He added the reason behind it is that their GNI per capita exceeds the current threshold for small island economies.
“We are barred from receiving loans from the International Bank for the Reconstruction and Development because the World Bank has determined that our economy does not generate sufficient revenue to service new loans.”
President Aingimea went on to question “Why are other countries given access to these financing tools and not Nauru?”
He also said that Nauru may be an extreme case, but it is well in line with experience of many developing countries, which, despite the best development plans cannot access the financial resources to implement them.
“This state of affairs was shameful before the pandemic, but it is now a crisis in its own right. Years, perhaps decades of economic gains across the developing world could be at risk without a rapid response from the Bretton Woods Institutions to relieve countries of unsustainable debt burdens and provide fiscal resources for a robust economic recovery.”
“We need a global financial system that is more responsive to the urgent needs of developing countries and I strongly urge you to take on this issue as part of your effort to reaffirm multilateralism.”
Nauru is one of the smallest UN member states with a population that is estimated roughly at 11,000 and the expected growth of 4.5% which by 2050, the country will have 27,000 people.