Need to address growing debt distress across the globe: FM Sitharaman in US

Union Finance Minister Nirmala Sitharaman said on Wednesday that in order to address the world’s mounting debt crisis, current global initiatives, particularly those of the G20, must be supplemented.

On the sidelines of the Spring Meetings 2023 in Washington, Sitharaman made the remarks alongside International Monetary Fund (IMF) managing director Kristalina Georgieva at the Global Sovereign Debt Roundtable. While Sitharaman discussed the global debt crisis, World Bank President David Malpass was also present.

Taking to Twitter, the Finance Ministry wrote, “Union Finance Minister Smt. @nsitharaman participated in the Global Sovereign Debt Roundtable #GSDR meeting along with Ms@KGeorgieva, MD, IMF @IMFNews, and @DavidMalpassWBG President @WorldBank on the sidelines of the #SpringMeetings 2023, in Washington DC, today.”

“As a priority for the #G20India Presidency, FM Smt. @nsitharaman said that there is a need to augment present global efforts, including those of the #G20 to address growing debt distress across the globe,” the ministry tweeted further.

During the discussion, Sitharaman also emphasised the importance of debt transparency, information exchange, and clarity regarding the treatment of various debt situations on an equal footing, predictability of the process, and timeliness of the process.

Sitaraman also had a bilateral meeting with her US counterpart on Tuesday. Yellen praised India’s leadership on the issue of MDB reform.

Yellen also added that the US seeks G20’s help in achieving reforms. “The G20 can bring strong political momentum to bear to make sure that the multilateral development banks accelerate their work on 21st-century global challenges as part of their effort to end extreme poverty and expand shared prosperity,” the top US official stated.

At the MDB Roundtable Yellen further said, “In the coming weeks, we will elect new leadership at the World Bank that can carry this work forward. I believe that Ajay Banga – U.S. nominee for President of the World Bank – is the right leader to take the baton from President Malpass and accelerate our work to evolve this institution.”