First Advisory Committee Meeting - Arab Voices for a Progressive Financing for Development: Realities and Prospects of a Debt Crisis in the Arab Region

Globally, the onset of the Covid-19 pandemic in 2020 and the Russia-Ukraine war in 2022 have been responsible for much of the increase in public debt in recent years. [...] This adds to the liquidity challenges in the region, and limits the ability of the state to engage in development spending. [...] It also emphasizes the importance of sovereign debt restructuring as a tool for countries to overcome financial crises, and it advocates for a process that respects the sovereignty of the indebted nation while ensuring that the interests of both the debtors and creditors are fairly considered. [...] The meeting aims to deepen the conversation about debt and its dynamics among various stakeholders, namely civil society organizations (CSOs) in the Arab region, by highlighting the key challenges to debt sustainability in the region and exploring the existing frameworks to debt management in terms of the debtor country’s ability to effectively pursue the SDGs and climate ambitions. [...] Niranjan Sarangi – ● What is the Debt Swap mechanism, and what are its objectives? Senior Economic Affairs Officer, Shared ● What is the potential impact on sovereign debt management in the Arab region in the Economic Prosperity Cluster, UNESCWA context of climate action and the pursuit of the SDGs? Q&A Moderator: Dr.