Forward of the G20 summit, Prime Minister Narendra Modi mentioned that India seems at constructing consensus to evolve a framework to assist debt-ridden low earnings economies.
Important emphasis was positioned on addressing the worldwide challenges posed by debt vulnerabilities particularly for the World South, mentioned Modi throughout an interview to PTI.
Modi emphasised that debt disaster is a matter of nice concern for the world.
“The debt disaster is certainly a matter of nice concern for the world, particularly growing international locations. Residents from totally different international locations are keenly following the choices being taken by governments on this regard. There are some considerable outcomes too,” mentioned Modi.
He identified that these international locations which have gone by way of debt disaster earlier than offers larger significance to monetary self-discipline. “Others who’ve seen some international locations dealing with powerful instances as a result of debt disaster are aware of avoiding the identical missteps,” mentioned Modi.
The necessity for a framework on debt restructuring inorder to assist international locations dealing with debt points was highlighted by India underneath its G20 presidency.
Although G20 member international locations are pitching methods for serving to the low-income nations cope with debt disaster, China has been displaying reluctance in addressing the difficulty.
Based on estimates, over 70 low-income international locations are reeling underneath a collective debt burden of USD 326 billion, reported PTI.
“The G20 finance ministers and Central Financial institution Governors have acknowledged the great progress in debt therapy of widespread framework international locations and past the widespread framework too,” Modi mentioned.
“We’ve got additionally been drastically delicate to the wants of our valued neighbour, Sri Lanka, throughout their powerful instances,” he mentioned.
“To speed up international debt restructuring efforts, the World Sovereign Debt Roundtable, a joint initiative of the IMF, World Financial institution and the G20 Presidency was launched earlier this 12 months. This can strengthen communication amongst key stakeholders and facilitate efficient debt therapy,” he added.
In July, IMF Chief Kristalina Georgieva pitched for a speedier debt restructuring course of for susceptible international locations.
India is internet hosting the G20 summit on September 9 and 10 in its capability as the present chair of the grouping.
