President Ruto pushes for International Financing System reforms in address at UN General Assembly

President Ruto who spoke on Thursday while addressing the United Nations General Assembly (UNGA) in New York called for debt restructuring by giving a 10-year grace period to tens of African nations in debt distress. 

He cited the International Monetary Fund (IMF) data which projects that over 3 billion people are in the blink of falling into distress and in need of global intervention.

“No meaningful climate action or development can take place in conditions of financial distress. According to IMF data as of last month, 10 low-income countries were in debt distress, and 52 are at high and moderate risk of falling into distress,” Ruto stated.

“The 3.3 billion people in these countries are trapped in a vicious cycle of emergency responses, reconstruction, and recovery from more frequent climate shocks, which diverts resources away from both development and climate action and sucks vulnerable countries into a downward spiral of debt and environmental stress.”

President Ruto added: “The global community must therefore develop a debt restructuring initiative that does not wait for nations to plunge over the cliff before providing relief. Rather, the new sovereign debt architecture should extend the tenor of sovereign debt and provide a 10-year grace period.”

The president also called for global action to help Haiti from plunging into chaos as he urged the nations to unite and support vulnerable nations such as Libya and Morocco.

“Doing nothing, in the face of the historic isolation, neglect and betrayal of the people of Haiti is out of the question. Inaction is no longer an option. As we mobilise to show up for Ukraine, and countries that have experienced the devastating impact of climate shocks including Libya, Morocco and Hawaii, we must not leave Haiti behind,” he noted.

“We must commit to show up in the spirit of solidarity to support a people to regain their political and socioeconomic footing, by reinforcing the underlying enabler: security. Kenya is ready to play its part in full, and jointly with a coalition of other nations of goodwill, as a great friend and true sibling of Haiti.”