SIDS are on the frontline of a global systemic crisis, where climate vulnerability and debt distress reinforce each other. Current international debt-relief mechanisms are inadequate—reactive, narrow, and overly dependent on rigid indicators like income per capita, failing to capture SIDS’ structural fragility.
The DSSS offers a transformative solution through debt restructuring, resilience-investment financing, insurance tools, and expert advisory services. It frees scarce public resources from debt service and redirects them to long-term resilience investments such as renewable energy, nature-based solutions, education, health systems, and adaptive infrastructure.
In doing so, the DSSS strengthens SIDS’ ability to withstand future shocks and builds the foundation for inclusive, green, and sustainable growth.
As recognized in the ABAS, many SIDS face persistent challenges related to debt vulnerability.
This limits the ability of governments to proactively manage debt portfolios, integrate climate and disaster risks into fiscal planning, and engage effectively with creditors and international financial institutions.
Strengthen debt sustainability
Increase fiscal space for resilience investments
Integrate climate vulnerability into debt treatment
Support access to concessional and innovative financing
Initial deployment of advisory services
Development of AI-based tools
Implementation of debt restructuring and resilience investment strategies
Expansion of insurance and risk protection mechanisms
2025
Initial Cohort of 10 Pilot Countries
Antigua & Barbuda
Grenada
Suriname
Fiji
Palau
Tonga
Tuvalu
Maldives
Mauritius
Seychelles
