Multi-stakeholder round table 6: "Reforming the international financial architecture and addressing systemic issues" - 4th International Conference on Financing for Development FFD4 (Sevilla, Spain)

We're going to start. Thank you very much, distinguished colleagues, representatives of governments.

Distinguished representatives of observers, entities of the United Nations systems, and other accredited intergovernmental organizations and representatives of civil society, Excellencies, ladies and gentlemen, I call to order the sixth multi-stakeholder roundtable of the fourth International Conference on Financing for Development on the theme reforming the international financial architecture, and addressing systemic issues. Let me take this opportunity to cordially welcome you, all of you, to this multi-stakeholder roundtable. I'm honored to serve as co-chair together with His Excellency, CD Kaita, Minister of Finance and Economic Affairs of the Gambia. As you know, the summary of our discussions here today will be presented to the closing plenary meeting of the conference this afternoon on Thursday, the 3rd of July, this afternoon. Before we proceed, I would like to deliver a few introductory remarks about the theme of our discussion today. We are coming to the end of this fourth international conference on financing for development. This conference has marked a high point in the calendar this year, especially at a particularly important time for the multilateral agenda and in terms of driving the development agenda. This is a conference that sets out a roadmap to design a new framework for financing for future years and future decades, one that is more inclusive, more just and more efficient. Over the past few days, there have been a number of things that make me very optimistic, despite the difficulties that we're facing. The first is that I think that we are seeing very clearly a change of narrative, recognition also by all stakeholders of the urgency of action in light of the silent debt crisis that we're seeing and the need to increase the capacity of financing for the international system. The Compromiso de Sevilla has ambitious plans with concrete measures, and we have been discussing this with Rebecca a number of times with very detailed measures that will help with the implementation of the Sevilla commitment. with the overall and overarching aim of improving the daily lives of our citizens. This commitment is also about moving to concrete action. We've created the platform of action of Seville, and there are now more than 130 initiatives. Thirty of them have been presented here officially. And they are led by more than 36 countries, seven multilateral banks, seven international financial institutions, study centers, and also the private sector has been participating in these initiatives. And I think all of these are reasons for us to be optimistic. Really, what we're seeking in this conference is to drive change through concrete action and initiatives that allow us to improve the lives of our citizens. And Spain stands ready to do this. It's going to continue to support and lead all of these efforts beyond this conference, FTF4. And today, we want to talk about the need to address reform of the international financial institutions and the architecture and make it suitable to overcome the problems that we're facing today, especially the most vulnerable in developing countries. And we heard from Minister Sanchez yesterday. I now would like to highlight two lines of action in this area, in the area of the reform of international financial architecture. The first is really quite clear, the need for a framework for IFIs that is equipped, adequately equipped with the means, with the resources to do that. We need to be able to equip ourselves with sufficient resources to tackle and to deal with this growing need for financing from developing countries. But we also need to be able to warn against future crises. And alongside this, there is a need to guarantee capacity so that we can ensure this financing is adequate. There is the safety net for poverty and there's other sustainability trusts. We need new formulas beyond the ones that already exist so that we can mobilize SDRs. And this also has been one of the key conclusions We need to continue developing and driving all of the assets that we have available to us so that we can mobilize not only the reserve assets of the IMF, but also greater financing capacity from the private sector. We also need to ensure that the IMF can avoid these excessive charges for countries that are already experiencing economic difficulties, and there has been major progress in this area as well. The second line of action, beyond having sufficient financing capacity to do this, is the institutional impetus, reform of the institutions to make all of these initiatives truly effective and efficient. We were able to achieve this reform within the IMF with the creation of a third seat for Africa, 25th seat in the IMF, and Spain supported this very strongly under its leadership of the IMF. in 2023. We have also at this Seville forum, another of the major steps forward has been the creation of the Borrowers Club, the Seville Forum on Debt. This is going to be one of the major institutional innovations that will help us raise up the voice of developing countries and borrowing countries so that they really have a voice in the debate. And so, my way of conclusion, I want to bring to you a message I've been sharing with all of you, and that is that Seville is not the end of the road. This is a starting point to continue renewing and renovating and innovating. And I want to talk about the three that have guided our action here. And the first is inspiration, promoting through this political momentum a real innovation, a real drive to renew and reform our institutions so that they are able to overcome the challenges that they have before us. A strong message from Seville to support multilateralism and to strengthen international financial institutions. The second I is innovation. Understanding and recognizing that giving the same answers to the same questions isn't going to help us get out of the difficult spot that we're in. We need to find different answers to the challenges that we're facing. And this is why I mentioned some of the innovative mechanisms that we need to do by rechanneling special drawing rights in the multilateral development banks or to use innovative solutions for debt to provide relief and to create this fiscal space to the countries that most need it. And then finally, The last I is integration, and we see this here around this table. All of the relevant stakeholders are here to work together, to cooperate, to achieve the best possible results that are beneficial to all. And so, without further ado, now that my colleague is here, I would like to invite my co-chair, His Excellency, Sidi Kater, Minister of Finance and Economic Affairs of the Gambia. to deliver a few opening remarks as well. Minister, the floor is yours.

Thank you very much, my co-chair and panel members, honourable colleague ministers, distinguished guests, all other protocols duly and respectively observed. Excellencies and distinguished colleagues, it is a great honour to join you today and to serve as co-chair of this vital discussion. I thank the organisers of the Fourth International Conference on Financing for Development for bringing us together at such a pivotal moment. Let me start by simply saying it as it is. The current international financial architecture is not working for the vast majority of the countries, particularly the small and most vulnerable among us. For countries like the Gambia, the gap between our ambitions and available financing is not just a policy issue, but is an existential one. We face multiple overlapping challenges, high debt burdens, climate shocks for which we account very little, a young and growing dynamic population, limited access to affordable finance. And the hard reality is that while we are being asked to do more to invest in health, education, and agriculture, and climate resilience, the tools that we have are very limited. For example, the Gambia nearly have a population of 60% under the age of 25. This is a tremendous opportunity, but only if we can invest in creating the jobs, skills, and infrastructure. Yet today, we are spending more on debt service than on health, education, and agriculture combined. In 2024, the interest payments alone account for 25% of our domestic revenues. And this is not sustainable, and it's not unique to us. That is why the reform of the international financial system is not a matter of preference, it's a matter of survival. When this financial architecture was designed, just after the Second World War, the global agenda and the global setup is very different from today. First, we must amplify the voice of the developing countries in the global decision making. Reform cannot be limited to quota adjustments at the Fund or the Bank or the FIs. We need full and fair representation in the governance of these institutions. We need to be at the table and be heard when global rules are written, when crises are managed, and when solutions are designed. And we need to be listened to in the preference of solutions to domestic challenges. It should not just be a Washington consensus. being shoved down the throat of developing countries. We welcome the call in the compromise of the civil for enhanced participation and inclusiveness, and we urge the international community to accelerate the implementation of these reforms. Second, we need a stronger, fairer global financial safety net. For too long, emergency support has been slow, too expensive and too difficult to access, especially for low-income and climate-vulnerable countries. Let's take special drawing rights as an example. The 2021 issuances of the SDR was a lifeline for many of us, but the distribution was deeply unequal. Less than 3% went to low-income countries, while the bulk was allocated to economies that needed it less. We support the development of the new SDR playbook, one that ensures a timelier issuance, easier channelling, and better alignment with the development needs of the developing countries. In our region, there is a strong potential for regional financial arrangements, and we urge greater support to these mechanisms to complement the global resources. Third, We must tackle the system barriers that keep capital out of our countries. For countries like the Gambia, credit ratings, often based on narrow and outdated metrics, drive up our cost of borrowing, regardless of our macroeconomic discipline. Despite the reforms we've undertaken to improve fiscal governance, enhance transparency, and digitalize revenue collection, We still face borrowing costs that are several percentage points higher than peers with similar fundamentals. And the regulations designed for the global financial stability, while important, often discourage investment in long-term development, particularly in the small economies. For example, if you look at the spread that developing countries are paying for the same issuances, they far exceeds similar risk elsewhere. And empirical evidence of the risk of investing in developing countries is not supported by the models of the rating agencies. And as we know, rating is a big club game, and we are struggling as developing countries to come up with a rating that better reflects our risk based on the empirical and the actualized risk, not the perceived risk. The rating agencies are still grandfathered for a clause where the perceived risk is what forms the basis of the rating, not the actual realized risk. If we want to unlock the private capital, we must fix these underlying issues, and this includes better engagement with the rating agencies, adjustments to the risk-weighted capital rules, and investment in transparency and country-led plans. I think it's long overdue that the rating agencies hear the cries of the developing world. If you look at similar rating for the fundamentals of developing countries versus countries in the emerging or developed world, the spread is just not supported by the facts. Over the past five years, we have introduced major reforms in the Gambia to improve domestic resource mobilization including the launch of a comprehensive tax administration, policy reforms, and digital platform to increase efficiency and compliance. We have enhanced public financial management, strengthened debt transparency, and prioritized social spending on a very tight fiscal space. And we always tools macroeconomic stability, but we all know we are at the bottom of the pyramid. So if we are not allowed to grow, when will we ascend that mountain? Let us remember that this is not just about theory. This is about the lives of the people. The architecture we build must deliver better results, more stability, more investments, and more hope for our citizens. Let me move. Let us move from just-- let us just move-- let us move from just talk and to actions. and to make the international financial system fit for purpose, fit for the planet and fit for the future. I thank you for your kind attention.

Thank you very much. I thank my fellow co-chair for these remarks. We will now hear an address by our keynote speaker. I have the honor to invite His Excellency, Hossein Mohamed Latif, Vice President of the Republic of the Maldives, to address the roundtable.

Bismillahirrahmanirrahim. Distinguished Co-Chairs, we have talked about the reform of the financial architecture for many years now. But when it comes to action, we keep coming up short. The severe commitment that we adopted two days ago is the beginning of a new chapter. This new chapter must not be just ink on paper. It must be actioned. It must be delivered. When the current international financial architecture was established, the world was a different place. Since then, we have seen groundbreaking achievements in technology, digital infrastructure development, and connectivity between and among states. Since then, over 100 countries have gained independence. That is 100 countries who did not have a say in the establishment of institutions that have a direct impact on their future. That is millions of people who did not have a say in the establishment of mechanisms that affect their daily lives. Their ability to develop a sustainable and dignified life, their ability to provide a better future for their children, Small island developing states account for one-fifth of these new countries. The international financial architecture must be reformed. It must be a pathway for sustainable development, not an obstacle to it. It must enable progress, not pull us away from it. It must support innovation and progress, not slow it down. To that end, the Maudis underscores three immediate actions that needs to be taken to reform the international financial architecture. First, ensure representation. No instance on seats without seats. Our voice matters. Our needs matter. Our representation matters. The cost of exclusion is a lack of understanding of our problems and the solutions. It further limits our ability to secure what we need and the financial institutions' ability to adapt to our evolving challenges. This means reforms in governance structures, updating quotas, reforming voting rights and decision-making roles, boosting participation on boards, and improving institutional transparency. This means coordination across the various institutions informal norm-setting groups, the United Nations and other relevant institutions. Second, ensure debt sustainability. Development can only be sustainable with adequate financing. We should not be forced to choose between servicing debt and development. This is why we are advocating for a debt relief for resilience-building mechanism. It does not push debt servicing down the road while interest increase. It brings about debt relief against the country's investment in resilience and does not create new debt. Third, ensure fair credit ratings. They do not address climate risk, leading to artificially low rating and limiting access to affordable finance, which forces us to borrow which leads to even lower ratings and the cycle repeats. We need a change. We need transparency. We need support. The calls for reforms of the international financial architecture are growing louder by the day. Strong political will and renewed commitment is the way forward. I thank you.

Mr. President.

