Panel discussion 2 on specific actions in the first draft of the outcome document on ‘II.E. Debt and debt sustainability’

Introductory remarks and moderation

H.E. Ms. Merete Fjeld Brattested, Permanent Representative of Norway to the United Nations

H.E. Mr. Chola Milambo, Permanent Representative of Zambia to the United Nations

Panelists

Mr. Phil Stevens, Foreign, Commonwealth & Development Office, United Kingdom

Ms. Monica Asuna, The National Treasury, Kenya

Mr. Jose Correia, Director General, Economic and Development Cooperation, Cabo Verde

Discussants

Mr. Gianpiero Leoncini, Executive Vice-President, Development Bank of Latin America and the Caribbean

Interactive discussion (2-minute time limit)

Background and Guiding Questions

Amid successive crises and shocks, sovereign debt challenges have become one of the greatest obstacles to realizing sustainable development. Many developing countries face high debt service burdens and borrowing costs, which severely constrain their fiscal space and ability to address poverty and inequality and invest in sustainable development. Despite progress in reforming the debt architecture, restructurings are often still inadequate, late and too lengthy. A development-oriented debt architecture, based on sound and transparent analysis of debt sustainability, is urgently needed to address these debt challenges.

The debt chapter outlines four areas of actions to address these challenges, including actions to: i) strengthen debt management, debt transparency, and responsible borrowing and lending; ii) lower borrowing cost and enhance fiscal space for investment in sustainable development in developing countries; iii) achieve efficient, fair, predictable, coordinated, timely, and orderly restructurings; and iv) promote debt sustainability and credit assessment that are more accurate, objective and long-term oriented.

Panelists in this session are invited to pay particular attention to the proposals on strengthening and systematizing of liquidity and liability management support and on closing gaps in the debt architecture. They are invited to address the following questions:

• What are the key constraints to scaling up and ensuring coordinated support to countries to enhance fiscal space and lower their cost of borrowing, and to provide related financial instruments, such as debt swaps and credit enhancements at scale? (action 42)
• How can we provide such support at scale, taking into account the need for providing financial support, and for responsiveness to country-specific needs and circumstances? (42b)
• What are the most critical gaps that need to be closed to create a development-oriented debt architecture? (action 43).

Programme

Panel discussion 7 on specific actions in the first draft of the outcome document on ‘II.B. Domestic and international private business and finance’

Introductory remarks and moderation

H.E. Ms. Merete Fjeld Brattested, Permanent Representative of Norway to the United Nations

H.E. Mr. Chola Milambo, Permanent Representative of Zambia to the United Nations

Panelists

Mr. Ramon Boone, Ministry of Finance, Belgium

Mr Anthony Swan, Director, Development Finance and Economics, Department of Foreign Affairs and Trade, Australia

Discussants    

Mr. Thomas Beloe, Director, Sustainable Finance Hub, UNDP

Interactive discussion (2-minute time limit)

Background and Guiding Questions

Private business activity, investment, and innovation have acted as significant drivers of sustainable development since the adoption of the Addis Agenda. Nonetheless, global investment growth has decelerated in recent years. Despite increased attention to innovative finance instruments such as blended finance and the growing adoption of sustainable business and finance legislation, investment in sustainable development has fallen short of expectations, nor have companies and investors adequately prioritized sustainable development.

The first draft of the outcome document commits to actions to address key barriers: underdeveloped financial and capital markets in many developing countries; insufficient access to concessional and affordable finance, particularly for women, marginalized groups, and micro, small, and medium-sized enterprises; and the continued misalignment between short-term financial incentives and long-term sustainable development impact. Actions include enhanced capacity support, and adoption of policy frameworks and incentives for sustainable private investment at national and global levels.

Panelists in this session are invited to pay particular attention in their interventions on the proposals on SME and local currency financing, on private capital mobilization for sustainable development impact and standardization of relevant instruments, and on the business case for sustainable business and finance and relevant regulations. They are invited to address the following questions:

• What practical steps can be taken to strengthen domestic financial markets and local economies - including local banks - to expand MSMEs’ access to affordable credit, particularly in developing countries? (action 27g)
• How can the availability of local currency lending be increased to mobilize additional private capital for sustainable development, and what role should MDBs and DFIs play in scaling these efforts, including in improving impact? (action 28l, 31n)
• How can innovative financing mechanisms (e.g. blended finance, impact investment, and thematic bonds) be scaled and made more accessible to investors, to support sustainable development investment? (action 28g)
• How can governments and regulators build the right enabling environments and regulatory frameworks for sustainable business and finance, in alignment with both national development priorities and international standards for cross-border investment? (action 29 d-g)