Mumbai, Aug 11 (Mayank Nigam) Noting that the high debt level of poor countries poses risks to their sustainable development, Finance Minister Nirmala Sitharaman said on Friday that the international community must collaborate and find stronger ways to coordinate debt restructuring for low-income and vulnerable middle-income countries facing debt distress. Addressing the G20 Event on Global Economy: Challenges, Opportunities, and the Way Forward in virtual mode, the Minister said the Indian G20 presidency has placed great importance on the management of global debt vulnerabilities, demonstrating a commitment to voicing the concerns of the global south. Sitharaman said a primary focus of India’s G20 presidency in 2023 has been to strengthen multilateral development banks (MDBs) to address the shared global challenges of the 21st century.
The Minister said that MDBs are facing increasing demands from donor and borrowing countries to expand their lending operations beyond their core development mandates. “However, MDBs are currently not equipped to address this rising demand for their resources adequately. To explore possible solutions that can constructively contribute to the efforts that MDBs are undertaking, the Indian G20 Presidency set up an expert group on strengthening MDBs,” she noted. Referring to the recommendations given by the expert group, Sitharaman said these suggestions, if implemented within each MDB’s governance framework, can significantly enhance their capacity to address diverse financing challenges in the future with a focus on the priorities of the global south. She stated that India has been holding the G20 Presidency for more than eight months now, and during these months, India has helmed and piloted a huge amount of work under various G20 tracks. “The Finance Track has seen the delivery of a sizeable number of outcomes, most of which will contribute to addressing the present and emerging global economic challenges,” the Minister said.