A two-day assembly of the G20 Worldwide Monetary Structure Working Group concluded right here on Tuesday with members discussing points pertaining to strengthening multilateral growth banks and the right way to tackle challenges related to debt.
Round 100 delegates from the G20 international locations, invitee international locations and worldwide organisations participated within the assembly, Anu P Mathai, adviser, the Ministry of Finance, mentioned whereas addressing the media right here.
The discussions throughout the two-day assembly had been collectively steered by the ministry of finance and the Reserve Financial institution of India together with France and Korea who’re the co-chairs of the Worldwide Monetary Structure Working Group.
Matahi mentioned the assembly was carried out over two days and the intention was to hunt views of the G20 member international locations and the invitee international locations on the agenda of this group underneath the Indian presidency.
“The topics that had been mentioned over the past two days had been the right way to strengthen multilateral growth banks and the right way to tackle challenges related to this the G20 widespread framework for debt therapies, which is a earlier achievement of G20 for serving to the very poor international locations with the debt.
“The main target of this group in 2023 is to help a world motion for enhancing financing for growth whereas on the similar time, strengthening worldwide monetary establishments to help weak international locations,” she said.
There will be more meetings of this group, she further said.
To a question on India’s views on global debt, Parveen Kumar, Director, Ministry of Finance, said, “The first and foremost point which India raised is that we need more international and global cooperation to ensure economic stability so that everybody enjoys the fruits of strong and sustainable growth. Now, what are the impediments to economic stability is a matter of analysis”.
Kumar mentioned that India invited many worldwide organisations just like the IMF, the World Financial institution and 7 to eight regional growth banks.
“Some individuals (international locations) are affected by capital outflows and a number of the international locations whose insurance policies have an effect on capital outflows. There may be all kinds of spectrum accessible across the desk.
“The entire thought is to converge into some type of options and agreements the place international locations agree that… these are the issues which all of us agree and we are able to all act on this and that the general international monetary stability is maintained. That’s the core function of this group,” he said.
To a question about the meeting, Mathai said it was the first of many meetings and the G20 is primarily a forum for discussing the issues that are key challenges of the day.
“Debt has been a problem for some years now and it is increasing. It is too early to have an outcome of this meeting. This issue will be discussed over the next few meetings so that members can decide what is the best way to improve the way the debt situation we have been having,” she added.
Relating to a query on international locations dealing with debt burden, Mathai mentioned there are numerous international locations in Africa like Zambia, Ghana; Central America and Latin America. There are a number of very poor international locations that are dealing with an amazing debt burden. Now, many middle-income international locations like Sri Lanka are additionally dealing with a debt burden.
To a query on narrowing of divergences between the international locations on key points like reform of multilateral growth banks and the worldwide security internet, Mathai mentioned it should take a while.
“These had been all points on the agenda and now all people recognises the significance of those points. One is the necessity to strengthen multilateral growth banks to handle new challenges that come up. Thus far, their focus has been on growth financing. So, the sources of those MDBs should be elevated and so they should be strengthened to have the ability to face challenges. There may be fairly a convergence on the problems,” she said.
She further said the work plan of this working group has been agreed upon by consensus.
Replying to a question, Baldeo Purushartha, joint secretary, the Ministry of Finance, said in the first meeting of the group, the agenda is set.
All of the members have expressed their consensus on the agenda, mentioned Purushartha.
The International Financial Architecture Working Group is dedicated to discussing solutions to vulnerabilities in the international financial system, enhancing financing for development and strengthening the international financial architecture.
India assumed the G20 presidency for one year on December 1, 2022. The G20, or Group of 20, is an intergovernmental forum of the world’s major developed and developing economies.
It comprises Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Indonesia, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the UK, the US and the European Union (EU).
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