I thank the Vice President of the Republic of the Maldives. I am pleased to welcome the distinguished presenters for this discussion. I also welcome Ms. Rebecca Greenspan, Secretary-General of the United Nations Conference on Trade and Development, UNCTAD, who will moderate the discussion. I now turn the meeting over to the moderator. I look forward to an open, constructive, and productive exchange of views. Rebecca, you have the floor.

Thank you very much, Minister.

Welcome to the moderated discussion roundtable on reforming the international financial architecture and addressing systemic issues. We are joined today by an exceptional group of finance leaders who bring country-level experience and regional perspective to this conversation. We have the Minister of Finance, Economic Development and Investment Promotion of Zimbabwe, His Excellency Mr. Nekube. We have the Minister of Budget of the Republic of Guinea, Mr. Sylla. We have the Minister of Finance and Budget of the Central African Republic, Mr. Ndoba. And we have the Governor of the Council of Europe Development Bank, Carlos Montecelli. Before I give the floor to our excellent speakers, allow me to quickly set the stage. But we have heard excellent interventions already, so I will be quick. Over the last four days in Seville, one thing has become clear. The issue we face in the international financial system are not isolated liquidity. development finance, capital flows, interest rates, debt, they are part of a system. When a system works, all parts add to something bigger, creating a virtuous cycle. Today, we don't have that. Take liquidity. During COVID, the IMF mobilized huge resources, but across the entire global membership, the total liquidity it provided over three years was roughly equal to what the US Federal Reserve injected into its own financial system in just one month through quantitative easing. That comparison isn't about fault, it's about scale. Scale is also an issue when it comes to development finance. And the Minister of Spain talked about scale. Today, the multilateral development banks are expected to deliver more on climate, on resilience, on inclusion, but they're paid in capital. Relative to global GDP, it's just one fifth of what it was in 1960. This means in stable times, we don't invest enough to build long-term sustainable development. In times of crisis, the multilateral development banks are unable to offset private capital outflows. And we know that we have had a negative capital outflow, a capital in the developing countries for three years in a row. So, countries, the consequence of all this are well known. Countries that have acted responsibly still find themselves forced to borrow due to external shocks. There is just no alternative. As debt piles up, they are forced to default on development, not to default on their debt. All of these taken together raises perceptions of risk because, yes, being vulnerable is risky, which means borrowing costs go up before a crisis, during a crisis, and long after the crisis has passed, like the Minister of the Gambia clearly told us in terms of the cost of capital. Today, we know that 3.4 billion people live in countries that spend more in servicing the debt than on health and education. The Compromiso de Sevilla understands this. When it calls for tripling MDB lending, more crisis liquidity through tools like automatic SDRs and fair debt resolution, it's not asking for something new. It's for the system to deliver on its original purpose, to stabilize economies during shocks and support long-term development. With that, let me turn to our panelists that I like to keep the discussion as interactive as possible. So let me open with a question to all panelists. From your countries, or region's perspective, how do you intend to take forward key actions of the Comptomiso de Sevilla, particularly in strengthening voice and representation, as we heard from the Minister of the Gambia, improving access to global financial safety nets, and removing systemic barriers to long-term investment? Let me start with Minister Kube. How do you see this commitment moving forward in Zimbabwe? The floor is yours.

Thank you very much, moderator. I'm pleased to participate in this session and thank you for your very directed question. In the case of Zimbabwe, we also recognize the need for reforming the global financial system, both in terms of global action, but also local action, domestic action as an accompaniment to global action. The issue, for example, of increasing voice within the global financial system platforms is critical. So we're very pleased with the recent additional chair, that chair that was created by the IMF, that will increase voice and accountability from the African region. So there is progress. So this inclusion is most appreciated. But also, we would like a more equitable treatment. of middle income countries versus low income countries in various financing mechanisms, we're beginning to see discrimination against middle income countries. The left half of African countries now are either low or middle income, mainly low or middle income, but certainly some are upper middle income. Now, coming to the issue of domestic resource mobilization, which is a key accompaniment to the international reforms, here we have no choice. We have to deepen the agenda of domestic resource mobilization, both for public resources as well as private resources. Embedding the whole issue of value for money in procurement will enable us to spend better, and then also increasing resource from, you know, sources such as, for instance, digital payments, for example, currently in Zimbabwe, 10% of our public resources come from digital payments. And I recall that back in 2020, when it came to buying vaccines, Zimbabwe was able to buy all these vaccines for cash, 200 million without any external support because we made available resources from this digital payments. taxing the informal sector, making sure that it is netted into the rest of the economy is also critical. So innovation such as, for example, location tax, which we have introduced in Zimbabwe, has gone a long way in making sure the informal sector pays its due share. Increasing again opportunities within the same taxes space also has been very helpful, alcohol taxes and so forth, including taxes on fast foods. If you buy taxpayers in Zimbabwe will pay a little bit more and that will go towards health and taxing data, for example, and a special levy for HIV/AIDS. So a lot is being done. In terms of crowding in the pension fund industry, we specifically have the instrument such as the prescribed asset status or liquid asset status, which cajoles the sector to invest in public infrastructure. We have launched tax-efficient instruments such as real estate investment trust rates. This has gone a long way in promoting the housing infrastructure investment. We've launched a commodity exchange again to support investment into the agricultural sector. So a lot is being done in terms of domestic resource mobilization. An area that we're really also making a lot of strides is in the area of climate insurance, because we believe climate insurance is a critical part of the domestic architecture, but also global architecture. Here we're able to provide insurance for individual farmers, as well as sovereign insurance at a sovereign level in a way that will allow us to do cash transfers should a climate shock occur. Finally, in terms of use of innovative blended finance, we have launched a Zimbabwe renewable energy fund jointly with the UN system, where we have been able to provide guarantees, lower the risk, de-risk the product. And we're in partnership as government with a company called Old Mutual. So we've got a private sector player, government is sort of contributing something, having skin in the game, and the UN providing risk mitigation, and this has gone a long way. So far we've raised 30 million US dollars. Our target is 100 million US dollars and this is going towards renewable energy investments, mainly in the solar space. So a lot is happening, but we need to do more. This is a new world order and we call upon everyone to really focus on a new financial sector, financing architecture for development. Let me stop here. I thank you.

Thank you. Thank you very much, Minister. very clear. And the issue of middle income countries, very clear too, very important. How do you see, let me go to Minister Silla and ask him also, how does he sees the commitment moving forward in the Republic of Guinea?

Thank you very much, Madam moderator. I'm very pleased to be here next to Carlos, Minister Carlos, because we were together in Malaga, and I'm pleased to see you once again. This is in another capacity. I'm very pleased to see you once again. It is a pleasure to address these issues. These are all interconnected topics. For the financial architecture, that is what I will begin with. We need to understand that When COVID was taking place, international organizations such as the IMF, everybody presently is talking about the IMF, at the time did something that was extraordinary. And more than $1,100 billion were allocated for special drawing rights in the system. And This was done under the leadership of Georgia's Kristina, whom I welcome and applaud here. And this was something which was genuinely of tremendous significance. And at the same time, the quota system was such that those countries who needed the resources least had access to them. And sub-Saharan countries, sub-Saharan African countries did not have access. Less than 3% was granted to them. And this is a situation that needs to be redressed. And the Malaga situation allows us to generate the advocacy to that end. And everything that is linked to not linking IMF obligations and helping to address the needs of developing countries is something that we need to advance. And everything that is linked to analysis of debt sustainability is something that also needs to be deepened. Today, What more than reshaping institutions, what I would advocate is to reshape the way that they operate. I'm well positioned to speak of these matters because I spent a good amount of my career in the IMF, and now my capacity as a minister responsible for mobilization of resources. I do know what I'm talking about. So when the IMF, for example, carries out a debt sustainability analysis, certain elements are taken into account which penalize us developing countries. And this is something which needs to be revised. If there is a call that needs to be made, it is that precisely. Internally, as my colleague from Zimbabwe mentioned, Guinea has established a very robust internal mobilization system, domestic mobilization system. And it is such that for more than six months, and this is recent, we have increased revenue income collection by more than 35% per month. And this is simply done by the introduction of digitization And the financial management is therefore completely interconnected and digitized. This reduces fraud levels, this reduces corruption levels, and this has a significant impact in reducing fraud and corruption. So the resources go where they should go. So in Malaga, what should be said is that there are two -- there's a two-pronged effort, restructuring the way that institutions -- financial institutions operate, on the one hand, and on the other hand, there is a call for greater domestic mobilization efforts and more robust mobilization efforts. I'm not certain whether we should revert back to that point. But since I do have the microphone right now, I do wish to dwell on something that is of tremendous importance to me personally, and that is the famous special drawing rights of the IMF, the SDRs. And as I mentioned, during the pandemic, the COVID pandemic, DTSs were issued in order to address the shock, and that was their purpose. But today, asking of the IMF that they issue SDRs would be as if you need an agricultural feed, you need an agricultural field, you need a caterpillar, but you actually need a Ferrari instead. And I do appreciate this Ferrari-Caterpillar comparison, because DTS allows you to move very expeditiously. But these are not resources that are developed for the purposes of development, but this is a tool to resolve systemic crises when it comes to payment balances. And the funds that we need are those can be dispersed over time. And this is where we need a genuine Caterpillar diesel tool and vehicle to deliver upon our commitments at the state level. And asking everything of the IMF, asking that the IMF issue the special drawing rights is also anti-democratic in a way. This is because this short-circuits the parliament, parliaments. If developed countries have an ability to finance development, if they genuinely have a meaningful, sincere commitment and the desire to finance development, this needs to be carried out through their parliaments, and they need to enact legislation, financial legislation, to endow their budgets. And it is not up to the IMF to criticize them, because it is easy to criticize them. So today, I'm not going to speak out in favor of the IMF here, but an institution should not be stigmatized through its effectiveness. And if we're genuinely keen to advance development, then there's a need to have the necessary tools for development. And I will be pleased to address other questions on domestic mobilization and on the establishment of an environment that allows countries like mine, Guinea, to mobilize more than $20 billion, the largest mining project in the world right now. thanks to robust political leadership by the President of the Republic, who has placed an emphasis on transparency and non-corruption to mobilize $20 billion and to invest in the system. Thank you, Madam.

Thank you. Thank you very much, Minister. Thank you for the emphasis on domestic resource mobilization. And let me say that in Guinea, The custom digitalization was done with the program of UNCTAD, so we feel very proud of that.

You see that?

Thank you for that.

Thank you. Thank you very much. And I see that it really made a contribution to the country resource, the domestic resource mobilization. Thank you very much. So let me now go to Minister Doba and ask you, how do you see this commitment moving forward in the Central African Republic? Minister, the floor is yours.

Thank you, Madam Rebecca.

Bonjour a tous.

