‘Need global effort to restructure debt of poor nations’: Nirmala Sitharaman
The Indian presidency of the G20 has placed great importance on the management of global debt vulnerabilities that many nations are facing today.
MUMBAI: Union Finance Minister Nirmala Sitharaman on Friday, (August 11) called for concerted global efforts led by rich nations to help indebted countries deleverage at a time when multilateralism is the most potent challenge.
Addressing online a G20 session, organised by the Finance Ministry and the Reserve Bank here, ahead of the grouping’s summit next month in New Delhi, Ms Sitharaman said multilateralism faces the biggest challenge in recent years. “We haven’t seen such enormous challenges in recent years at all”. The Finance Minister said India had ensured that so far the geopolitical differences do not supersede international cooperation which is the core mandate of the G20 grouping and the summit.
The Indian presidency of the G20 has placed great importance on the management of global debt vulnerabilities that many nations are facing today. It’s time the international community collaborate and find stronger ways to coordinate in debt restructuring efforts for low-income and vulnerable middle-income countries facing debt stress and vulnerabilities, the Minister said, noting that multilateral lenders are facing many a challenge in arriving at such solutions.
Speaking at the same event, Reserve Bank Governor Shaktikanta Das pitched for the expeditious completion of the 16th general review of the quotas at the International Monetary Fund (IMF), pointing out that the same can help the multilateral lender assist distressed countries in a better way. He said the funding conditions of the IMF are such that they make the country that needs the money urgently look elsewhere because those conditions come with lots of riders and attendant stigmas.