Union Finance Minister Nirmala Sitharaman during a roundtable meeting with business leaders and investors in Washington on April 11, 2023. , Photo Credit: PTI
Finance Minister Nirmala Sitharaman has said that the objective of India’s G20 chairmanship is to develop a common framework for all countries to deal with the risks associated with it. cryptocurrency In light of the recent aftershocks seen in the crypto market.
last year’s episode Bankruptcy of FTX, and its dispute with Binance triggered a massive market selloff and reduced liquidity. This event made the world realize the vulnerability of this asset class as they have no underlying value.
“Given so many collapses and setbacks in cryptocurrencies, cryptocurrencies are a very important part of the discussion under the #G20India Presidency. We want to develop a common framework for all countries to deal with this matter.’
He also said that the G20 is trying to bring all countries together to address the debt crisis in middle-income and low-income countries such as Sri Lanka and Ghana.
On strengthening multilateral coordination by official bilateral and private creditors to address the worsening debt situation and facilitate coordinated debt treatment for debt-stressed countries, during the first G20 Finance Ministers and Central Bank Governors (FMCBG) meeting in February It was agreed.
The World Bank and the IMF are also holding a roundtable on global sovereign debt. The initial discussion took place at the G20 FMCBG meeting in Bengaluru, he said, adding India’s G20 presidency would facilitate discussion and exchange of information on the issue and take it forward positively.
“At the G20, India has an opportunity to bring all countries together to address the debt crisis in middle-income and low-income countries. Multilateral institutions are coming up with solutions for debt laden countries in 3 to 5 years time,” Ms. Sitharaman said.
In December last year, World Bank President David Malpass said the world’s poorest countries were owed $62 billion in annual debt service, a 35% increase over the $46 billion in 2021, putting them at high risk of default Is.
Malpass also said that low-income countries are at high risk of debt crisis or are already in it and that the debt crisis is spreading to middle-income countries as well.
Under the chairmanship of the G20, India has been pushing for ways to deal with the severe debt vulnerabilities faced by developing countries mainly due to ongoing geopolitical tensions and the pandemic.
It is feared that if not addressed, the increasing debt vulnerability of developing countries could trigger a global recession and push millions into extreme poverty.
Ms. Sitharaman also said that India is carrying forward the agenda of the earlier G20 Presidency, bringing to the table issues that India considers important and for future G20 Presidency to carry forward the legacy of the G20 India Presidency He is also making way.
Noting that emerging markets have G20 presidency for three consecutive terms from Indonesia in 2022, India in 2023 and Brazil next year, he said, this will bring emerging market views and also the voice of the Global South to the G20 table.
Talking about the business environment in the country, he said that foreign investment keeps coming to India. “I would tell potential investors to come and see what is happening in India, rather than listen to assumptions made by people who have not been on the ground but are writing reports.”
Talking about India’s goals for the next 5 years, the Finance Minister said, “Today, we are reaching saturation in providing basic amenities like house, electricity, transport etc. to the citizens and empowering them. The emphasis is on financial inclusion so that everyone has a bank account and the benefits reach them directly.”