Debt crisis matter of concern for world: PM Modi
India looks at building consensus at the upcoming G20 summit to evolve a tangible framework to help the debt-ridden low income economies
Debt Restructuring Efforts
• G20 member countries pitching for helping low-income nations deal with the crisis
• India highlighting need for a framework on debt restructuring
• Global Sovereign Debt Roundtable, a joint initiative of IMF, World Bank G20 Presidency launched
New Delhi: Debt crisis is a matter of great concern for the world, especially developing countries, Prime Minister Narendra Modi has said, as India looks at building consensus at the upcoming G20 summit to evolve a tangible framework to help the debt-ridden low income economies. In an exclusive interview late last week, Modi said India’s G20 presidency has placed a significant emphasis on addressing the global challenges posed by debt vulnerabilities, especially for nations in the Global South. “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,” Modi said. “First, countries that are going through debt crisis or have gone through it, have begun to give greater importance to financial discipline,” Modi said.
“Second, others who have seen some countries facing tough times due to the debt crisis are conscious of avoiding the same missteps,” Modi said. Under its G20 presidency, India has been consistently highlighting the need for a framework on debt restructuring to help countries facing mounting debt problems. China, considered to be the world’s largest sovereign creditor, has been showing reluctance to certain proposals on debt restructuring although an increasing number of G20 member countries are pitching for helping the low-income nations deal with the crisis. According to estimates, over 70 low-income countries are reeling under a collective debt burden of $326 billion. “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.