machinery to attract other resources, it can be done. Yeah, I stop there. Thank you.

Thank you very much. Thank you very much. Now you've heard enough material from our panelists. Let's go now to the representative of the civil society, Mrs. Eppo Protheria, representing the Asia-Pacific Forum on Women, Law and Development. Please go ahead.

Thank you, Chair. We are delivering this response on behalf of the CSO FFD mechanism. We believe FFD4 offers a critical opportunity to reach political agreement on a renewed approach to the role of private finance in development. 10 years after Addis, there is ample evidence that the billions-to-trillions approach to development has not delivered on its promises, both in quantity and quality. This agenda has posed significant risks to gender equality, women's human rights, the reduction of economic and social disparities, and to ecological integrity and climate action. We demand FFD4 must not continue with this failed approach. Private finance can play a role in supporting countries to advance the 2030 Agenda, but there is a need to reaffirm the role of evidence-based approaches and uphold the regulatory role of states, ensuring alignment of private businesses and finance with democratically determined national development strategies and priorities. An overreliance on de-risking strategies overlooks the diversity of private sector actors, how they should be supported, and their linkages to the much-needed structural transformation in the Global South. We reiterate, the latter is the only way of moving away from commodity aid and debt dependencies. We call for a UN intergovernmental process to review the sustainable development impacts like the environment, fiscal, labor, and human rights, especially women's rights, impact of financing instruments established to leverage private finance. This process should determine the most appropriate toolkit of policy measures to regulate private investments in the public interest. And lastly, we call for ring-fencing of social services like healthcare and education from market forces to ensure universal access and above all, the fulfillment of human rights.

Thank you so much.

Thank you very much, Eppo. Thank you very much. Now we go to member states. We'll start with the Honorable Minister of Finance of Lesotho, my good sister. Please go ahead.

Thank you.

Thank you, Chair. Let me also thank the panelists for setting the stage for us. The issues that we're discussing today are very interrelated, so as much as I want to talk about private sector partnerships and investments, I'll also touch on the others as well. We are speaking about private investment and evaluating it in the face of a landscape of significantly different trade environment in the face of low ODA flows and possible economic exclusion if these are left alone. Obviously, private sector investments and capital is most important for development, and it is imperative and very important for us that as we look into what options are there for us to move forward, we look into climate investment, climate reforms that we are undertaking. We have to accelerate the pace, but more importantly, we need strong institutions and regulatory reforms within our jurisdiction. To be able to accommodate these investments, it is very important for us to look into how we de-risk investments as we look into the environment within our jurisdictions as well. And many many instruments are there for for de-risking investments. We have talked about blended financing, but more importantly. Obviously, we have other trade incentives, but I want—

Yes, thank you so much. Time is not always on our side. I know that for someone who has been a governor and Minister of Finance, there is so much that you can give, but thank you so much for this. Unfortunately, time is not on our side. It's only 2 minutes. Next is the Minister of Planning. and international cooperation of Guinea. Thank you very much, my brother.

On behalf of the government of the Republic of Guinea, I would like to thank the leadership of the Commission and the meeting today. Innovative additional financing from all sources whilst recognizing the various comparative advantages is of extreme importance in Guinea. Strengthening our economic capacity, our infrastructure, our human capacity is at the core of our policies because we want to meet the legitimate aspirations of our people. Guinea today is beginning to implement a project on responsible sustainable development between now and 2040. We are trying to attain this objective. It's important also to talk about the restructuring of OECD because today we are in Category 7, many of us on the African continent, but we hope there is much more transparency on that in future. It's important for us to increase our access to concessional financing, to have technical support, but also the change of the international financial architecture. We need international partnerships, and if these things are in place, we need to transform the situation and make sure that people live better. This is a spirit with which we will be working with you to ensure that our conference is a successful one. I thank you.

Honorable Minister, I can really say that Guinea has a lot to offer for private sector as you are doing your own comprehensive reforms. Thank you so much. Next is my good friend, Minister of Finance of the United Republic of Tanzania. Honorable Ngiguru, please.

Thank you.

