Nirmala Sitharaman: Managing global debt vulnerabilities remains a big concern, says Finance Minister

2023-08-11 19:11:36

Multilateral development banks (MDBs) are facing increasing demands from donor and borrowing countries to expand their lending operations beyond their core development mandates.

An independent expert group, steered by finance commission chairman NK Singh and former US treasury secretary Lawrence Summers, formed to examine ways to strengthen MDBs has recommended tackling global challenges alongside core MDB missions of poverty reduction, tripling the sustainable lending level by 2030 and improving capital adequacy for MDBs by infusing funds.

“Implementing these recommendations within each MDBs 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,” finance minister Nirmala Sitharaman said. She was delivering the keynote address on the G20 Finance Track National Event titled “Seminar on the Global Economy: Challenges, Opportunities and the Way Forward”.

Sitharaman also touched upon debt issues for vulnerable economies which she said possess significant economic risks to the sustainable development of these economies. “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,” she said.

The international community must collaborate and find stronger ways to coordinate debt restructuring for low income and vulnerable middle-income countries facing debt distress,” Sitharaman said.

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