Statement: FfD Interactive Debate on Debt

Statement by Mr. Oddur Stefansson
Specialist at the Ministry for Foreign Affairs of Iceland
4rd Preparatory Committee for Financing for Development
Interactive debate on debt
30 April, 2025

Thank you Madame Co-facilitator, 
 
I am pleased to deliver this statement on behalf of Iceland.  
 
On the topic of debt and cost of borrowing, it is important that debt is a strong tool for development, and not an obstacle, as was well underlined by Mr. Correia. 

We would like to stress the importance of technical assistance and capacity building. Strong debt management units and sound regulatory environments, are important not only for increasing the resilience of economies, but also for creating favorable investment conditions that are necessary to attract private capital.

The linkages between debt and DRM are clear. To the point made by Mr. Stevens, enhanced domestic resource mobilization through progressive, pro-poor fiscal systems is vital to increase government revenue and enable governments to robustly manage their debt. 

Increased transparency and communication on debt in the context of restructuring is vital to ensure speed, efficiency and to limit negative spillovers on fiscal space and credit ratings. The same goes for innovative solutions like debt swaps, bearing in mind the point made by Ms. Asuna on the potentially prohibitively complex legal requirements. Technical assistance is integral in this regard as well. 

In closing, it is important that the FfD outcome document further builds on existing solutions, such as the G20 Common Framework, and accelerates the ongoing work to improve their effectiveness and timeliness. Existing solutions are not static entities and it is in our hands to work together to improve them to make them more fit for purpose to deliver the development outcomes needed.
 
Thank you.