Good morning, everybody. Co-Chairs, Excellencies, ladies and gentlemen, it is a genuine pleasure to participate in this panel. And I would like to begin by thanking the Kingdom of Spain for the leadership, for the simple reason that our preliminary discussions before we took our seats here, I discovered that Malaga is the city where the third headquarters of the Board of the board of the IMF was established. And so this is a this generates hope when it comes to the work that we are doing here. Our country, like many developing countries, is encountering a number of challenges, structural fragilities, crises, a low level economic diversification, and we are exposed to external shocks. The international financial architecture as it currently stands, despite its assets, is often insufficient and in adapted to unadapted to address the needs of low income countries. This has not helped to finance necessary financing to build resilient infrastructure, nor to invest in human capital. And this is why, and this has been mentioned by the excellent speakers before me, in-depth reform of the international financial architecture is desirable to redress these systemic imbalances, to help vulnerable countries forge more resilient economies, and to attain their sustainable development goals. But when this is mentioned, then the question is, we in the Central African Republic, what is our view of the next step in terms of this discussion? And I would like to tell you that while we welcome the problem, the Seville compromise, we have adopted a commitment to the implementation of a number of reforms, specifically a greater sustainability for our debt sustainability, for greater domestic resource mobilization and prioritization of responses, a growing transparency and budgetary discipline, a diversification of financial instruments by facilitating loans and concessional tools, rather than concessions, green, blue, diaspora, restructuring external debt, the establishment of rigorous measures to avoid accumulation of arrears in order to maintain trust and credibility of the state vis-a-vis its financial partners, improvement of the business climate, capacity build, institutional capacity building. These are efforts which are significant, but in order for them to be effective, you would agree that they need to be -- go hand-in-hand with urgent reform of the international financial architecture. Therefore, we welcome the fact that the outcome document of the conference reflects the importance of greater -- of improving global governance. improving financial safety nets and improving financial flows management. But let us be more specific. For my country, the Central African Republic, this hinges on tangible measures on five pillars. Number one, enhancement of multilateral institutions. Of course, there's a need to enhance representativity and involvement of developing countries in the decision-making authority at all levels. A previous speaker said that 100 than 100 countries still have not gained independence when the international financial architecture was set up. And today, Africa, with its one and a half billion residents, has the same voting rights as those held by certain countries who have a population of fewer than 100 million, which is completely unacceptable, not equitable, if we consider a human as the common denominator of all action. So we need to increase credits for green financing to support the efforts of countries to design and to implement frameworks to attract private financing, to increase the loan capacities of the World Bank, to mobilize greater resources to finance resilience and sustainability. And this is necessary to help increase loan with over the longer term, strengthening regional development institutions such as the African Development Bank. and to have the SDRs focused on hybrid capital to allow them to be leveraged to build the loan and capacity of the multilateral development banks. So to use these as leverage and to redistribute unused SDRs. And I agree completely with my colleague, not by emitting new SDRs, but by using those that have already been issued, but which were not used. The statistics show that Only 6% of the SDRs issued in developed countries during the COVID period were used. Only 6% were used to take into account the multidimensional vulnerability index. which is a critical component today and this needs to be taken into account. The second pillar is to improve debt management. We have spoken at length about this. I will not repeat that. The G20 shared framework, strengthening public-private partnerships and so on. Third, pillar, innovative financing, green financing, biodiversity, climate resilience needs to be enhanced. We need to establish insurances to address the national natural disasters and to cope for vulnerable countries to promote lower cost financing over the long term, support infrastructure, education and health care. And I I come from a country which has 10% of the Congo Basin forest, the second green lung of the world. This is not spoken at length, and 730,000 gigatons of carbon equivalent. And unfortunately, we have not in any way benefited from this natural capital, which generates essential social services to the rest of the world. So we need to be able to make tangible progress to take into account both our national natural capital and natural assets and, on the other hand, the financial counterpart. which is linked to that. And 4th pillar, the responsibility of developed countries. Yes, developed countries have an obligation to honor their commitments, their pledges regarding ODA to support. the redistribution of SDRs to promote inclusive governance of financial institutions. And I would like to conclude with the fifth pillar, and that is our responsibility, the responsibility of developing countries. We too have responsibilities in terms of strengthening economic and budgetary governance, in terms of improving domestic resource mobilization, we have a significant progress in terms of the CAR despite the 50% increase approximately of our domestic revenue collected between 2021 and 2024. only 8% of the fiscal pressure rate. So we see the leeway that we have here. So we absolutely need to speak in one voice in international fora. And in this vein, I would like to state that we have an exceptional platform, we, the African countries, that is the African caucus. The African caucus would bring together all finance and economy, planning ministers and all governors of the central bank. This has existed for 72 years it will meet 30 July next in Bangui, the CAR. And this is an exceptional forum so that together we can speak in one voice with multilateral development institutions and for us to generate the momentum which we have to move further to deliver the message at the African Union level through important upcoming meetings, both in Africa, South Africa, Brazil and COP20. I will stop here. Thank you very much.

Thank you. Thank you very much, Minister, for your very comprehensive intervention. And let me now go to Mr. Monticelli, coming from the European region. How do you see this commitment of the Compromiso de Sevilla, regionally and globally?

Thank you. Thank you so much for your question. And I am honored to try and answer it in a dual capacity, because now I'm speaking to you both as a governor of the Council of Europe Development Bank and as a chair for 2025 of the group of heads of multilateral development banks. First, I want really to thank and congratulate the leadership of this conference that have steered the consensus on the compromise of the Sevilla, which is a sound commitment to multilateralism. And multilateralism, as the King of Spain aptly remarked, a few days ago is really the only durable path to peace and progress. The challenge to fill the gap between current resources to deliver on SDGs and those which are necessary is daunting. The multilateral development banks are aware of it and individually and jointly want to be part of the solution. ARC committed to working as a system to deliver impact and scale. To do that, we have agreed on a precise set of actions, which have been spelled out in a common document, the viewpoint note, and are now enshrined in the G20 roadmap for bigger, better, and more efficient MDBs. So the path ahead is clear for what we have to do. It is now to implement and deliver. And we are making progress on innumerable fronts. And I just would like to share with you some of the work that we are doing. First, we are offering an increase in our offer of diverse financial innovative instruments such as hybrid capital and risk transfer mechanisms that create new ways for shareholders and the private sector to engage with us. We are together committed to share with the financial community and the world at large data on our operation, which we believe are essential to debunk the ultimately mis- the rating that has been so vividly recalled by President Atif and Minister Keita as one of the causes of the little, the insufficient flows of capital towards the investment that is needed for development and SDGs. We work together to promote promote and implement the channeling of special drawing rights. And I want to thank Spain for leading of that and particular Minister, Minister Querpo. We are optimizing our balance sheets with discipline and creativity, for example, with exposure exchange agreements, which allow us to make the most of the available resources that we have. And indeed, last Saturday, we had a very productive meeting in Paris, like right before we all flew to come to Seville. And we have just announced an additional lending ad room of approximately 250 billion over the next decade, which comes from this measure, and this reaches a total of around 650 billion of additional headroom, really quite a remarkable achievement. We are exploring further action in 2025 to significantly scale up investment in social infrastructure, health, education, water, sanitation, which we believe are essential components and factors not only to give dignity to people, but also as an instrument to development and job creation. We are signing an increasing number of mutual reliance agreements that increase the efficiency of our process and make life of our borrowers easier. We are increasingly share pipelines to facilitate co-financing opportunities among thus. We strengthened the collaboration across country platforms among us and with the local partners to make sure that in a domestically owned agenda the right synergies are found. But We are aware, of course, that scale is not an end in itself. It is an instrument. And we also are deeply committed to improve the quality of the projects, to learn from each other's successes and, alas, failures. To conclude, we are really aware of the challenge. We are really committed to stand, to be up to bar to the call that are made on us by the compromise of the Seville. In a way, we are really committed to do even better than our best. We owe this to our shareholders, to the global community, but most importantly, we owe this to all the people that can benefit from our projects. Thank you.

Thank you. Thank you so very much. And we know that a lot of work has been done by the multilateral development banks. And it's good to see also that they are working more and more as a system, not every bank individually. So thank you. Thank you very much. Let me thank all the panelists for this rich exchange. Allow me now to welcome our discussants from the floor. We have Mr. Africa Kisa from Christian Aid, and we have Mr. Jose Vinales, co-chair of the GIDS Alliance and senior advisor to the board at Standard Chartered. And we heard how countries are working to strengthen their fiscal space, and navigate systemic barriers in the financial system. We heard the importance of including the middle income countries in the tools designed to ease the financial constraints, the need to crowd in private investment by the multilateral development banks and what they are doing to scale up and to answer to the challenges. the role that climate insurance plays, and the need for standstill clauses on the face of climate events. We heard the importance of domestic resource mobilization and the responsibility of governments, but also the need for institutional capacity building for longer term financing and for a better use of the SDRs that have already issued. And we also heard about the innovative finance and taking into account natural capital, about green and blue bonds. You know, when I studied economics, economics didn't have colors. Now economics have colors. Now we have the blue economy, we have the green economy, we have the orange economy. So things have changed in a very innovative way. So let me go to our discussant and ask them in the light of the Compromiso de Sevilla, how can global financial governance be restructured to ensure that reforms and commitments are truly responsive to the priorities of countries more in need. Voice and representation was mentioned here very strongly. So please, the floor is yours, Mr. Chiza, please.

Thank you, Chair. My name is Africa Chiza. I am with Christian Aid, and I'm also speaking on behalf of the civil society FFD mechanism. Amidst the buzz here in Ceville about branded finance, public-private partnerships, and how to unlock private capital, I wish to remind us why we are here in the first instance. Financing for development was never just about finding money for SDGs. It was and still is about systemic change, about shifting the very foundations of a global financial architecture that reproduces and entrenches inequality, instability, and dependence. The commitment on systemic change is echoed in the Bandung Declaration, SDGs and the Pact for the Future. I come from a continent where the effects of this are very real. Our economies in the Global South are vulnerable, not because we lack innovation or willpower, but because we are locked into global systems built on old hierarchies. Such systems include the US dollar dominance, smaller vote shares in IFIs, volatile capital flows, extractive trade structures, and biased credit ratings. It is not just undemocratic, it's unsustainable. These structures will inevitably shift as the global economy changes. The question is when. They ought to know you can't be top dog forever. Let's not forget the monetary got one thing fundamental right. that international finance rules cannot be left to a handful of economists. The M54 process moves beyond CVA. As we move beyond, we need to help the UN step up on one, leave the structure and reform, because the current mechanisms simply are not working. To regulate credit rate agencies, because their unchecked influence is causing developing countries We should provide an international public credit rating agency under the control of the UN to provide a different rating. Also, we need to protect countries' rights to use capital regulation and to review the mandates of the IMF and World Bank because their governance is far from inclusive. Chair, as I conclude, let's not forget the exclusive legislative bodies. of the Financial Stability Board. Let's invest in the legitimacy of multilateralism. Let's put the UN back in the driver's seat and where it belongs. Hasta la victoria siempre?

Muchas gracias.

Thank you very much and thank you for focusing in on the systemic issue and the need for systemic change.

To Jose Vinals.

And thank you very much. And thank you for giving the private sector voice and representation at this conference. You were talking before about the need for emerging markets and developing economies to have more voice and representation at the multilateral institutions. Well, thank you for having brought the private sector to this conversation in Sevilla. and also to this forum. The private sector has been very present in Seville with 6,000 participants from all over the world. And at GIsd, the Alliance of the United Nations of Global Investors for Sustainable Development, we have been very, very, very happy with the level of turnout and the conversations that have taken place during these days. Now, I want to focus on a couple of things, actually four things that have been particularly relevant in these conversations. And they can be brought together by the theme that the private sector will always move on the basis of what is in the commercial interest of the financial and the non-financial companies Of course, this commercial interest needs to be in line with the purpose of doing something good for society and for the world. But the commercial viability of projects is part of the fiduciary responsibility of the private sector. And the key to make sure that the private sector financing is mobilized as needed to finance sustainable development relies on the close partnership and collaboration between the private and the public sector, but also on the thinking together to co-create innovative structures that can help the cause of development finance. In that regard, I would like to mention four themes which are top of mind from the point of view of the private sector in order to make progress. The first one is an enabling policy framework at the national level. That is key for investment to flow. Things like the rule of law, the strong institutions, macro financial stability in a business friendly environment is something which is critical for investment to flow. And in turn, the private sector can help, can help in providing support to develop local capital markets by bringing in international investors. can also provide innovative solutions working with the multilaterals so that they can lend more to the countries in local currency, avoiding the big problem of foreign currency mismatch. So that's point number one. Point number two, the key role of multilateral development banks. This is something that Carol Monticelli has talked about a moment ago, and I think that there's been a sea change compared to the situation a couple of years ago. where now there is a change of mindset, a change of the actual products that the multilateral development banks are putting on the table, and the ask is not for something different, but for much more of that, much more in terms of producing the preparation of investable projects, Much more in terms of innovative de-risking and platform structures for risk diversification and distribution, and for the provision of catalytic equity, which maximizes the impact of the capital on private capital mobilization. Third, financial regulation. This is something that belongs to a different space, the financial regulatory community. But this is something which is immensely important. And financial regulation was changed after the global financial crisis for a good reason. And I think that it has immensely contributed to preserving global financial stability. But there may have been some unintended consequences for the financing of emerging markets and developing economies. And the private sector wants to have an open conversation with the financial regulatory policy community, not on lowering the guard of financial regulation, but on right-sizing financial regulation to avoid situations that we have observed in our international operations, many of us, financial market participants, where capital liquidity standards applied to banks, to insurance companies, over penalize the investment in emerging markets and developing economies by overestimating the real risk. There was a previous conversation on the role of credit risk, credit rating agencies. I think that there is another conversation that needs to be held with the financial regulatory community. And one fourth and last message, which is more medium term. There is a need to rethink when redeveloping or reshaping the new or reforming the international financial architecture, the model of engaging with the private sector. We are seeing some important things happening. For example, in the closer conversation with the multilaterals, innovations like the World Bank private investment lab, innovations like the global sovereign debt roundtable, co-chaired by the IMF, the World Bank, and the G20, all of those bringing the private sector. But this is just the tip of the iceberg. This is the beginning of a model of engagement that I think requires a lot further thought and developing, because if we do that, I think that over time, we will be able to serve much better the needs of the world by working together, both public and private sector participants. Thank you.