Thank you very much, Chairperson, Excellencies, delegates, ladies and gentlemen. Unlocking private investment is crucial for achieving the Sustainable Development Goals. At the national level, under the leadership of Excellence Dr. Samia Suluhu Hassan, our President, Tanzania has focused on strengthening fiscal sustainability, ensuring transparent policies, and expanding affordable finances for women, youth, persons with disabilities, and SMEs. Globally, we call—

Can you please talk on your microphone?

Thank you.

Globally, we call for a greater alignment for private investment with the national priorities, enhancing international cooperation and the establishment of support institutions like National Investment Support Centre for LDCs. To make blended finance more effective, It must be prioritized as sustainable development outcomes. We urge reforms to credit rating methodologies, creating and creation of mechanisms aligned with the national plans, better risk-sharing tools, and standardized instruments to ease replications. Domestically, Tanzania is developing sustainable finance strategies, thematic bonds and leveraging digital innovation to mobilize resources. We are also working to establish diaspora investment frameworks and promote investment in sustainable and climate-resilient infrastructure. Together, we must strengthen investment facilities, platforms, and connect opportunities to global capital direct impact investment and ensure no one is left behind. Thank you.

Thank you very much. Thank you very much, Honourable Minister. Again, Tanzania has so much to offer and I think it's one of the destinations for investment. Thank you so much. Now, let's— I'd like to give the floor to the distinguished representative of India. India, please.

Thank you, Chair.

India welcomes this important discussion on mobilizing private investment for sustainable development.

While private business and finance are vital drivers of economic growth and job creation, their full potential in supporting sustainable development remains untapped. At the national level, creating an enabling environment is critical.

Governments must streamline regulatory processes, strengthen legal protection, and offer fiscal incentives for sustainable projects. Public-private partnerships are essential to reduce the perceived risk of private investment and ensure capital flows to sustainable initiatives. Supporting microfinance institutions to expand credit for small businesses and MSMEs will further foster inclusive growth. On the global level, urgent reforms to the financial architecture are needed.

This includes capacity building to design and adopt innovative financial instruments aligned with country objectives.

Measures such as de-risking tools, credit enhancement mechanisms, concessional financing, and guarantees are essential to lower capital costs in developing countries.

Local currency financing must also be prioritized to mitigate exchange rate risks.

Addressing the procyclicality and stickiness inherent in sovereign ratings assigned by credit rating agencies is critical to enable increased private capital flows to developing countries. On blended finance, blending philanthropic and concessional finance and developing innovative instruments tailored to country-specific needs can drive investment in critical areas like health, education, climate adaptation, disaster management, and resilient agriculture. In conclusion, targeted incentives, effective policy frameworks, and strategic partnerships

Thank you very, very much, distinguished representative of India.

Now, the next is the Deputy— Honorable Deputy Minister of Finance of Zimbabwe. Please, you have the floor.

Thank you, Mr. Moderator, for the opportunity to contribute to this timely dialogue on mobilizing private investment to drive impact. Mobilizing private investment has become an urgent imperative in the global effort to achieve our SDGs and drive meaningful impact at scale. As we gather here, the spotlight is firmly on the vast funding gap that persists, estimated in the trillions of dollars annually, between current resources and the investments required to meet the 2030 Agenda. Now, while ODA and public resources remain vital, they are insufficient to bridge this divide. The private sector, which already generates 90% of jobs in developing countries and serves as a powerful engine for economic growth, innovation, and poverty reduction, must play a central role in financing sustainable development. Recent trends underscore this necessity. Foreign direct investment now far outpaces ODA. Global capital markets are estimated to hold between $100 trillion and $300 trillion in assets. Representing a transformative opportunity, even if a fraction is directed towards impact-driven initiatives. Unlocking this potential, however, requires more than capital alone. It demands robust policy frameworks, innovative financial instruments, and cross-sector partnerships to align private incentives with sustainable development outcomes and ensure that investment truly drives impact where it's most needed. Private investment offers dual benefits: fresh capital expertise and innovation alongside sustainability and scalability. Yet we face complex global challenges and overlapping crises. In today's challenging landscape, private investment needs a seismic shift, not incremental tweaks or modification, but bold transformation. We must reinvigorate investment approaches to tackle current challenges and future uncertainties head-on. I thank you, Mr. Moderator.

