‘Debt crisis matter of great concern for world’: PM Modi ahead of G20 summit

A debt restructuring framework should be adopted, he says

Prime Minister Narendra Modi Prime Minister Narendra Modi digitally addresses the G20 Culture Ministers' Meeting, on Saturday, Aug. 26, 2023 | PTI

Ahead of the G20 summit, Prime Minister Narendra Modi said that India looks at building consensus to evolve a framework to help debt-ridden low income economies.

Significant emphasis was placed on addressing the global challenges posed by debt vulnerabilities especially for the Global South, said Modi during an interview to PTI.

Modi emphasised that debt crisis is a matter of great concern for the world.

“The debt crisis is indeed a matter of great concern for the world, especially developing countries. Citizens from different countries are keenly following the decisions being taken by governments in this regard. There are some appreciable results too,” said Modi.

He pointed out that those countries that have gone through debt crisis before gives greater importance to financial discipline. “Others who have seen some countries facing tough times due to the debt crisis are conscious of avoiding the same missteps,” said Modi.

The need for a framework on debt restructuring inorder to help countries facing debt issues was highlighted by India under its G20 presidency.

Though G20 member countries are pitching ways for helping the low-income nations deal with debt crisis, China has been showing reluctance in addressing the issue.

According to estimates, over 70 low-income countries are reeling under a collective debt burden of USD 326 billion, reported PTI.

"The G20 finance ministers and Central Bank Governors have acknowledged the good progress in debt treatment of common framework countries and beyond the common framework too," Modi said.

"We have also been greatly sensitive to the needs of our valued neighbour, Sri Lanka, during their tough times," he said.

"To accelerate global debt restructuring efforts, the Global Sovereign Debt Roundtable, a joint initiative of the IMF, World Bank and the G20 Presidency was launched earlier this year. This will strengthen communication among key stakeholders and facilitate effective debt treatment," he added.

In July, IMF Chief Kristalina Georgieva pitched for a speedier debt restructuring process for vulnerable countries.

India is hosting the G20 summit on September 9 and 10 in its capacity as the current chair of the grouping.

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