The president of Cuba, Miguel Díaz-Canel, demanded this Wednesday the relief of the foreign debt that represents a serious threat to the development of the members of the G77, a bloc chaired by the Caribbean country.
He pointed out that unsustainable debt drags the majority of the Global South towards an economic abyss, and that the current financial architecture is not ready to provide the response that these nations need.
A step in that direction would be to redesign and recapitalize multilateral banks to assist developing countries, said the president while warning that this refinancing would not be enough to cover the needs of 80 percent of the world’s population, grouped in the members the negotiating bloc.
He stressed on the need for an effective and inclusive solution with the participation of all creditors so that Southern countries, particularly middle-income countries, with billions of dollars of their own domestic savings, invest in their development.
Díaz-Canel also recognized as essential steps a reform of the current governance system and the governance structure of international financial institutions, especially the International Monetary Fund.
He assessed the voting system based on economic-financial power as no longer sustainable. In this regard, he said emphasized on the need for an improved architecture of global sovereign debt with significant participation of developing countries, as well as inclusive and effective platforms to design and debate international tax rules and regulations at the United Nations.
The G 77, he emphasized, hopes that this dialogue urgently fosters the political will to implement what is necessary to overcome what it described as one of the most complex crises that humanity has witnessed.
