New Delhi, Apr 14 (Agency) The G20 Finance Ministers and Central Bank Governors (FMCBG) in its second meeting under Indian Presidency have discussed measures to strengthen multilateral coordination towards addressing the increasing debt distress in low-income and vulnerable middle-income countries. Held on the margins of the 2023 Spring Meetings of the International Monetary Fund and the World Bank Group in Washington on April 12-13, the FMCBG also discussed the key challenges to the global economic outlook, including the war in Ukraine, food and energy insecurity, climate change, and recent risks to financial stability. Members agreed that the G20 can contribute to building a common understanding on fostering a conducive environment for global economic recovery, and ensuring that the most vulnerable countries and sections of the population are adequately protected. Union Finance Minister Nirmala Sitharaman and Reserve Bank of India (RBI) Governor Shaktikanta Das jointly chaired the meeting. The meeting saw participation of around 350 delegates from G20 members, 13 invitee countries, and various international and regional organisations.
The meeting was organised in three sessions covering the global economy, international financial architecture, sustainable finance, financial sector, financial inclusion, and international taxation. “The goal of this FMCBG meeting was to deliberate on the progress made by the various workstreams of the G20 Finance Track on the deliverables that were tasked to them by the Ministers and Governors in the February G20 FMCBG Chair’s Summary and Outcome Document and to seek guidance on the way forward,” said a statement from Finance Ministry.
During the session on Sustainable Finance, Financial Sector, and Financial Inclusion, the FMCBG discussions focussed on the mobilisation of resources for climate change, the role of the multilateral financial institutions in catalysing private finance flows for Sustainable Development Goals and the role of the G20 in scaling up and encouraging wider adoption of social impact investment instruments. Members also deliberated on the macroeconomic and financial challenges posed by the crypto-assets ecosystem and exchanged views on potential global policy responses to crypto-assets, taking into account the risks, especially to emerging markets and developing economies (EMDEs). The session on International Taxation discussed the need for coordinated efforts toward effective implementation and wider adoption of the two-pillar international tax package. Ministers shared suggestions on how best G20 can complement global efforts to enhance tax transparency.