DNVN - Climate change is seriously threatening the survival of many small island nations in the Pacific . Faced with this urgent situation, Australia has taken positive steps to support neighboring countries in coping with the negative impacts of climate change.
Accordingly, starting from 2025, the Australian government will provide these countries with the opportunity to temporarily suspend debt repayments in the event of natural disasters, thereby helping them maintain economic stability and recover from disasters.
According to an announcement from the Australian Department of Foreign Affairs , the "climate recovery debt clause" will be applied to loan agreements between the Australian government and other countries by the end of 2025. This clause helps small and vulnerable countries to recover economically through debt relief when faced with natural disasters.
In recent years, bilateral and multilateral creditors have also adopted similar provisions to ease the pressure on small countries in financial difficulty.
Last year, several major financial institutions such as the World Bank (WB) and the Inter-American Development Bank announced the adoption of debt recovery provisions in loan agreements.
There are currently 44 countries eligible for the World Bank's debt relief provision in the event of a natural disaster, many of which are Australia's neighbours such as Vanuatu, Nauru, Kiribati and Fiji.
Australia is one of the largest donors and lenders to the South Pacific region - which is heavily impacted by climate change, with many countries facing huge financial pressures.
Last year, the UK also announced its first climate-related debt facility for Senegal and Guyana, and is expanding the facility to 10 more countries.
Viet Anh (t/h)
Source: https://doanhnghiepvn.vn/quoc-te/australia-an-han-no-cho-cac-nuoc-chiu-anh-huong-cua-bien-doi-khi-hau/20240927083155259
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