NEW DELHI : Debt resolution of poor and middle-income countries, and the impact of climate policies on capital flows dominated the second G20 finance ministers and central bank governors meeting in Washington this week.
NEW DELHI : Debt resolution of poor and middle-income countries, and the impact of climate policies on capital flows dominated the second G20 finance ministers and central bank governors meeting in Washington this week.
Climate change-related decisions are becoming a key part of national and regional policies, which are believed to impact investment decisions of companies. The European Union is implementing a carbon border tax on imports of steel, which have a high carbon footprint, as part of efforts to combat climate change. The UK too may follow suit.
Climate change-related decisions are becoming a key part of national and regional policies, which are believed to impact investment decisions of companies. The European Union is implementing a carbon border tax on imports of steel, which have a high carbon footprint, as part of efforts to combat climate change. The UK too may follow suit.
During the meeting, which concluded on Thursday, members discussed key challenges to the global economic outlook, including the war in Ukraine, food and energy insecurity, climate change and recent risks to financial stability.
During the meeting, which concluded on Thursday, members discussed key challenges to the global economic outlook, including the war in Ukraine, food and energy insecurity, climate change and recent risks to financial stability.
The meeting was held under the Indian G20 presidency on 12-13 April on the sidelines of the 2023 Spring meetings of the International Monetary Fund and World Bank Group.
The meeting was held under the Indian G20 presidency on 12-13 April on the sidelines of the 2023 Spring meetings of the International Monetary Fund and World Bank Group.
The goal of the G20 meeting was to deliberate on the progress made by the various work streams of the G20 finance track on the deliverables that were tasked to them by G20 ministers and governors this February.
The goal of the G20 meeting was to deliberate on the progress made by the various work streams of the G20 finance track on the deliverables that were tasked to them by G20 ministers and governors this February.
On debt, discussions focused on strengthening multilateral coordination to address increasing debt distress in low-income and vulnerable middle-income countries.
On debt, discussions focused on strengthening multilateral coordination to address increasing debt distress in low-income and vulnerable middle-income countries.
Ministers and governors reiterated the need to swiftly complete the ongoing debt treatments under the G20 Common Framework that supports low-income countries having unsustainable debt. The discussions also covered the impact of climate change-related policies on capital flows.During the session on sustainable finance, financial sector, and financial inclusion, the discussions focused on the mobilization of resources for climate change, the role of multilateral financial institutions in catalysing private finance flows for the UN Sustainable Development Goals (SDGs) and the role of the G20 in scaling up and encouraging wider adoption of social impact investment instruments.
Ministers and governors reiterated the need to swiftly complete the ongoing debt treatments under the G20 Common Framework that supports low-income countries having unsustainable debt. The discussions also covered the impact of climate change-related policies on capital flows.During the session on sustainable finance, financial sector, and financial inclusion, the discussions focused on the mobilization of resources for climate change, the role of multilateral financial institutions in catalysing private finance flows for the UN Sustainable Development Goals (SDGs) and the role of the G20 in scaling up and encouraging wider adoption of social impact investment instruments.
“Members discussed the key challenges to the global economic outlook, including the war in Ukraine, food and energy insecurity, climate change, and recent risks to financial stability,” the finance ministry said in a press statement.G20 members agreed that the group could contribute to a common understanding on building a conducive environment for global economic recovery, and ensuring that the most vulnerable countries and sections of the population are adequately protected.
“Members discussed the key challenges to the global economic outlook, including the war in Ukraine, food and energy insecurity, climate change, and recent risks to financial stability,” the finance ministry said in a press statement.G20 members agreed that the group could contribute to a common understanding on building a conducive environment for global economic recovery, and ensuring that the most vulnerable countries and sections of the population are adequately protected.
Finance minister Nirmala Sitharaman told the media that funding of development activities is required for low and middle-income countries.
Finance minister Nirmala Sitharaman told the media that funding of development activities is required for low and middle-income countries.
“There are pockets of underdeveloped areas in middle-income countries, especially in the post-pandemic era, which desperately need funding for development,” Sitharaman’s office said in a tweet. “We’re looking at the World Bank for two core things —extreme poverty alleviation and bringing prosperity post-poverty alleviation. Sustainability and goals related to climate, climate finance and energy transition will now have to be the third pillar,” it added.
“There are pockets of underdeveloped areas in middle-income countries, especially in the post-pandemic era, which desperately need funding for development,” Sitharaman’s office said in a tweet. “We’re looking at the World Bank for two core things —extreme poverty alleviation and bringing prosperity post-poverty alleviation. Sustainability and goals related to climate, climate finance and energy transition will now have to be the third pillar,” it added.
Sitharaman also attended a high-level meeting on Sri Lankan debt and expressed India’s commitment to support Colombo in dealing with its current economic crisis.She emphasized that collaboration among creditors is important to ensure transparency and equality in treatment of all creditors in debt restructuring discussions.
Sitharaman also attended a high-level meeting on Sri Lankan debt and expressed India’s commitment to support Colombo in dealing with its current economic crisis.She emphasized that collaboration among creditors is important to ensure transparency and equality in treatment of all creditors in debt restructuring discussions.
Japan’s finance minister Suzuki Shunichi, Sri Lanka’s state finance minister Shehan Semasinghe and Emmanuel Moulin, director general of the treasury, France, were present in the meeting. Sri Lanka President Ranil Wickremesinghe participated virtually.
Japan’s finance minister Suzuki Shunichi, Sri Lanka’s state finance minister Shehan Semasinghe and Emmanuel Moulin, director general of the treasury, France, were present in the meeting. Sri Lanka President Ranil Wickremesinghe participated virtually.
The purpose of the event was to demonstrate multilateral cooperation regarding the debt restructuring process among the creditors, together with Sri Lanka, it said.
The purpose of the event was to demonstrate multilateral cooperation regarding the debt restructuring process among the creditors, together with Sri Lanka, it said.
In the event, the ministers announced the launch of the debt restructuring negotiation process on Sri Lanka under the three co-chairs: India, Japan, and France, to lead coordinated debt restructuring of Sri Lanka, it said.
In the event, the ministers announced the launch of the debt restructuring negotiation process on Sri Lanka under the three co-chairs: India, Japan, and France, to lead coordinated debt restructuring of Sri Lanka, it said.
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