FM Raises Developing Countries’ Debt Problem and Calls for Multilateral Coordination

Speaking at the inaugural session of the G20 Finance Ministers and Central Bank Governors Meeting (FMCBG), Sitharaman discussed how multilateral development banks (such as the IMF and World Bank) can help address common global challenges of the 21st century. We also asked for feedback on how we could improve. With a focus on the Sustainable Development Goals and poverty eradication.

In his opening remarks, Mr. Sitharaman called the G20 the power of “a forum for collective good and listening to the voices of the global South,” with a focus on finding more holistic solutions to the most pressing global challenges. said to concentrate. “Helping countries most in need and reflecting their concerns and aspirations for developing countries will be central to our efforts,” she said.

Discussions in the first session of the G20 FMCBG meeting focused on issues related to international financial architecture, sustainable finance and infrastructure. Finance Ministers also sought the views of G20 countries on policy initiatives that could be instrumental in enabling financing for the Sustainable Development Goals, and on how to mobilize timely and appropriate resources for climate finance. rice field. The minister also spoke on India’s priorities for financing tomorrow’s cities and shared with 20 developed and developing countries about their national policy experiences on financing tomorrow’s inclusive, resilient and sustainable cities. I tried to explore the views of the country.

“FM Smt @nsitharaman solicited the views of ministers and governors on how to strengthen #MDBs to address the #SharedGlobalChallenges of the 21st century while maintaining focus on #SDG and #PovertyEradication,” said Ministry of Finance said in a series of tweets.

“The FM stressed the rise of #DebtVulnerbilities in many vulnerable countries, sought input from #G20 members on #MultilateralCoordination, and said that managing global debt vulnerabilities is of critical importance to the global economy. It says it does,” said another tweet.

The 52 low- and middle-income developing countries that make up more than 40% of the world’s poorest are in or at risk of a debt crisis, according to a new policy brief released Wednesday by the United Nations Development Program (UNDP). is in a high state. According to the report, governments in 25 developing countries have foreign debt servicing exceeding 20% ​​of their gross income. This is the highest number of countries in more than 20 years, adding that a 30% haircut to public external debt outstanding in 2021 could help save money. $148 billion in debt service over eight years.

In December 2022, the World Bank announced annual debt service payments for the world’s poorest countries at $62 billion, up 35% from the previous year, and warned of rising risks of default. India’s neighbors Sri Lanka, Bangladesh and Pakistan have sought bailout from the IMF over the past year. COVID-19 Pandemic and Russia –Ukraine war.

Debt restructuring associated with debt restructuring inflation Earlier this week, the International Monetary Fund (IMF)’s Kristalina Georghiba also cited managing and leveraging digital advancements as a key policy priority. Under the G20 Presidency, India has sought ways to address the exacerbated debt vulnerabilities facing developing countries, largely due to ongoing geopolitical tensions and the pandemic.