Thank you. Thank you very much, Jose. And we heard about the importance of the mobilization of private capital, how to engage better the issue of foreign currency mismatch and the MDBs and how to manage risk. And Mr. Kizza also referred to the issue of the biases seen in the system with the credit rating agencies in terms of the perception of risk of the developing countries. So the issue of managing risk have come up very strongly and also the issue of regulation. So now We've heard from our panelists and discussions in a very rich exchange. So we highlighted in the Compromiso de Sevilla that this is not just about institutional reform, it is about building a financial system that enables long-term investment, resilience, and inclusive development. Let's carry this momentum forward from Seville to action. With that, let me now pass the floor back to the co-chairs to open the debate segment. With them, saying to the panelists that if we have time at the end, we will get back to you to respond to the intervention from the floor. Thank you very much.

Thank you very much, Mrs. Greenspan, for expertly guiding the discussions, and I also thank our distinguished panelists and discussants for their substantive contribution. I think we can give them a round of applause. Excellencies, distinguished delegates, we will now listen to the interventions for the participants in the roundtable. In order to maximize the time available for us and allow as many participants as possible To take the floor, I would urge all speakers to kindly observe the time limit of three minutes for interventions. To assist speakers in this regard, a timer has been installed. When the clock signifies that three minutes has been exhausted, speakers are kindly requested to conclude their statements. In accordance with the agreed modalities, The microphone will be deactivated 30 seconds after the allotted time has lapsed. I apologize in advance if speakers are cut off. As delegations have been informed, due to high interest in the roundtable, we unfortunately have to resort to these measures to hear from as many speakers as possible in the limited time available. Thank you in advance for your understanding. In adhering to the time limit of three minutes, I would like to appeal to speakers to deliver their statements at a normal speed so that interpretation may be provided properly. Delegations wishing to make interventions who have not previously indicated so are encouraged to do so and are kindly advised to approach the Secretariat in the room. Having said that, I now open the floor for interventions in the roundtable. And this will be moderated by myself and the co-chair. So please, the floor is open for discussions. Yes. Okay. First, now I give the floor to His High Excellency, Ines Maria Chapman, Deputy Prime Minister of the Republic of Cuba, to take the floor. Thank you.

Thank you very much, co-chairs, distinguished panelists, and guests. In a historic speech delivered at the conference in Punta del Este, which was held in 1961, the then Minister for Industry of Cuba, Commander Ernesto Che Guevara, said, "Today, the international monetary system designed in Bretton Woods, the strategic alliances of powerful nations, the IMF, and its unpayable loans go hand in hand with unbridled consumption. monetary measures cannot resolve the structural crisis of capitalism. How different would the landscape be today if more than 60 years ago they had listened to the demands and the outcries coming from the developing world? However, the current international order continues to operate in the service of a very small number of countries, while marginalizing the vast majority of the global population and sidelining the legitimate concerns and demands of developing nations. This has highlighted once again the need for real reform of international financial architecture. Today, it is profoundly unjust, outdated, dysfunctional, and exclusionary. And we need instead one that can promote effective mobilization of the financing that is necessary to combat the climate crisis and achieve sustainable development, especially for the countries of the Global South. The institutional framework established by Bretton Woods is no longer fit to meet the demands of the global landscape in terms of governance, representation, and access to financing. Developing countries must have a voice and a vote. Our peoples cannot continue to be victims of austerity measures that encourage cyclical patterns, conditionality, and interference. This is imposed by a group of obsolete institutions who, for decades, have applied draconian measures to exploit the wealth of the South and perpetuate models of dominion and domination that is economic and otherwise. The developing countries need economic integration and international financing that is broader and more beneficial, that respects our sovereignty. As agreed in the Compromiso de Sevilla, it's urgent for states to refrain from promoting and passing unilateral coercive measures that violate international law and the Charter of the United Nations if we truly aspire to an international order that promotes development and economic growth. Chairs, financing for development, if it is truly genuine, requires global tax justice, cancellation of illegitimate debt, democratization of financial institutions, and a change of paradigm that puts people and planet over capital interests. I thank you.

Thank you, Madam Ignacia Maria Chapman of Cuba. I now give the floor to His Excellency Salou Seye Oumar Sy, Deputy Prime Minister of Laos People's Democratic Republic. No, no, no, no, no. Okay, okay. Yes, I now have the floor. I now hand over the floor to His Excellency Panapasi Nelison, Deputy Prime Minister and Minister of Finance and Economic Development of Tuvalu.

Co-Chairs, Excellencies, distinguished delegates, Tuvalu welcomes the momentum generated by the Compromisso de Sevilla and reaffirms our full commitment to its key actions. We strongly support inclusive and ambitious reform of the international financial architecture, one that ensures equitable representation and voice for developing countries, particularly Small Island Developing Countries and least developed countries, LDCs, within global financial institutions. Eight years since its creation to prevent global financial collapse, the international financial system is now widely recognized as outdated and unfit for today's challenges. If we are serious about addressing climate change and sustainable development, reform must be urgent, transformative, and fit for purpose. Such reform must go beyond technical adjustments, such as voting realignments. It must confront and correct deep-rooted inequalities in the representation, decision-making, and influence. This includes enhancing the participation of states and LDCs in governance structures, promoting leadership diversity, strengthening regional institutions, and supporting country-led platforms and regionally tailored solutions. We also call on the IMF to take a more active role in strengthening the global financial safety net. A revamped Special Drawing Rights, SDR, mechanism should allow for timely issuances during crises and provide transparent, equitable channels for reallocation, particularly through multilateral development banks, to ensure access even for non-program countries. To unlock long-term investments, we must create a financial system that rewards resilience rather than penalizes vulnerability. Current credit rating methodologies systematically ignore climate risks, resulting in unfair downgrades and prohibitively high borrowing costs for vulnerable economies. We call for stronger international regulatory frameworks to ensure greater transparency and accountability credit rating agencies. Tuvalu further supports the full adoption of the Multidimensional Vulnerability Index by international financial institutions and MDBs. The MVI must become a core criterion for assessing concessional finance, reflecting the unique structural vulnerabilities of countries like Tuvalu beyond income-based metrics. Chair, Tuvalu is not asking for special treatment. We are asking for fair treatment. We need inclusive financial systems designed to to confront our unique structural challenges and enable us to build resilience, sustainable and dignified futures. I thank you.

I thank His Excellency Panapasi Nelson, Deputy Prime Minister of Tuvalu for his remarks. I now give the floor to Her Excellency Lesedi Adele Makhlangwane, Minister of Finance and Development Planning of Lesotho, my sister.

Thank you, Chairperson, Excellencies, distinguished delegates. This is an honor to contribute to this critical dialogue on the future for the international financial architecture. For the Kingdom of Lesotho and many least developed countries, this conversation is not abstract. It is urgent. It is existential. Lesotho welcomes the compromise of the Seville and its call for genuine financial architecture reforms. We reaffirm our commitment to work with partners to promote inclusive global economic governance with stronger LDC representation, to build domestic capacity in debt management, public financial governance, and resource mobilization, and deepen African regional financial cooperation through Pan-African and other GFIs. Global economic governance must evolve beyond vote counts. LDCs must shape, not just receive, decisions. The Kingdom of Lesotho calls for more voice and representation in the Bretton Woods institutions, inclusive governance structures with representation on boards and technical bodies, transparency and accountability in decisions that impact the most vulnerable. The IMF must evolve into a proactive and equitable support institution. We propose faster access to emergency and precautionary financing for low-income countries, re-channeling of unused SDRs through multilateral banks, development of an SDR playbook with automatic triggers during global shocks, reduced lending costs, and streamlined conditions for vulnerable economies. And so to underscore the need for finance, financing systems that reward and provide incentives for reform, not penalize vulnerable and good performance. We call for reform of sovereign credit ratings to reflect LDCs realities and resilience, understanding and not perceiving the fundamentals of developing countries is key. Greater competition and transparency in rating methodologies, financial standards that facilitate, not hinder, capital flows to developing countries, enhanced cross-border payment systems, and support for debt to climate swaps. Less bureaucracy in accessing climate funding and enabling us to deal effectively and timely with climate risks. This is a moment for truth. Reform must go beyond declarations. It must restore fairness and trust. The Swazis chooses transformation over incrementalism. We stand ready to engage, to lead, and to partner so that no nation is left behind. I thank you, Chairman.

I thank Her Excellency. Minister of Finance and Development Planning of Lesotho. I now give next give the floor to Palau, Mr. Brid Thomas of the Policy Coordinator of the Office of the President of Palau.

Thank you, co-chairs. I have the honor to deliver these remarks on behalf of the Alliance of Small Island States, AOSIS. Small island developing states remain on the front line of overlapping global crises, climate change, economic shocks, and geopolitical disruptions. Yet the international financial system contributes to operate on assumptions that do not reflect our lived realities. To put it simply, the current system was not built for us. The Compromiso de Sevilla rightly calls for urgent reform. However, its commitments is a floor, not the ceiling. In this regard, we reiterate our longstanding call to move beyond income-based eligibility criteria. Income per capita tells you nothing about a country's exposure to climate disasters, narrow economic base, or capacity to absorb external shocks. This is why AOSIS supports the use of a multidimensional vulnerability index to guide access to finance and development access more fairly. Second, finance must also be sufficient, predictable, and accessible. Our countries require scaled up grant-based support. Financing windows across international system must be tailored to the scale and urgency of SIDS with simplified procedures for SIDS. Third, we need a real seat at the table. Voting shares matter, but so does meaningful participation in decision making, governance, and crisis response. Our voices have to shape the system in a meaningful way through enhanced representation at all levels of the system, including management positions. Lastly, we require a more nuanced approach to sovereign credit ratings. The current regime is expensive, biased towards wealthier countries, and does not consider our unique vulnerabilities. Without ratings, borrowing costs for SIDS are high, making it harder to invest in resilience. And when crises hit, those with ratings hesitate to seek debt relief for fear of being downgraded. Indeed, The current international financial architecture was not built for us, but we are ready to help build one that serves all. Thank you.

I thank the distinguished representative of Palau for his intervention. I now next give the floor to the representative of the International Federation of the Red Cross and Red Crescent Societies.

