Statement by H.E. Dr. Abdulrahman A. Al-Hamidy - Managing Indebtedness: Global Cooperation for Sustainable Economic Growth

Jul 19, 2026

Statement delivers a policy-oriented address at the Development Committee’s one hundred and eighth meeting, focusing on the risks of high indebtedness and the urgency of international cooperation. It outlines how rising debt-to-GDP figures threaten economic stability, worsen financing conditions through higher debt-service costs, and trigger spillovers that divert resources from healthcare, education, and infrastructure. It highlights the roles of the IMF, World Bank, regional bodies, and the Arab Monetary Fund in supporting debt management through finance, technical assistance, and coordinated, consistent policy conditions.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages3

Reading Time8 min

Managing Indebtedness: Global Cooperation for Sustainable Economic Growth

Debt Risks and Global Economic Interdependence

Consequences of Elevated Debt

Collective Solutions and Role of International Institutions

Debt Financing, Technical Assistance, and Policy Consistency

Arab Region Context and AMF Initiatives

High-Level Events and Knowledge Exchange

Public Disclosure Authorized Public Disclosure Authorized DEVELOPMENT COMMITTEE (Joint Ministerial Committeeof the Boards of Governors of the Bank and the Fundon theTransfer of Real Resources to Developing Countries) ONE HUNDRED AND EIGHTH MEETINGMARRAKECH,MOROCCO-OCTOBER 12,2023 DC/S/2023-0037 October 12.2023 Statement by H.E.Dr.Abdulrahman A.Al-HamidyDirector General Chairman of the Board Arab Monetary Fund # ! IziJlgzioARAB MONETARY FUND Statement by H.E.Dr.Abdulrahman A.Al-HamidyDirector General Chairman of the Board # Arab Monetary Fund October 12,2023Marrakech,Morocco # “Managing Indebtedness:Global Cooperation for Sustainable Economic Growth” It is a delight for me to attend this regular meeting,and I would like to express my gratitude and appreciationto the Development Committee Secretariat for the kind invitation.In the intricate tapestry of the globaleconomy,the impending specter of debt casts an unavoidable shadow.Iam privileged to address you todayon a matter of the utmost importance:the risks of debt and the imperative need for international cooperationto mitigate their effects.The complexities of our contemporary world necessitate a coordinated response,and it is with great humility that I offer my perspective on this pressing matter. The global economy is interconnected,with economic threads linking continents to bind nations inprosperity and vulnerability.In recent years,the increase in debt has emerged as a critical challenge,threatening the fundamentals of economic stability.According to the International Monetary Fund (IMF)estimates,the public debt-to-GDP ratio of emerging markets and developing economies increased from 51.4%in 2017 to 64.6%in 2022 while the total global debt-to-GDP ratio reached a record high of 254%,casting doubt on the ability of nations to meet their financial obligations without affecting the welfare oftheir citizens,especially with the significant increase of the debt service cost given the high interest rates. This specter of elevated debt brings about a cascade of consequences.National economies get stuck in acycle of debt servicing,which diverts funds from essential social expenditures such as healthcare,education,and infrastructure development.The instability of financial markets heightens the likelihood ofcontagion and increases the fragility of the global economic ecosystem.Under the weight of economicuncertainty,the capacity for dealing with economic disruptions diminishes,and the social contract betweengovernments and their citizens frays. While nations struggle individually with debt challenges,the solutions reside in collective action.International organizations recognize the situation's urgency,and global efforts to address the potential risksof excessive debt have gained momentum.The IMF,the World Bank(WB),the Group of Twenty(G20),regional organizations such as the Arab Monetary Fund (AMF),and other multilateral organizations areactively engaged in dialogue and initiatives aimed at mitigating the risks associated with high levels of debt.However,the effectiveness of these institutions depends on the level of coordination and cooperation theyinspire.Due to the interconnectedness of the global economy,a fragmented response will producesuboptimal outcomes.To effectively manage and reduce the risks associated with high indebtedness,it isessential that nations join to share burdens,knowledge,strategies,and best practices. International and regional financing and development institutions,such as the IMF,the WB,and the AMF,play a crucial role in assisting nations to navigate the complexities of debt management.These institutionsprovide financial resources,technical assistance,and policy advice to assist nations with debt-related issues.However,it is essential to ensure that the conditions related to financial support are consistent with therecipient countries'long-term economic goals and social welfare,avoiding excessive austerity measures

FAQs

Why does the statement emphasize the growing risks of debt?

It links higher debt burdens to threats against economic stability, increased debt-service costs, and doubts about countries meeting obligations without harming citizens’ welfare.

What are the main consequences of elevated indebtedness described in the statement?

It says debt servicing can crowd out essential social spending, increase financial market instability and contagion risk, and weaken governments’ ability to handle disruptions while eroding the social contract.

How does the statement propose tackling the debt challenge?

It argues solutions require collective action—shared burdens, knowledge, strategies, and better coordination among nations and multilateral institutions to improve outcomes.

Jul 19, 2026

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