Thank you very much, Honourable Minister David Munangagwa, for your good statement. Thank you. Now, let's go next to the distinguished representative of Bangladesh, followed by Liberia, who is the last one. Thank you.

Thank you, Mr. Moderator, and also many thanks to the panelists for for their enlightening deliberations. As we aim to make private investment more impactful, we need to expand support for innovative financing instruments. Creating an enabling ecosystem through appropriate policies, blended finance tools, and de-risking mechanisms is critical. In this context, we must recognize the potential of social business, which Bangladesh has great experience to share. Social business, pioneered by Professor Muhammad Yunus, offers a model where investment seeks not personal gain but social impact while ensuring financial sustainability. In this model, we encourage businesses to reinvest in their profit in future projects. Through this model, Bangladesh has demonstrated how private resources can be mobilized to empower women and vulnerable communities, as well as addressing critical challenges in the food security, health, education, and renewable energy sectors, among others. Our experience has shown that social business brings financial inclusion. Its purpose-driven outcomes offer a viable alternative to purely charitable or purely profit-maximizing models. We stand ready to work with all partners to mainstream social business approaches in the Global Financing for Development agenda.

Thank you.

Thank you very much, distinguished representative of Bangladesh. Now I will give the floor to the distinguished representative of Liberia, followed by Uganda and then Uruguay.

Thank you so much, Mr.

Chair.

First, Liberia aligned with the statement from the African Union asking for assistance to ensure that there are clear credit ratings across Africa to ensure that there's access to financing. On the line of private capital, the government of Liberia, through the National Development Plan, set a special theme on private sector discussion and private sector alignment. In our approach to this process, the Government of Liberia recently had what we call donor partnership conference, including private sector, where we were able to identify strong linkages between private capital into the national development financing. On this note, we've had what we have now as independent Public-Private Partnership Committee to finance our development architecture. We are also interested in coordinating with global partners, including the multilateral institutions, to ensure that private capital invested across Africa, across the globe, have an opportunity to ensure, to effect what we call de-risking instruments that will help to attract more private capital. On the debt sustainability side, we currently face debt constraints of almost 18% of our budget going towards debt payment. On this note, we are asking for low-cost private capital opportunities to improve sustainability into our financial architecture. Strengthening our regional financing approach is one local approach we want to look at. including the support from the African Development Bank, the World Bank, and also using regional funds including ECOWAS and EBA Bank. To establish a formalized global debt restructuring system, Liberia is currently working with a partner.

Thank you so much, Honourable Minister from Liberia. I just want to inform the audience that Liberia launched their long-term planning strategy for up to 2029 2 weeks ago, so they need more investment, especially from the private sector. Thank you so much. Next is my neighbor, Uganda. Distinguished President of Uganda, please, you have the floor.

Thank you, Mr. Moderator. I would also— Uganda would also like to join other colleagues in thanking the panelists on their insights, and we align our statement, our remarks, to the statement delivered by the distinguished representative of Eritrea on behalf of the African Group. Mr. Moderator, we think there is a linkage between this discussion and the earlier one on lowering debt burden through lowering of costs for most of our countries, which is so needed in investments in infrastructure such as energy, such as roads, and other social infrastructure that is required in order to attract investments from the private sector. And this is extremely important because if we are to talk about SDG number 8, which talks about economic growth, inclusive economic growth and job creation, then investments in infrastructure are extremely important. Of course, there is need for an enabling environment for the private sector in order to be able to undertake these investments. Uganda, under the leadership of His Excellency President Yoweri Museveni, has prioritized attraction of FDI, and we are having a number of projects in which the government is partnering with the private sector to undertake some of these projects in renewable energy, in roads, and also in education and health. So we believe that through such initiatives, the private sector can be motivated to contribute to industry.

