On Friday, Finance Minister Nirmala Sitharaman highlighted growing debt vulnerabilities in many developing countries and asked for advice from G20 member countries on “multilateral coordination” to manage the burden. Speaking at the inaugural session of the G20 Finance Ministers and Central Bank Governors (FMCBG) meeting, Sitharaman also sought views on how multilateral development banks, such as the IMF and the World Bank, can be strengthened to address the common global challenges of the 21st century, while maintaining a focus on the Sustainable Development Goals (SDGs) and poverty eradication.

The discussions of the first session of the G20 FMCBG meeting focused on issues relating to the international financial architecture, sustainable finance and infrastructure.

“FM highlighted the increase in #DebtVulnerabilities in many vulnerable countries and sought the views of #G20 members on #MultilateralCoordination stating that managing global debt vulnerabilities would be crucial for the global economy,” said tweeted the Ministry of Finance.

Last December, World Bank President David Malpass said the world’s poorest countries owed $62 billion in annual debt service, up 35% from $46 billion in 2021, triggering a higher risk of default.

Malpass had said that low-income countries were at high risk of debt distress or were already there and that debt crises were also spreading to middle-income countries.

Under the G20 presidency, India has been pushing to find ways to tackle heightened debt vulnerabilities faced by developing countries, mainly due to ongoing geopolitical tensions and the pandemic.

There are fears that if left unchecked, growing debt vulnerabilities in developing countries could trigger a global recession and push millions into extreme poverty. In his speech, Sitharaman also invited G20 countries to provide their perspective on policy initiatives that can help enable financing for the SDGs and ways to mobilize timely and adequate resources for climate finance.

The Minister also spoke about India’s priority of financing tomorrow’s cities and sought to explore the views of 20 developed and developing economies on national policy experiences in financing inclusive, resilient tomorrow’s cities. and durable.