Thank you, distinguished chairs, excellencies, distinguished delegates. The International Federation of Red Cross and Red Crescent National Societies welcomes the focus on reforms of international financial architecture, the need to address fundamental systemic issues, and the need to bring the architecture into greater alignment with sustainable development. In particular, we note the call for revised governance that more accurately reflects the diversity and complexity of the world, and actions to broaden and enhance the voice and representation of developing countries in international financial and economic institutions. We support the call to explore the IMF quota share realignment to enhance developing countries' voice and better reflect members' relative position in the global economy, while protecting the shares of the poorest. We also support the calls for, firstly, the World Bank Board of Governors to conduct a comprehensive shareholding review to achieve an equitable balance of voting power, and secondly, the executive boards of the IFIs to consider options to enhance the voice and representation of developing countries, including increasing the size of the executive boards to create balanced geographic representations. We support these efforts and see them as critical to maintaining global legitimacy and accountability in a changing world. We endorse the emphasis on strengthening the global financial safety net. In a world with more frequent and intense crisis, it is vital to strengthen global macroeconomic coordination and reduce negative spillover effects often most detrimental to the most vulnerable. We welcome the IMF and World Bank Group enhanced framework for scaled up climate action and call on others to replicate this framework and support continuous reviews of IMF toolkit and the adequacy of its pool of resources to ensure sufficient resources. Two concerns. While we support the broad thrust of the document, we would like to see more stronger language around inclusive and comprehensive safety nets for the most vulnerable population groups and situations of crisis. Macroeconomic reforms have a track record of impacting the most vulnerable the most, requiring more purposeful language on efforts and commitments that mitigate that. We'd also like to see stronger language on the interplay between crisis and development, noting that in a world of growing and more complex crisis, preparedness and mitigation efforts are a critical part of development efforts and financing. We will work and encourage strongly others to do the same, to work for the establishment of government-led preparedness and disaster risk financing instruments within national development plans, alongside regulations and guarantees for the development of innovative disaster-linked financial products recognizing how these are very much a central part of development efforts and goals. Thank you very much.

I thank the distinguished representative of the International Federation of the Red Cross and Red Crescent Societies. With that, I hand over the floor to my co-chair. Thank you.

Thank you very much. Now we go to the distinguished representative of Sri Lanka, Mr. Ponzo, Senior Additional Secretary to the President's Finance and Economic Affairs Division.

Dear delegates, while Sri Lanka is successfully on track to restructure its sovereign debt, our experience exposes deep structural weaknesses in the global financial system. a more holistic approach grounded in development and resiliency is long overdue. Overreliance on fiscal indicators such as tax revenue to GDP or debt to GDP ratios overshadowed our broader social economic development realities. Debt sustainability frameworks must evolve to include social economic progress, climate risk, disaster related expenditures, and human development outcome. Sri Lanka reaffirms the calls for the reforms of sovereign credit rating methodologies to prevent the derailment of national development goals during temporary downturns. Credit down based on short term economic shocks only amplify economic challenges, making finance in for debt repayment in in accessible and subsequent default more likely. The road to Recovery post default is long. High risk premiums and restricted market access limit government's ability to invest in essential public services. The scope of development-oriented projects narrowed significantly post restructuring, undermining the very purpose of financing for development. Mounting penalties for delayed payments to contractors further strain our finances. This outcome illustrates why preventing debt restructure Debt distress must be a global priority and why meaningful structural reforms to the international financial institutions are needed. We reiterate the need for development-oriented debt architecture that aligns with national priorities and climate vulnerabilities, empowers countries to negotiate on equal footing and builds domestic capacity for effective debt management. We also believe that MDBs should take steps to use their private sectors more effectively to facilitate developing countries to attract investments. We also reiterate prioritizing lending in local currencies to shield countries from exchange rate shocks. Innovate instruments linked to sustainable development and climate resilience must Also, we explore tense scale. The longer term affordable and predictable financing tailored to the realities of developing economies, especially in short-lived downturns, must be priority. Sri Lanka's complex and costly debt restructuring process also reveal the lack of structure applicable to middle income countries such as the common framework. Therefore, we reiterate the call to expand this framework to MICs. In conclusion, For Sri Lanka, this is not a discussion in abstract. Our people have faced immense difficulties resulting from this process. Therefore, Sri Lanka joins the strong call for the reforms of the international financial architecture to be a fairer, more inclusive system that truly serves people and not just markets. Thank you.

Thank you, Mr. Abonso. Now we turn to the distinguished representative of Mongolia, Mr. Nyamdorj, Permanent Representative of Mongolia to the UN. Please, the floor is yours.

Thank you, Chair. Excellencies, distinguished delegation, ladies and gentlemen. At the outset, I wish to convey my sincere appreciation to the honorable ministers of Spain and Gambia for their leadership in organizing this important roundtable discussion. I would like to also to congratulate for the contribution in this important discussion who have spoken prior to me. I think in times of rising geopolitical tensions and uncertainty in global trade and investment, a reform of the international financial architecture is urgent and essential. The small and vulnerable economies in particular are increasingly exposed to external shocks. To provide assurance and safety for economies against crisis, the IMF must be at the center of efforts to the global financial safety net and strengthen its role by its governance reform, enhancing lending capacities and better use of special drawing rights. However, the common practice is that the SDR allocations and other multinational financing formulas often rely primarily on income levels and assessments of the recipient countries' policy quality and institutional frameworks. This approach results in uneven and limited access to the global financial safety net for low and middle income countries. Since the economies most vulnerable to external shocks are often those in need of resource, it's essential to reassess the practical role of the global financial safety net to ensure it's more sustainable, equitable, inclusive. In this regard, the indicators of the multidimensional vulnerability index should be integrated and applied into more multilateral financing frameworks to better reflect the structural vulnerabilities of developing countries. To meet the estimated $4.3 trillion gap for sustainable development, all sources of financing must be mobilized. In this regard, beyond the GTP agenda can be essential part of the reform of the international financial architecture and should be mainstreamed across all sources of developing financing. By advocating for shift from income-based classification to more comprehensive metrics that reflect development potential, such approaches can also stimulate greater affordable financing from private sector and facilitate innovative and country specific financing mechanism, complementary to the official development public resource. I thank you.

Thank you very much, Mr. Nyamdo. Now we turn to the distinguished representative of Poland, Mr. Sierski, permanent representative of Poland to the UN. Please, the floor is yours.

Mr. Chair, Excellencies, Distinguished Delegates, I would like to start by thanking the distinguished keynote speaker and the panelists for their insightful remarks. In my intervention, I'm going to make a few points. Firstly, let me assure you that Poland believes that a more inclusive and responsive international financial architecture could help prevent and mitigate future financial crises. And secondly, on the role of IMF, the significant progress towards sustainable development requires strong domestic action. supplemented by international efforts. In this respect, the IMF plays a key role in helping its member states to strengthen their macroeconomic and financial stability. As the IMF is not a development finance institution, the following elements are key for its lending to be effective and exert the crucial catalytic effect. First, respecting conditionality and high lending standards of the IMF, which help restore confidence of donors and private sector. Second, proper lending volumes in line with members' debt carrying and absorption capacities. More specifically, on the topic of the special drawing rights, discussions on the IMF's governance and policies, as well as on the SDRs, should remain within the remit of the Fund, as it is paramount that the mandates and governance arrangements of international financial institutions are fully respected. And the option for SDR channeling must preserve the reserve assets status of them and compatibility with domestic legal constraints. close monitoring of the use of SDRs is also essential. My final point will be about the evolution of the international financial architecture. In order to truly bridge the sustainable development financing gap, this evolution must be balanced between global coordination and regional empowerment. between financial stability and innovation and between prudent oversight and market accessibility. Complex and fragmented regulatory environments creates unnecessary barriers, particularly for smaller enterprises and investors. Simplifying financial market regulations is essential in complementing the pinning capital markets and mobilizing private investments. However, while working on the evolution of international standards, We should not forget about the need for maintaining robust, effective and risk-based international banking and financial regulatory standards that guarantee the stability of international financial markets. Last but not least, the international financial architecture should evolve towards greater transparency, accountability and cooperation among countries, credit rating agencies, regulators and investors. In closing, let me reiterate that Poland believes in these actions all together, which I mentioned, will contribute to a more stable financial system and promote development and economic resilience. And I thank you.

Thank you very much, Mr. Szczerski. Now we turn to the distinguished representative of Samoa, Mr. Lutero, Permanent Representative of Samoa to the UN. Please, the floor is yours.

Thank you very much, co-chair. Samoa will focus on several questions that have been posed for our input on how to take forward the key action of the Compromiso Seville, two main issues, debt and ODA. On debt, we need to set, establish a sustainable, equitable, predictable and fair debt regime, starting with a robust mechanism for debt restructuring. On the ground, our dilemma is to either honor our debt repayments or meet our SDG obligations. That is neither just nor sustainable. Past ODA commitments and pledges made are still outstanding. We are calling for action. One such concrete action is the fulfillment of the promise of 0.7% of GNI for ODA. This would give us an extra 196 billion annually for sustainable development. On how to strengthen the IFA to be more representative and inclusive of developing countries, two simple and direct ways. design of policy conditionality to align financial support with the SDG and climate commitment, and ensuring country ownership and policy flexibility. In addition, promote and support South-South cooperation and knowledge sharing, and invest in experts and think tanks from the majority South. We must also strengthen the FFD process as a legitimate mechanism for financial dialogue. Co-chairs, on the issue of the MVI as a complementary metrics relating to ODA, debt, and access to concessional financing, we urge all IFIs, MDPs, and partner country to consider our best to integrate factors of vulnerability into their decision-making process. We need, Chair, a financial system that recognizes all of us, understands us, and works for us. Intention is not a substitute for action. I thank you.

Thank you very much, Mr. Lutero. Now we turn to the distinguished representative of the civil society, FFG mechanism.

Alliance for Rights, Equality and Solidarity.

Thank you, co-chair.

The current global financial system is failing to address rising inequalities, debt distress, climate and ecological breakdown. chronic underfunding and costs of public services that affect billions of lives, especially in the Global South.

Like my country, Nigeria. Unpaid care and domestic work, predominantly done by women, acts as a shock absorber, exacerbating gender inequalities in the context of crisis and remains a major unrecognized subsidy to the global economy. These issues are deeply entrenched in and reproduced by the inequitable design of the current international financial architecture. It is therefore distressing and unnecessary that the FfD4 outcome reduces systemic issues to narrow focus on IMF and the World Bank. By agreeing to work through the governance structures of these institutions, Global South countries remain locked into governance systems and structurally excludes and marginalize them. Whereas the Monterrey Consensus acknowledged that systemic asymmetries defining the international financial and monetary architecture cannot be resolved on the national terrain and reveal their steep social and economic costs through recurrent crisis. The current tax on necessary takes a step backwards on democratic global economic governance. We cannot stress the enormous human cost of the current system and the urgency for systemic change. Three out of four countries, like my country again, spend more on servicing external debts than on healthcare. and in some cases spend as much as five US dollars.

On debt servicing for every one dollar spent on health.

Despite their gravity, these issues are not unsumountable. Overcoming these global challenges is a political choice that requires unwavering commitment to justice, equity, democracy, and to the well-being of people and the planet. In reality, The IFIs have not delivered on governance reform for years, and we do not expect them to do that now. IFIs need to be brought fully into the UN system, accountable to the UN General Assembly, governed democratically, and guided by universal participation that respects human rights and gender equity. FFD4 should therefore initiate a profound review of the IFIs and MDBs. governance structures and mandates, hence reaffirming the role of the UN in global economic governance. The following up of FfD4 remains critical to push for systemic change needed. Inclusion of voices, urgency includes the role of civil society within the UN processes. The voice and the dignity of civil society has been jeopardized at this FFB4 in Seville. A climate of top-down power, fear and anxiety in the UN conference, especially one held...