Thank you very much, and we thank Uganda for really hosting this year's Africa Regional Forum for Sustainable Development after hosting NAM and G77 last year. Thank you very much. Next is the distinguished representative of Uruguay.

Thank you very much, Moderator. For Uruguay, it's an honor to participate in this dialogue in a key moment to accelerate the implementation of Agenda 2030 and the SDGs. Today, we face an urgent challenge to increase the financing of global public goods like climate financing without forgetting 2 essential principles: additionality and efficiency. Private resources must complement and not replace public funding, generating real impact in developing countries, including those that are not attractive for financial markets. We also consider that it is key to use blended financing. Private investment will not flow if we do not reduce risk. It's important to improve instruments such as guarantees, insurances, private funding, and measures to mitigate risk with a more active role of MDBs. Uruguay works to build an institutional architecture which is solid and predictable that stimulates an attractive environment for investment. We have clear roles, public-private dialogues, and a roadmap for a sustainable sustainable transition. One example of that is that the energy mix of the country is 95% renewable. In the same way, our regulatory framework is aligned with the SDGs and we provide financial incentives for projects that have ESG criteria. On the other hand, we would also like to highlight financial innovation. Sustainable sovereign bonds can create a wonderful impact when they're integrated in economic policy. This requires technical capacities and multi-stakeholder partnerships, so international cooperation between different actors and international financial institutions is fundamental. That's all, Moderator. Thank you.

Thank you so much. Thank you very much, distinguished representative of Uruguay. Now let's go to Croatia. Distinguished representative of Croatia, you have the floor.

Thank you very much, and we thank all the presenters for their insightful views. This is a very timely discussion, as it is evident, as we have heard, that exclusively public financing is not enough to achieve long-term sustainable development. However, in order to attract private investment, we need an enabling environment to drive an impact at scale. Financial institutions, through mechanisms like green bonds, carbon markets, and climate finance, are essential in channeling funds towards projects that mitigate climate change, promote renewable energy, and support sustainable infrastructure. Let me give 3 short examples of what we are doing in Croatia. One of them is Environmental Protection and Energy Efficiency Fund, which is a fund that is primarily directed to local-level investment in clean energy and decarbonization projects, and is open to all, from citizens, local governments, to institutions. Another example is Croatian Bank for Reconstruction and Development, which wants to improve the quality and availability of financial resources for long term using private equity and venture capital funds. They are especially important for small and medium-sized enterprises, since Croatia, as a small country, increasingly relies on them to be for its productivity and long-term development. Lastly, Croatia is also investing in green bonds, which are making now 8% of the bond market, but the trend is to make it 30% by 2030. Croatia is ready to share these experiences with other countries, including through its work in ECOSOC, if elected for 2026-2028. Lastly, a question: How can de-risking work in fragile and post-conflict countries. Thank you.

Thank you very much. Thank you very much. Now we go to the civil society, the European Forum on Debt and Development, Eurodad. Someone representing the civil society?

Good morning, ladies and gentlemen.

My name is Maria José Romero and I speak on behalf of the European Network on Debt and Development, Eurodad.

And the civil society FFDE mechanism.

The 4th International Conference on Financing for Development is a key opportunity for the international development finance community to renew its commitment to deliver a global framework to achieve the SDG agenda.

For that, a reality check on the role of private finance in development is needed.

The Financing for Development process can either set the stage for transformational development in the Global South or repeat the mistakes of the past. In early December, we heard from the World Bank's Chief Economist that the snappy slogan of going from billions of public money to trillions of private finance turned out to be a fantasy.

This was a timely recognition.

On this basis, we believe that a strong focus on creating a business-enabling environment is a cause for concern. Civil society and academics have warned against the high risk of policies aimed to attract private investors, as they can result in negative impact on sustainable development needs and human rights obligations. Given the lack of evidence that the majority of development and climate projects in the Global South are bankable, continuing to use public concessional finance and public institutions to promote new iterations of a problematic approach Can be a historical mistake. We call on UN member states to promote a cautious approach at the global level for the use of blended finance guarantees and all mechanisms dedicated to leverage private finance. Private finance should be framed at the service of national development plans and in support to a structural transformation of countries in the Global South. Otherwise, there is a risk of exacerbating the debt. Time.

