Vice President Uz Hussain Mohamed Latheef, has urged international financial institutions to adopt fairer credit rating systems and expand debt relief measures for Small Island Developing States (SIDS), during a key side event at the Fourth International Conference on Financing for Development (FfD4) in Seville.

Speaking at the Maldives-hosted event, “Empowering MSMEs in SIDS through Grants: Lessons from the Maldives Experience,” the Vice President focused on the structural challenges facing island economies. He highlighted the urgent need for SIDS to be given equitable representation in global financial decision-making processes, pointing out that current mechanisms often overlook the unique vulnerabilities of small island nations.

The Maldives’ presentation at the forum also outlined how domestic strategies are being employed to strengthen resilience through the empowerment of Micro, Small and Medium Enterprises (MSMEs). These businesses, which make up 90 per cent of the country’s registered enterprises, have been targeted through policies that expand access to finance, training, and market opportunities.

Among the initiatives discussed was the Creative Economy Strategic Action Plan, designed to support innovation and entrepreneurship, particularly in island communities. The second phase of the Fashaa Madhadhu Loan scheme has also been launched, with a significant portion of funding allocated to women entrepreneurs, including those with disabilities.

Alongside local efforts, the Maldives reiterated its call for debt justice and more accurate credit evaluations that reflect the economic and environmental realities of SIDS. The Vice President’s address underscored the Maldives’ position that sustainable development cannot be achieved without inclusive, responsive, and fair international financial structures.

The FfD4 Conference, running from June 30 to July 3, brings together policymakers, financial experts, and development partners to explore financing solutions for global sustainable development, with a focus on vulnerable and climate-impacted economies.