Thank you very much. Thank you.

I now give the floor to the distinguished representative of Korea, Ms. Jung Hoon Park.

Thank you, Chair, Excellencies and distinguished guests, ladies and gentlemen. The international financial system has evolved through repeated global crises. However, it needs further reforms to ensure that the system remains responsive and inclusive. As co-chair of the G20 International Financial Architecture Working Group, Korea has actively involved in strengthening the global financial safety net. We are also working through regional mechanisms such as Asian plus three to enhance regional stability. Like this, at both global level and regional levels, Discussions on strengthening the financial safety net are on the way. However, one critical area remains under-addressed, that is, for vulnerable countries to develop their financial safety nets from within. And we should ensure this issue, that is, developing the domestic financial safety net, stays on the agenda and does not fall through the.

Cracks.

In particular, we need to focus on helping vulnerable countries build sound and resilient domestic financial systems. It includes strengthening macroprudential policy frameworks, particularly in the management of external debt and foreign reserves, as well as improving transparency of domestic financial system to attract long-term investment. At the same time, we need to expand international support for capacity building and technical assistance on this agenda. We hope that future discussions at the UN will be conducted respecting the mandates and roles of each international financial institution, as well as cooperating with them. Korea welcomes the reaffirmation of international solidarity for strengthening the global financial safety net at this FTF4. And we will actively engage in the global efforts to advance the international financial architecture, closely cooperating with the relevant institutions. Thank you.

Thank you.

I now give the floor to the distinguished representative of the Republic of Algeria, Ali Bougharaoua.

You have the floor.

Thank you, Mr. President, Excellencies, ladies and gentlemen. The reform of the global financial architecture is something which is of urgent importance for this architecture to effectively operate and for it to fulfill its role in terms of development in the present-day world. The limitations of the present-day system are such that they are marked by shortcomings, a lack of effectiveness and efficiency, as well as a growing debt burden, and there are difficulties in terms of access to resources. This architecture, therefore, is not able to address the needs of developing countries, be they economic, climate-related, strategic, or other needs. There is a need to accelerate the reform of this architecture with a view to achieving tangible results. based on a specific timeline, I would like to emphasize the following points. The capital from multilateral development banks have demonstrated their limitations insofar as they are counting on national budget contributions, and this is significantly undermining national economies by affecting vital sectors, including education, healthcare, and others. And this is also increasing the burden that is borne by developing countries due to the fact that the concrete results are not being attained in light of reimbursement-related difficulties. Therefore, we call for an innovative, novel approach vis-a-vis capacity building for multilateral development banks in order to have optimal harnessing of special drawing rights and to enhance the effectiveness and efficiency of international governance. This is necessary in order to have developing countries have access to preferential treatment. I now turn to my second point. We wish to stress the need to have global solutions vis-a-vis sovereign debt, given that global -- provided that they be inclusive, that they be transparent and effective, while at the same time reflecting the development priorities as set out by the countries themselves. To conclude, I wish to recall an undeniable reality, namely, our network of interdependent states is a reality. Therefore, the reform of the global financial architecture by focusing on effective financing for development -- the microphone has been cut off.

Thank you for that intervention. I now give the floor to the distinguished representative of Kenya, Mr. Wang'Gunda. Thank you.

Thank you, Chair.

Excellencies, I'm happy to join this discussion on international financial architecture and dynamic issues and rhetoric that The reforms of international financial architecture to make it responsive to the plight of countries of the Global South require urgent action. First, we ensure that we increase the representation of the Africa Group in the board of directors of the World Bank and IMF. Second, we will continue to call for scaling up multilateral development banks concessionary lending and push for elimination of unnecessary surcharge that increases the cost of debt servicing. Third, rechanneling the special drawing rights via MDBs, which should be based on fiscal needs and not on quotas. This will ensure that access to SDRs is not quota allocation, but should be made accessible based on economic needs of governments. We will explore and engage MDBs to consider local currency lending in new financing initiatives, which will cushion the countries against foreign currency lending risks while lowering the borrowing cost to ensure debt sustainability. The reformed international financial architecture should be able to support debt restructuring without credit rating agencies downgrades. It should be able to support liability management operations through provisions of political risk insurance and technical advisory support, ensuring that costs are lowered and meaningful savings are realized that can be directed to development outcomes. Last but not least, data and monitoring is important in measuring progress in implementation of FD4 outcome. We will continue to strengthen capacity of our national statistics office and also seek partnership to support capacity development of Kenya National Bureau of Statistics to provide financial and economic statistics critical for global surveillance and risk monitoring. Kenya commits to implement FD4 outcome to greater extent possible and linkage partnership with relevant several platforms for actions will be important in supporting the implementation.

Thank you.

Thank you very much. I now give the floor to the representative of the United Nations Environment Programme.

Thank you. Excellencies, distinguished delegates, colleagues, on behalf of UNEP, thank you for this opportunity to spell out some views on how the international financial architecture should evolve to better support sustainable development. This topic is indeed one of UNEP's five asks for financing for development, and I'm honored to outline it in further detail now. We believe that private finance can become an engine of sustainable development, but this requires an effective enabling environment and sound public finance management. While blended finance has shown potential in select contexts, evidence suggests its ability to scale and meet systemic needs remains, as a result, a piece of the puzzle. In order to go further, system change is needed, and real transformation will require fundamental financial sector reforms, a whole-of-government approach that integrates sustainable finance policy and prudential regulations with broader economic policies. On behalf of UNEP, I would like to point to the following aspects in particular. Firstly, it's very important to highlight the link between sustainable development and stable and sound financial markets. The latter is foundational to achieving the SDGs, but this means that private sector actors need to better understand and address systemic environmental risks, particularly since climate and environmental risk will intensify throughout this century, as we know. In this regard, UNEP has been working for many years with the global financial system via the UNEP Finance Initiative. Through this partnership, unique frameworks such as the Principles for Responsible Banking, the Principles for Sustainable Insurance have been developed precisely to orient and to guide how such topics might be integrated directly into business strategy and business management. We're promoting in this way impact management by the private sector directly. Secondly, The need to strengthen financial sector policies. This needs to complement the work that is done directly by the private sector actors. Better pricing, incentives for long-term capital, these will drive investments into productive, resilient industries. Integrating sustainability, climate, and nature risks into financial stability assessments is a foundation for promoting transition planning and for financial institutions to be aligned with national pathways and global goals. Thirdly, last, and relatedly to this last point, advancing globally recognized corporate disclosure and due diligence standards will be essential. As part of this, integrating risk management, harmonized taxonomy, and realignment of incentives towards sustainable consumption production, transition pathways across high impact sectors is essential for transparency and finance mobilization. Legislation must balance an impact and financial materiality focus while ensuring proportionality, national relevance, and global methodological interoperability. On these two last points also, UNIP is committed to pursuing its work, providing technical input and advice for the development process of relevant instruments. on the one hand, to the development of sustainable taxonomies, which is so crucial to help define sustainable business and hence direct investments accordingly. And on the other hand...

Thank you very much, representative for UNEP. I now give the floor to the representative of the Republic of Chad, Ahmed Abdrahime Abbo. Thank you.

Thank you very much, Co-Chair. Distinguished guests, ladies and gentlemen, Chad was one of the first countries to experience the common framework of the G20, and this experience revealed a lack of coordination between lenders and eligibility criteria. we have some important takeaways that lead us to advocate for a more just and effective framework. This is why we have called for a review of access to financing and the creation of a global council on fiscal regulation and taxation. The institutions set up in 1945 are not fit to deal with the world today. We only have 6% of the voting rights in the IMF as developing countries. This is why we propose strengthening the IMF and better allocation to overcome debt distress. Today, Since 2021, Africa has only had 5% of the support. Supporting the channeling of multilateral development bank support and special support for LDCs and LLDCs is important. In order to facilitate sustainable and long-term investment, Chad proposes adopting a multidimensional vulnerability index as a criteria for access to financing. Guiding private investment into sectors such as energy and agriculture and climate resilience is also important. Just 12% of our needs are currently covered in this area. So we need more than 200 billion a year in order to truly support the energy transition. As part of the mobilization of regional resources, we call for the creation of a sovereign African agency, strengthening the regional banks, and better use of financial facilities and instruments. By way of conclusion, we have a legitimate voice for better and more equitable governance of international financial institutions. stable and predictable support for vulnerable countries and sustainable reform of international financial architecture. Our experience, our geographic position and our exposure to shocks means that we have a strong voice for a more just system. I thank you.

Thank you, Mr. Abou.

Thank you very much, Mr. Nava.

The distinguished representative of Seychelles, Ms. Agatheine, Principal Secretary of the National Planning Department, Minister of Finance, National Planning and Trade of Seychelles, please.

Thank you very much, Pooches. Excellencies, distinguished delegates. The Republic of Seychelles is proud to stand here today as a high-income but small island developing state that has weathered economic crises, innovated in sustainable finance, and maintain the productive relationship with its international financial institutions. We know firsthand that cooperation with IFIs can be transformative, but we also know that the system must evolve to reflect today's realities. Seychelles fully supports the Compromiso de Sevilla and its call for reforming the international financial architecture to make it more inclusive, responsive, and development-oriented. These are not abstract principles. They are practical necessities for countries like ours navigating complex vulnerabilities despite our classification as high income. Yes, we have achieved middle and high income status, but that label obscures our narrow economic base, our exposure to climate shocks, and our limited fiscal space. Like many SIDS, a single climate-related event or economic shock can reverse a decade of progress overnight. The system must recognize this reality, and we too, as member states and shareholders, must help drive that change. We welcome the IMF's evolving role at the center of the global financial safety net. Seychelles has benefited from the IMF support over the years, and we value our collaborative engagement. But we also believe the Fund must continue to reform to make lending more flexible and accessible, to integrate vulnerability into eligibility criteria and to implement a new SDR playbook that allows for quicker issuance, fairer collection, and targeted rechanneling to countries most in need, irrespective of income category. We also urge renewed focus on systemic barriers, such as credit ratings, despite our strong governance and pioneering pioneering work in blue finance and debt for nature swaps, Seychelles faces borrowing costs that do not reflect our commitment to resilience. We need deeper engagement with rating agencies, but we also need to reform the rules that give their judgment so much weight in development finance. Finally, let me emphasize, we cannot expect change only from the institutions. We, the Member States, as shareholders, as policy stewards, as political actors, have a duty to advocate for reform and to act in solidarity. This includes giving a voice to the voiceless, standing up for the vulnerable, and designing a system that values sustainability as much as solvency. Seychelles remain committed to advancing the CCR agenda and to building a fairer financial architecture for all. I thank you.

Thank you, Ms. Agathin. Now we turn to the distinguished representative of Cabo Verde, Ms. Vieira, Secretary of State for Foreign Affairs and Cooperation. Please, the floor is yours.

Thank you, Mr. Co-Chair. The government of Cabo Verde shares the view on the need to improve and enhance very fundamentals of international cooperation so we can effectively deliver. To this end, needless to say, there is a need to undertake bold actions in order to address the gaps on international financial architecture, business as usual is not an option anymore. It has been eight years since the international community crafted its foundational lines. Nowadays, we are living in a different context. States are facing difficult challenges and the developing countries, many seats and middle income countries, disproportionately affected by the public crisis that have been aggravated with geopolitical tensions throughout the world. The world has become a complex place to live in, which is a wake-up call to address systemic issues that can hamper the progress so far we have achieved at national and global levels. Multilateralism remains the best avenue for concerted solutions to global problems. Furthermore, the international community needs to adopt smart solutions when it comes to financing for development. They have to be specific, measurable, achievable, relevant, and in a way that we can deliver effectively and improve cooperation for development effectiveness. Mr. Co-Chair, we need indeed a paradigm shift on the concepts and policies that no longer fit for purpose. The call for a strengthened and renewed global finance architecture should encompass policies for a broader coherence, long-term solutions towards resilience, inclusiveness, equity, better coordination, and sustainability. Cabo Verde believes that a more effective development cooperation requires a stronger international financial system that fits for purpose and able to address the 21st century's challenges, considering the main concerns of countries in special situations as SIDS. Last year, we have adopted MVI, but defining MVI was not an end in itself. It is indeed the beginning of a paradigm shift on financing for development. If properly used by relevant financial actors, the IFIs, MDBs, the MVI will encompass the principle of leaving no one behind as a way for a more inclusive and equitable financing architecture. The full implementation of ABAS is key. There is also a need for specific and special treatment grounded on data-driven and evidence-based instruments to solve not only the finance gaps related to them, reinforce that sustainability inter alia through the DSSS, ensure effective climate finance, but also to delineate more consistent policies to overcome challenges posed by multiple vulnerabilities and thus promote resilience in SEADs. I thank you for your kind attention. Thank you.

