G20 Summit: The debt issue, according to Prime Minister Narendra Modi, is a major concern for everyone in the globe, particularly developing nations. The Indian Prime Minister stated that India intends to construct a framework to aid low-income economies that are burdened by debt during the upcoming G20 conference, which will be held in New Delhi. In an exclusive interview with PTI last week, the PM stated that India’s G20 chair has aided in highlighting the necessity of addressing the global difficulties brought on by the debt crisis facing the world, particularly for nations in the Global South.
Focusing on Financial Discipline and Debt Relief Efforts Amid Global Concerns
Modi added, “The debt crisis is indeed a matter of great concern for the world, especially developing countries. Citizens from different countries are keenly following the decisions being taken by governments in this regard. There are some appreciable results too.” He elaborated on the findings by pointing out that countries who have had or are presently experiencing a debt crisis have begun to place a higher priority on financial discipline. He continued by saying that other nations are cautious to avoid making the same errors that some countries did, which led to the debt crisis. Notably, India has made use of its G20 leadership to emphasise the necessity of creating a framework for debt restructuring to support countries dealing with severe financial problems. A growing number of member nations are stepping forward to assist low-income countries cope with the crisis, the report said, but China, who is estimated to be the largest sovereign creditor in the world, has shown some resistance to some ideas on debt restructuring.
Global Debt Crisis Solutions and India’s Role in Debt Restructuring
According to estimations cited in the paper, more than 70 less developed countries are bearing a $326 billion debt load collectively. The PM mentioned that the progress made in the treatment of debt for common framework countries as well as nations outside the framework has been discussed by G20 finance ministers and central bank governors. “We have also been greatly sensitive to the needs of our valued neighbour, Sri Lanka, during their tough times,” Modi said. Further, to take ahead debt restructuring efforts at the global level, the Global Sovereign Debt Roundtable was launched earlier this year. The roundtable is a joint initiative of the IMF, World Bank, and the G20 Presidency. The PM stated that these initiatives will improve communication among key stakeholders and support good debt management. PM Modi was confident that raising public awareness will prevent similar events from happening again. While a lot is being done to solve these challenges, he continued, “Although I said earlier, I am confident that growing awareness among people in various countries will ensure that such circumstances don’t frequently recur.” IMF Director Kristalina Georgieva demanded an immediate debt restructuring procedure for weak and vulnerable nations earlier in July.
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