Finance Minister urges global collaboration to revamp debt structure for developing nations

In a call to action, Finance Minister Nirmala Sitharaman emphasized the necessity of unified worldwide initiatives, spearheaded by affluent nations, aimed at assisting economically burdened countries in reducing their debt load. These efforts come at a crucial juncture, as multilateralism grapples with its most formidable challenges to date.

During a virtual G20 session hosted by India's finance ministry and the Reserve Bank, Sitharaman underlined the profound trials faced by multilateralism in recent years, marking an unparalleled period of uncertainty. The upcoming G20 summit in New Delhi adds further urgency to address these concerns.

Sitharaman asserted that New Delhi has steadfastly ensured that geopolitical disparities do not eclipse the fundamental objective of international cooperation, which lies at the heart of the G20's mission and summit. The Indian presidency of the G20 has notably prioritized the management of global debt vulnerabilities, a pressing issue for numerous nations today.

Emphasizing the need for extensive collaboration within the international community, Sitharaman called for robust and coordinated efforts to restructure debt, particularly for low-income and vulnerable middle-income countries contending with debt-related strains and susceptibilities. She highlighted the challenges faced by multilateral lenders in devising effective solutions in this complex landscape.

The finance minister stressed the shared commitment to shaping a more promising future for all, noting that the present G20 agenda centers around paving the way for an improved tomorrow. Throughout India's presidency, efforts have consistently focused on finding common ground, especially concerning economic matters and addressing the pervasive issue of debt overhang that affects numerous middle-income countries.

Another focal point of India's presidency has been addressing the multifaceted challenges confronting multilateral lending institutions. These agencies are increasingly confronted with calls from both borrowers and lending nations to expand their operational scope beyond their primary developmental mission. To address these evolving demands, the G20 has established an expert group tasked with formulating enduring solutions.