Yeah, thank you very much to the representative of Eurodad, a civil society. Thank you. And now I give the floor to the distinguished representative of Finland.

Thank you, Chair. Mobilization of private capital for financing sustainable development is an integral part of Finland's foreign and development policy. This is also our key priority for the FFD4 Conference. Already in the Addis Ababa Action Agenda in 2015, private sector investment was recognized as key in reaching financing for development targets. We need to find efficient methods to increase both domestic and international private finance and investments. The ODA remains important in especially in the poorest countries, LDCs, and it should be used to leverage private financing, de-risking measures, and to pilot new solutions. We have utilized returnable capital as part of our development finance instruments for almost a decade. We have used it to strengthen the blended finance approaches of MDBs with promising results. Finland supports the Scale Private Investment Mobilization project advanced by Convergence to identify how to mobilize private investment at scale, equitable across all SDGs and developing countries. The aim is to standardize replicable private investment mobilization models for how public sector funds can be used most effectively and efficiently to allow private investors to invest in markets with higher risk. We believe that the simplification and standardization of blended finance, where feasible, will ease the access to the benefits of blended finance by developing countries when the same structures can be more easily replicated. We also believe that standardization will facilitate development finance providers to pool their funds more effectively to build scale. We are happy to be part of the—

Thank you very much, distinguished representative of Finland. Let me now give the floor to the representative of Spain.

Excellencies, distinguished delegations, Seville gives us the opportunity to move on several fronts. So that the private sector invests more and does it better. And I would like to insist on 5 issues. First, it is fundamental to include environmental, social, and economic sustainability in the equation to determine where to invest. Providing blended financing should lead us to prioritize impact and efficacy as well as leveraging private funding. Secondly, we need more private financing, and we need to adapt instruments to the needs of developing countries. We need longer loans and in local currencies. We support the creation of a joint platform for multilateral banks and other development banks in order to create common funds in the local currency at a reasonable cost. We also insist on incorporating clauses to pause the debt when there are food crises or environmental crises. Third, we should strengthen local markets and the local economies in our partner countries. Fourth, for all of this, and in keeping with Draft 1, we would like to foster creating norms that are focused on sustainability and to improve international interoperability. Fifth, I would like to highlight the importance of social dialogue between governments, unions, and businesses. A strengthened social dialogue to create low-carbon economies on a global scale. This is the path forward: dialogue, partnerships, responsibility, and sustainability. And we must move forward together to get to Seville. Thank you.

Thank you very much. Thank you very much, Representative of the Netherlands. Sorry, on Spain. Now, finally, we have the representative of the Kingdom of the Netherlands, and that's the final, final— that's the last person. Thank you. Thank you very much, Mr. Chairman. Having been active with our European partners on the issue of mobilizing private capital for over a decade now, I just wanted to share one lesson learned, and that is that we should be very thoughtful and mindful of using our scarce ODA. We have learned that developing innovative finance mechanisms is a very effective use of ODA, and you don't necessarily in all situations require ODA for blending or ODA as guarantees. They can be very useful, but we also have an example that it's not needed. And that example is of recent date. A year and a half ago, we supported, with a few European partners, an asset class which is called ILX, and ILX has been able to mobilize $1.5 billion of private capital, institutional capital, on the basis of the dataset which is available from the MD&As. and the B's and also the E fees. So we can actually use the project pipeline we have developed together in this room for the past decades to actually make sure that that project pipeline is privately funded in a cautious and responsible manner. So that will not cost us any ODA, it will not cost us guarantees. This can just be done by the market because of the perceived risk, as some said in the previous panel, which is not a real risk, and that can make us invest private capital into low-income countries, into all the SDGs we need, just because we use cautiously our ODA.

Thank you very much.

Thank you very much. Now, after the statements by the Honourable Secretary of State for International Cooperation of Spain and distinguished representative of the Kingdom of the Netherlands, We go back to the panel for 1 minute each if there is anything, any response that you have from what you have heard from the member states, and then from there we close. Starting from— yes, go ahead please.

