[Source: Fijian Government]

The Small States need development loans that will sustain them until 2050 says Minister for Economy Aiyaz Sayed-Khaiyum.

Sayed-Khaiyum says by then the Small States need to reach their net-zero goal for carbon emissions, and well beyond.

While chairing a virtual Small States Forum, the Minister highlighted that the pandemic underscored that concessional financing is critical for countries that are uniquely vulnerable to external shocks.

He adds that concessional financing should include greater access to grants because the financial burden on Small States will be substantial no matter how attractive the terms of the loans are.

Sayed-Khaiyum says it now remains to be seen whether the World Bank will provide an omnibus toolkit that will go a long way towards addressing all of these challenges.

He adds these should include ultra-long-term concessionary financing instruments that capitalise on low-interest rates and positions Small States to repay over 50-year periods.

The minister believes the pandemic’s disproportionate and deepening impact on Small States warrants an even more nuanced and differentiated approach from the international community.

He says they’ll use such Forums as an important platform to engage Multilateral Development Banks and solicit the levels of support that Small States will need for the foreseeable future.