Finance Minister Nirmala Sitharaman calls for concerted global efforts to restructure debt for poor countries

Union Finance Minister Nirmala Sitharaman. File photo
| Photo Credit: PTI

Union Finance Minister Nirmala Sitharaman on Friday, August 11, 2023 called for concerted global efforts led by rich nations to help indebted countries deleverage at a time when multilaterism 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 multilaterism faces the biggest challenge in recent years. “We haven’t seen such enormous challenges in recent years at all”.

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The Finance Minister said New Delhi 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.

Calling for concerted efforts to ensure the future is better for all, she said a common thread in the current G20 agenda is preparing for a better tomorrow for all and noted that during the presidency, New Delhi so far ensured that the common ground is reached on all economic issues especially in finding a solution to the debt overhang that many middle-income countries are facing today.

Another consistent effort has been to address the challenges arising from the challenges to multilaterism that multilateral lending agencies are facing today as they are increasingly facing demands from both borrowers and lending nations to expand their core operation beyond their core developmental mandate. The G20 has set up an expert group to find out some lasting solutions.