Thank you, Ms. Viera. Now we turn to the distinguished representative of the Bretton Woods Project and Society for International Development. The floor is yours.

Thank you. Thank you, Mr. Chair. I'm also representing the FFD CSO mechanism. The FFD process beyond Cevia must undertake decisive actions by mandating intergovernmental processes to regulate all key dimensions of monetary and financial regulation. This should include a comprehensive review and reform of the global reserve system with special attention to the role in issuing modalities of IMF special drawing rights. The Monterrey Consensus aimed to provide a response to global South's lack of control over their national currencies and thus their economic stability and security due to deregulated capital flows, a highly unequal international currency hierarchy, unregulated transnational financial actors, and higher borrowing costs. More than 20 years later, we are still living in what Professor Jose Antonio Ocampo has called the international monetary non-system, where developing countries must seek to self-insure against external shocks. In 2021, IMF provided a general allocation of 650 billion worth of special drawing rights to countries around the world. Within a year, 104 low and middle income countries had utilized these reserve assets, including to buy vaccines, fund public health services, pay off their debts, or support their domestic budgets. However, due to the fact that SDRs are distributed according to IMF quotas, the majority of the allocation went to the IMF's wealthiest members. The G7 received nine times more than the entire African continent. While SDRs use was progressive, their allocation was regressive. To enhance their effectiveness, SDRs role within the wider reserve system must be reconsidered. Potential key reforms include agreeing automatic triggers for SDR allocations, decoupling future allocations from IMF quotas, and reforming the IMF's SDR accounting rules to ease their exchange and use for fiscal purposes. While the Compromiso de Sevilla's call for SDRs reform, namely the creation of an SDR playbook, is welcome, it is regrettable that it defers this discussion solely to the IMF's Executive Board, which has proven an ineffective forum to discuss these issues in an equitable manner. It is also particularly regrettable to see language removed in the final stages of negotiations that sought to make SDRs more responsive to the needs of developing countries. As with other key systemic issues of the Fund, Global North countries have so far defaulted on delivering both the reforms and actions required to make SDRs more fit for purpose for Global South countries. For this reason, we reiterate our call for a wider reform and review of the global reserve system to be situated within the UN in order to equitably agree reforms which ensure that developing countries no longer have to cope with a monetary non-system in an era of multiple overlapping crises. I thank you.

Thank you very much. Now we turn to the distinguished representative of Philippine, Mr. Capistrano, Director, Public Investment Staff, Department of Economy, Planning and Development. The floor is yours.

Thank you, Mr. Chair, distinguished delegates. The Philippines reaffirms its strong commitment to international cooperation in advancing financial reforms and addressing systemic issues within the global economic architecture. As a member of the G24, the Philippines joined the call for a quota realignment during the 2024 World Bank International Monetary Fund Spring Meetings. which seeks to reflect evolving global dynamics and to amplify the voices of emerging market and developing economies within the international development financing community. In April 2025, the Philippines spearheaded the adoption of the Makati Declaration on Middle Income Countries, which reflects the persistent fiscal and developmental challenges faced by middle income countries. The Mahathir Declaration identified the Fourth International Conference on Financing for Development as a vital platform to advance development cooperation and reform the international financial architecture in pursuit of the Sustainable Development Goals, or the SDGs. The Philippines has developed strategic frameworks and roadmaps that reflect the country's commitment to fostering a resilient, inclusive, and sustainable financial architecture. These initiatives are intended to strengthen the financial system, address systemic vulnerabilities, and align with both national development objectives and international sustainability goals. Aligned with this vision, the United Nations Development of Economic and Social Affairs 2024 Financing for Sustainable Development Report highlights that achieving the SDGs require financing of trillions of dollars annually. While multiple financing mechanisms have been introduced in the Philippines, challenges persist in ensuring that fund allocation and utilization transcend mere attribution to specific SDGs. The Philippines continues to advocate for improved accessibility to international financing facilities and official development assistance, particularly for developing economies. We underscore the importance of strategically channeling these resources towards SDG-aligned initiatives that can drive inclusive and sustainable development. Consistent with the Philippine Development Plan, we emphasize the role of inclusive digital finance in expanding access to SDG-aligned investments. Investing in digital public infrastructure can significantly enhance domestic resource mobilization, reduce transaction costs, and improve access to financing for micro, small, and medium enterprises, particularly for women, youth, and rural communities. Lastly, the Philippines recognizes that for developing countries like ours, the current international financing architecture continues to reflect asymmetries in voice, access, and financial risk allocation. As a climate-vulnerable middle-income country, we join the global call for a bold, inclusive, and just reform of the international financial system, one that ensures that no country is left behind. Thank you very much for your attention.

Thank you very much. Now we turn to the distinguished representative of Jamaica, Mr. Wallace, permanent representative of Jamaica to the UN.

Thank you, co-chair.

For SIDS like Jamaica, unleashing financing for development is not an academic exercise. It is existential. In the face of the onslaught of crises such as climate change, global shocks, rising debt, and limited fiscal space, the international financial architecture must be reformed for fairness, inclusivity, and resilience in order to address the unique vulnerabilities of SIDS. The voice and representation of developing countries in the IFIs must be enhanced, and we support the call for an IFA that is agile, fit for purpose, sensitive, and reactive to the realities and evolving challenges of the global landscape. Governance reforms in the international financial architecture, with representation and equity as the cornerstones of empowerment, are overdue. IFIs must lead the way in developing and deploying instruments which are attractive to private finance, which remains largely untapped at affordable rates for developing countries. A reformed IFA must facilitate the implementation of innovative financing mechanisms, support financial inclusion, and improve access to concessional financing, including climate finance, for developing countries at the scale required to meet our needs. We call for a global financial architecture that looks beyond the GDP and moves beyond the existing rigid eligibility criteria of GNI to embrace the implementation of the multidimensional vulnerability index as a metric to more accurately assess risks and take account of vulnerabilities like size and scale, climate change impacts, and narrow resource bases, which are common hindrances to states' ability to service debt. Structural inequalities must be addressed in the reform process. The pace and complexity of accessing climate finance, for instance, stands in stark contrast to the urgency of the threats we face. We need simplified, responsive, and agile mechanisms that support adaptation and resilience at the community level. We need more robust debt relief instruments, including debt for climate and debt for nature swaps, which offer practical pathways to sustainability while honoring our fiscal responsibilities. Jamaica remains committed to pursuing innovative financing, bolstering domestic resource mobilization, and forging partnerships that uplift the most vulnerable. But our national efforts alone simply cannot solve a systemic imbalance. We need bold, collective and corrective global action to build a just, inclusive and capable system for the posterity of generations to come. We therefore have a collective obligation to honour and deliver on the undertakings of the Seville Commitment.

I thank you.

Thank you. I now give the floor to the distinguished representative for Nigeria, Federal Republic of Nigeria, George Stanley. You have the floor.

Thank you, co-chair, distinguished colleagues. Allow me to, on behalf of my Nigerian authorities, thank the Minister of Finance of Spain and also Gambia for co-hosting this event and providing us with opportunity to make some reflections on this topical issue. As we are aware, the world is at a pivotal moment where in the attainment of SDGs not only threatened, but some of the gains are already being eroded with diminishing ODA and access to concessional financing. SEVA therefore provides us with a unique opportunity to change the narrative. At the national level, we have undertaken bold reforms to ensure macroeconomic stability and propel growth and development. As a complement to national initiatives, we therefore align our call for a reform of the international financial system to a more functional and effective one, wherein prioritization of people over markets and does not equate development with debt, the one that ensures a more inclusive and equitable and resilient growth challenge. The IMF is at the front and center of this evolution. In this regard, we'll call for the rechanneling of SDRs and the creation of additional resource SDRs to help scale up resources for developing countries. This can provide a much needed liquidity and financing for sustainable development. Second, we have seen the inadequacies of the old EPIC initiative. and the DSI. Therefore, the need for a global debt resolution mechanism that is credible enough to refund or ensure transparent and timely restructuring that allows for access to more affordable long-term financing. Third, with the recourse to private capital, especially for many of the developing countries in Africa, the cost of capital is currently being exacerbated by the current methodology adopted by the credit rating agencies, wherein the risk appetite, the risk perception is grossly unfavorable. We therefore need an IFRS system that will provide for a more flexible and realistic risk appetite framework and methodology to be adopted by rating agencies. Fourth, the continued lack of growth has become a major challenge to to domestic resource mobilization for it is only with sustained growth that domestic resources can be eh well mobilized. We therefore call for a currency a system that will ensure that we have growth at the back and center of its revolution. Nigeria stands and remains family committed to collaborate with other here in this room and many others for a more equitable and inclusive international financial architecture. I thank you.

Thank you, the distinguished representative from Nigeria. I now call on the representative of the United Nations Capital Development Fund, UNCDF. You have the floor.

Thank you, co-chairs, excellencies, distinguished delegates.

Member states have given the United Nations Capital Development Fund a clear mandate through paragraph 33M.

Of the Compromiso de Sevilla.

You have encouraged UNCDF to provide catalytic concessional first loss capital to help the risk investments.

Shift the risk profile of early.

Stage markets in countries in special situations and pave the way for private finance through DFIs and MDBs. This is a strong political message. It acknowledges that the current international financial architecture does not work for the first mile.

It does not reach local businesses, small municipalities, or community level projects in LDCs and SIDS. UNCDF is stepping up to change this. We are deploying early stage capital to attract private investment into these markets.

We are building local financial systems and creating opportunities where others see only risk. But this effort cannot stop with us.

The broader financial system must also evolve.

It needs to channel more concessional finance where it can unlock private capital, support early stage markets, and ensure no one is left behind.

UNCDF stands ready to work with all partners to turn.

Commitments of paragraph 33 into real investments that improve lives on the ground. Thank you.

Thank you very much. I now invite the distinguished representative for Thailand. You have the floor.

Thank you. Co-chairs, now is the time for real and meaningful action. We need a global financial system that is fairer, more inclusive, and more resilient. I wish to emphasize three points. First, Thailand supports stronger representation of developing countries in financial institutions. As a committed member and shareholder of the World Bank Group, the Asian Development Bank, and the Asian Infrastructure Investment Bank, Thailand actively advocates for the interests of developing countries and supports quota realignment to better reflect today's global economic landscape. Thailand welcomes recent reforms by multilateral development banks to enhance financial support for developing countries in addressing urgent challenges such as climate change and inequality. We encourage MDBs to continue modernizing their operations to mobilize private investment and accelerate the SDGs through greater flexibility, innovation, and risk-sharing mechanisms. Second, Thailand calls for a more responsive and flexible global financial safety net. In times of crisis, it is often the small and developing countries that are hardest hit. Access to emergency financing must be faster, with fewer conditionalities, and with stronger provisions for long-term recovery. In this regard, we support strengthening the IMF's special drawing rights to improve crisis response with greater flexibility in reallocating SDRs to vulnerable nations for equitable access to liquidity. Third, Thailand believes sustainability must be at the heart of financial reform. We support the development of innovative financial instruments that promote climate action, digital transformation, and inclusive development. We have pioneered the issuance of sustainability bonds to finance green and social initiatives, including urban transit systems, water management, and pandemic recovery. In 2024, Thailand became the first country in Asia and the third in the world to issue a sustainability-linked bond, linking financial terms to ambitious goals such as cutting emissions by 30% and by deploying 440,000 zero emission vehicles by 2030. Co-chairs, bold action and strong political will are essential to transform financial architecture for the 21st century. As current chair of the Asia Cooperation Dialogue, We will host the ACD high-level conference later this year and the IMF World Bank annual meetings next year to provide key platforms to advance the global financial agenda. With shared commitment and cooperation, we can build a more just, inclusive, resilient financial system that empowers nations and delivers tangible benefits to our people. Thank you.

