FM highlights rising debt vulnerabilities in G20 Finance meet

FM highlights rising debt vulnerabilities in G20 Finance meet

Subject : International Relations

Section : International Events

Concept :

• Speaking at inaugural session of the G20 finance ministers and central bank governors (FMCBG) meeting, Finance Minister highlighted rising debt vulnerabilities in many developing countries and sought views from G20 member nations on ‘multilateral coordination’ for managing the burden.
• Sitharaman also sought views on how multilateral development banks, like the IMF and World Bank, can be strengthened to address shared global challenges of the 21st century, while maintaining a focus on Sustainable Development Goals (SDGs) and poverty eradication.

First G 20 Finance meet

• First G20 Finance Ministers and Central Bank Governors under India’s G20 Presidency meeting began in Bengaluru.
• The discussions of the first session of G20 FMCBG meeting focused on issues relating to international financial architecture, sustainable finance and infrastructure.

G20 Finance Track 2023

• G20 Finance Track discusses global macroeconomic issues through its meetings of Finance Ministers and Central Bank Governors, their Deputies and various working group meetings.
• Some of the key issues dealt by the Finance Track are
  • Global economic outlook and monitoring of global economic risks;
  • Reforms for a more stable and resilient global financial architecture;
  • International taxation;
  • Financing quality infrastructure;
  • Sustainable finance;
  • Financial inclusion;
  • Financial sector reforms and
  • Financing for future health emergencies and investments in pandemic prevention, preparedness and response.

G20 Finance Track Achievements

• Some of the key achievements of the Finance Track especially in the post-pandemic phase are-
  • Debt Service Suspension Initiative (DSSI),
  • Common Framework for debt treatments beyond DSSI,
  • G20 Sustainable Finance Roadmap,
  • Two pillar solution to tax challenges arising from the digitalization of the economy,
  • G20 principles for quality infrastructure investment,
  • Proposal to create a Financial Intermediary Fund (FIF) for pandemic PPR etc.

Note : India’s G20 Presidency Theme is “Vasudhaiva Kutumba-kam” or “One Earth One Family One Future”.