UAE discusses ways to alleviate debt burden of countries in need

The Ministry of Finance (MoF) has participated in the G20’s virtual Fifth International Financial Architecture meeting, to discuss the latest international efforts to mitigate the repercussions of the COVID-19 pandemic, and to alleviate the debt burden for countries in need.

The Ministry of Finance led the UAE delegation, which included UAE Central Bank and Abu Dhabi Fund for Development representatives. G20 members, international organisations, invited countries and additional guests including Kuwait and Paris Club Secretariat also attended the meeting.

The Ministry noted that since the early days of the COVID-19 outbreak, the UAE stood at the forefront of international relief efforts by providing financial and non-financial support to more than 100 countries. MoF also reiterated its readiness to further collaborate and explore define the exceptional policies and measures that must be taken to support countries towards a strong, sustainable, and accelerated global economic recovery.

The UAE also encouraged the G20 and the International Organisations involved to continue to explore other forms of support that will lead into accelerating the reviving of capital flows. This includes investments and maximising the benefits of fiscal technical assistance to help countries cope with the financial pressure, and complement the Debt Service Suspension Initiative (DSSI) efforts, especially as the DSSI evolves into a financing support programme.

Two sessions were held to provide the necessary updates regarding the implementation of the G20 Debt Service Suspension Initiative and to deliberate over the proposed next steps to continue to support the financing strategies for countries in need in the aftermath of the COVID-19 outbreak.

The members agreed to further study the planned next steps to extend the international financial support for countries in need.

They will report back in the upcoming meetings before agreeing on the final form of the revised initiative to be approved by the G20 Finance Ministers and Central Bank Governors. It will then be presented, later in the year, to the world leaders as part of the G20 Finance Action Plan.

As part of its commitment to boost the initiatives it runs in alignment with the strategic directives of the UAE government, the Ministry of Finance (MoF) announced on Wednesday the launch of the next phase of the Mohammed Bin Rashid Innovation Fund (MBRIF), which aims to manage and operate the fund and its programmes under one national umbrella.

The next phase will create an integrated work environment that supports innovation, and will integrate all the services the fund provides in a way that benefits its innovative members - another step that helps achieve the UAE’s aspirations to be among the best countries in the world. During this phase, the Emirates Development Bank (EDB) will operate the two programmes of the MBRIF, namely the Innovation Accelerator programme and the Guarantee Scheme.

Younis Haji Al Khoori, Undersecretary of the Ministry of Finance, noted the importance of this launch, as it activates the fund’s role in supporting the UAE’s transition to a knowledge-based economy. It will also help create solutions that support the objectives of the UAE Centennial 2071 and the UAE National Innovation Strategy, thus achieving the UAE’s development vision to be among the most innovative countries in the world.

He said: “MoF is keen to contribute to the UAE’s future by bolstering its innovation system, and working closely with the public and private sectors to enable them to innovate in the country. This launch comes within the ministry and the EDB’s continuous efforts to link and integrate all of the fund’s services, in a swift and easy manner, under one national umbrella that falls in line with the UAE government’s plans and strategies.”

Faisal Al Bastaki, CEO of Emirates Development Bank (EDB) said, “The launch of this new phase is part of our mandate to manage and operate MBRIF under one umbrella, providing end-to-end support for startups through the Innovation Accelerator programme and the Guarantee Scheme funding programme which is guaranteed by the Government.”

WAM/Agencies