Thank you. I now invite the distinguished representative for Mexico, Ms. Vaqueros.

Thank you, Mr. Chair. Excellencies, distinguished colleagues, the fourth International Conference on Financing for Development is taking place at a decisive moment today, and now more than ever, can see the need to redesign international financial architecture to ensure that it is up to the challenge of sustainable development, that reflects the reality of our times, and that works for all. The legitimacy of the system depends on its ability to address the needs of our peoples, not only the signals of the market. Mexico believes that this transformation should advance according to three fundamental pillars. Firstly, more just, effective, and representative governance. The Bretton Woods institutions should reflect the diversity and weight of their members. We call for substantive reform in the voting system and the leadership system, promoting more balanced, transparent, and inclusive governance. Secondly, instruments that address the challenges of the 21st century. We support the reform of the IMF quotas as well as the reform of the global financial safety net. We support the countercyclical system of the IMF and precautionary systems, as well as the need to ensure predictability, accessibility, and swift access to financing. We agree that the MDBs should broaden their capacity to make loans, they should improve volumes, and improve terms for middle income countries with high levels of vulnerability and align financing with climate resiliency, inclusivity and sustainability aims. Mexico supports innovative financing such as SDG bonds and creation of sustainable taxonomy. We also are driving climate resiliency mechanisms and public infrastructure as well as other forms of security. We also highlight the need for greater transparency in methodologies for sovereign credits and multilateral loans. Also, this should be focused on development. We promote effective coordination between multilateral institutions so that we can preserve their mandates and improve coordination across the system. Excellencies, the urgency of the reforms are shared by a growing number of countries that are seeking a more just and responsive system as a way of addressing the challenges of our time. Technical tweaking is not enough. We need to have strategic vision, political will, and structural transformation that places development at the core of the system. Mexico reaffirms its commitment to a more just, effective, resilient, and humane architecture. I thank you.

Thank you, madam, for the intervention. I now invite the representative for Virginia Gildersleeve's International Fund NGO Committee on Financing for Development. You have the floor.

Thank you, Chair. I'm Anita Thomas, speaking on behalf of the Virginia Gildersleeve International Fund and the NGO Committee on Financing for Development, which I chair. At this critical moment, we must face hard truths. Today, 3.3 billion people live in countries where debt servicing exceeds spending on health or education, with borrowing costs 4 to 5 times higher than those of wealthier nations. 700 million people live in extreme poverty, and nearly 900 million children experience multidimensional poverty. Meanwhile, 2.6 billion remain offline, excluded from digital economies, while automation threatens jobs, especially for women and youth in the informal sector. These outcomes are not accidental, but stem from an international financial system that entrenches inequality through unfair debt rules, regressive taxation, opaque aid flows, and austerity measures dismantling social protections. Calls from the Pact for the Future and the Seville Commitment emphasize urgent reform to reimagine global financial systems to better serve people and the planet. Meaningful reform must focus on those historically excluded, ensuring genuine participation from developing countries and marginalized groups, alongside transparent monitoring and accountability where macroeconomic policy decisions translate effectively to improve people's lives and heal the planet. This participation must include regional coalitions, feminist movements, and Indigenous peoples, placing civil society at the core of accountability. While the Civil Outcome commits to advancing gender equality, women's economic empowerment, and the care economy, this will have limited impact unless resources reach communities that need them the most. For example, women's rights organizations receive less than 1% of gender-focused official development assistance, a critical gap in undermining social justice. Digital innovation offers promise for expanding fair, affordable financial services through AI, blockchain, and mobile platforms. However, safeguards are needed to prevent exclusion, particularly for women, youth, and marginalized groups. For the 1.4 billion people excluded from formal financial systems, these digital shifts could either bridge gaps or widen them. Developing and middle-income countries face credit rating biases, high borrowing costs, and limited financing for micro, small, and medium enterprises, crucial for job creation and resilience. Strengthening South-South cooperation and locally-led solutions is vital for inclusive and sustainable growth. Beyond voting share reforms, developing countries need vital real influence in global financial governance to shape agendas from the start. Credit rating agencies and regulators must integrate social, environmental, and human rights criteria to avoid penalizing investments in public goods and climate resilience. Let's civil be remembered not for promises, but bold action, amplifying the global South, dismantling entrenched controls and advancing development rooted in rights, dignity, justice, gender equality and sustainability, leaving no one behind. Thank you, Chair.

Thank you very much for the intervention. I now invite the representative for Children and Youth International. You have the floor.

Gracias, co-chairs. Distinguished delegates, I deliver this statement as a global focal point for the financing for development, children and youth constituency. We might be the last one to speak, but we are the frontline of the triple planetary crisis. We're here today as the inheritors, as the architects of a system that is waiting for us to build it. We come to share our visions and to extend our hand. We would like to come up with a different approach. from the one of the civil society mechanism. We welcome the Comprovis to Sevilla, and yes, the document could be stronger, do more, be more bolder. But let's not throw up the hopes of future generations on disagreement over things that could be improved. But let's drive forward implementation and accountability, so that for once, and finally, we can have financing that truly unlocks the right to development. Colleagues, on the 29th of June, we convene at the first Children and Youth Conference on Financing for Development. Through foresight approaches, we envision the future that we want and how to get there. And we're eager to share with you our soon to be published policy paper. We recognize that the current financial architecture was designed for a time with different challenges. But today, we need to renew hope for multilateral progress towards a reformed financial architecture guided by the principles of planetary and intergenerational equity. So what is the world that we're inviting you to build with us? It is a world where the Bretton Woods institutions have evolved into global bodies founded on the democratic principles. and guided not by GDP, but by a planetary health index. In this world, true prosperity and growth are measured not by endless extraction, but by the regenerative capacity of the ecosystem that sustain us. in this world that values clean air, biodiversity, education, health, and youth well-being as the foundations of a thriving economy. In this future, SDRs and the US dollar are transformed into a new nature-backed planetary asset currency and a tool that finances global public goods. It's a future where military facilities have been repurposed into centers for innovation and community care, where global children provides are provided with direct access support for the next generation of leaders. And it's a future where all creditor agencies operate under a multilateral agreed consensus, one rooted in justice, sustainability and human dignity, and finally breaking the cycle of harmful conditionalities and debt traps. And to get there, we invite you on these courageous steps. Scale action on all levels to build governance for IFIs, ensuring the voices of the global south and young people are not just heard, but equally at every decision. Second, rechannel SDRs based on vulnerability and need and ensuring that they are delivered as grants to foster resilience, not as highly taxed loans that deepen debt. Third, let us make a courageous choice for life and let us together redirect the trillions spent on military budget.

Thank you very much for the passionate intervention. We had to skip the some round up of the panelists intervention, but however, in the interest of time, the panelist from the Republic of Guinea, Mr. Silla, has requested for a two-minute to say his burning contribution. Thank you.

Thank you very much, co-chair. I wanted to take the floor to launch a solemn call to developing countries, especially African countries. We should not allow ourselves to be distracted by these summits and conferences or by unmet promises. It is urgent that we build a framework of trust that is robust so that we can attract investment into our countries. Asia did not develop thanks to assistance or aid. Asia didn't wait for there to be reform of the system in order to develop. Some would say that times have changed. That is not the case. The most recent case is Vietnam, and they used the same system to develop. We can achieve development but we should not rely systematically on others, but we should undertake reform ourselves. So let us not be distracted. The case of the Republic of Guinea is a very good example. With clear and forward-looking leadership, without corruption, we have been able to draw more than 20 billion U.S. dollars in investment, and this is now placed us at the top of the list in terms of rail infrastructure in Africa. This means that we should rely on ourselves to undertake reforms. We cannot let ourselves be distracted by these summits and unmet promises. I thank you once again.

Thank you for the passion, Your Excellency, Honorable Silla. We are now in the closing phase. Excellencies, distinguished delegates, Let me begin by thanking my co-chair and all the participants of this roundtable for the interesting and important contribution and commitment that they have made today. And I apologize for the late start, my early journey due to traffic hurdles of Seville. Apologies. At this point, I would like to make some closing remarks concerning our deliberations. Excellencies, my colleague co-chair will now proceed to give his closing remarks. Do you have closing remarks?

Yes, I do.

Okay, I'll do my closing remarks. Basically, okay, I'll go first. Basically, my closing remark has been summarized by the Honorable Minister Silla from Guinea, where We are talking about the reform of the global architecture, but as they say, it takes two to tango. As we are requesting reforms from this institution, we too at the receiving end, or as a partner in the process, must be reformed. We must put transparency, accountability in our governance architecture, as we are demanding the same from the IFIs. This session is not about the receiving countries, it's about the reform of the global architecture. And as such, we all know the current status quo is untenable, it's not fit for purpose, it has outlived its useful life, and it's now to retune it. We must walk the talk, and this should not be another talk shop. We should, at the end of this session, be able to come up with concrete actionable plans that this international financial architecture will be reformed to take on board the views of all the participants here, which have touched on different aspects, from the impact of the credit rating agencies to the programs imposed by the IFIs on developing countries, as well as the imbalances in the SDR allocations. So these long laundry lists, we, in the interest of time, will not say much. But what we need from this session is to walk the talk and ensure that there is delivery. Time is now. You have the majority of the global population being at the receiving end. And that is utmost inequity. We must reform these institutions to make the impact for the vulnerable and for the people who are not at the table and who cannot be heard. It is incumbent that this action must be now. And with that, I conclude. Thank you.

Thank you very much, dear co-chair. I'll just give a A few remarks also to close on my side. I just wanted to thank all the delegates and representatives for their participation and the panelists as well. It was a very interesting discussion. And I think the messages, also the final ones, were heard loud and clear. There is this sense of urgency in the reform of the international financial architecture that we all share to have a fair, to have an inclusive and a resilient system going forward. To some extent, I think this is starting today as well with an element or a push for the realignment of the strength of the voices. I think this is the first step towards actually, we were discussing yesterday with Rebecca, the fact that there is a realignment in the voices and in strength. That means that you can shape the future of the different institutions and of the actions that these institutions will take. be it in terms of the use and development of new instruments, be it in the re-evaluation of the different methodologies or the impact of rating agencies as well, amongst others. So what we do want here from the Spanish side and from the hosts of the Sevilla conference is that, again, this conference is not about talk or promises, but it's about action and particularly implementation of those actions that we are committing ourselves to today. So again, I think this would require a joint effort, joint responsibility, and Spain will do its utmost to walk the talk. Thank you very much.

Yes. I thank my co-chair for his remarks and all the participants and delegates. Excellencies, distinguished delegates, This roundtable six is the final multi-stakeholder roundtable of the fourth International Conference on Financing for Development. The summary of our deliberations in these discussions, as well as the summaries of the five other roundtables, will be presented to the closing plenary meeting of the conference this afternoon and included in the final report of the conference. We have thus concluded this multi-stakeholder roundtable, and I thank you for your kind attention. The meeting is adjourned.