I would just need a mic. So, mic is here. I am pretty happy to see that there is a clear alignment that The mobilizing of more private investments is crucial for our success, and I think that the European Union offer of partnership of equals based on the investments in sustainable energy, sustainable transport, sustainable sustainable economic development, but not including only investments in the hard assets, but mainly in health, education, and know-how transfer, is basically something where we see increasing demand. And as I already said, we are ready to remain the trusted and reliable partner in the game. We are also ready to confirm our leadership in this area and I am looking forward to cooperation with all the partner states in order to make the world a better place to live. Thank you very much.

Thank you very much. Thank you. Tatiana?

Thank you very much. I think, like Joseph, I see— I'm encouraged to see a lot of convergence on the importance, especially of finding the right blend for public and private capital, even when we talk about huge and necessary private capital mobilization for sustainable development. There is a degree to which public action and public capital in different forms will be vital in terms of ODA, catalytic capital, and technical assistance. I would like, because we have very short time, to highlight 2 issues. One is actually capacity building in all this. I think there is a momentum for us to focus much more, because a lot of what we have been talking in terms of enabling conditions, it depends a lot on really capacity building, including for the preparation of projects in different areas. Now, the second thing is the issue of risk and how to better share risk that was alluded to by many of the speakers. You see, for some areas, and because we had public capital subsidizing technologies in the past, perhaps we don't need a lot of public capital anymore. Private capital can take care of many of the projects in infrastructure and transition. But even where sometimes the risks of the projects are the same, let's say, for advanced economies and developing countries, finally, you have other barriers, for example, in foreign exchange risk. That's where I also see many mentions to the importance of local currencies and strengthening guarantees. I think there is a lot of convergence there too. The final word on the importance of development financial institutions and, in particular, public development banks. I think they do help to make this bridge a lot for risk sharing, because they know a lot our environment, the particular environment of different countries. They are also a source of immense resources, estimated in $23 trillion for all public development finance institutions. I think there is a very important avenue that especially is being conducted by Financing Commons, and it's also very important for our aim in the Financing for Development Conference and leading all the way to COP this year. Thank you.

Thank you very much, Tatiana. Diana?

Thank you, Under-Secretary-General. I would not only— I agree, there is an alignment here. Is this on? There is an alignment here, and I will not only— I will also align with the previous, with my panel, so to speak. I want to highlight one thing, and that is also, as the Commissioner pointed out, this partnership aspect and how we see we'll do this together, that involving more private capitals. And as we see it, we also want to involve our own businesses this, this also helps us to build viable partnerships beyond development cooperation and beyond any ODA financing, as was referred to by the representative of the Netherlands, that there— this is really the long-term way to do and to build broad, viable partnerships that can stand on its own feet. Thank you very much.

Thank you very much. I think this has been very useful. Please give a round of applause to our panelists here. Thank you so much. It's very difficult to summarize because they have said it all, and just a few things to take away. We need clear policies and regulatory reforms at the country level. We need de-risking instruments, as many as we can get. To help the private sector to invest. We also need affordable financing even for the private sector themselves. It's not only the government, but at the same time, domestic resource mobilization that includes also the capital market development is very, very critical for the private sector to invest. There is also the blended finance and guarantees that have been talked about, and also expanding the menu of financing instruments for the private sector, and this can help in terms of really having the private sector also investing heavily into our development process to achieve the SDGs. So I want to thank all of you, the participants, the member countries that have given us your own ideas, and now I give back the floor to the Chair. Thank you so much.

Thank you. I thank you, Mr. Moderator, Mr. Gatote, for moderating and for expertly guiding these discussions. I also thank all the— our distinguished panelists for your substantive contributions. And most of all, I thank the ministers, excellencies, and the delegations for your participation and for engagement in a very productive exchange of views. And excellencies, With this, we have come to an end of this morning's sessions. The Forum will reconvene at 3 PM in the same conference room to hold the 3 consecutive ministerial fireside chats. Thus, the meeting is adjourned for now.

Thank you very much.