Union Finance Minister Nirmala Sitharaman, Reserve Bank of India (RBI) Governor Shaktikanta Das and delegates listen to Prime Minister Narendra Modi’s virtual address at the first Finance Ministers and Central Bank Governors (FMCBG) meeting under the G20 India Presidency, in Bengaluru on Friday. , , Photo Credit: ANI
Prime Minister Narendra Modi on Friday flagged the unsustainable debt threat faced by some developing countries as he called on the Group of 20 (G20) nations to focus on the world’s most vulnerable citizens.
In a video message at the start of a two-day meeting of G20 finance ministers and central bank governors, he said trust in international financial institutions has eroded partly because they have been slow to reform themselves.
He referred to rising geopolitical tensions in various parts of the world but made no direct reference to the war in Ukraine.
“The financial viability of many countries is threatened by unsustainable debt levels,” the prime minister said. “Now it is up to you – the custodians of the world’s major economies and monetary systems – to bring stability, confidence and growth back into the global economy. countries to bankruptcy. They are now knocking the doors of global lending institutions for debt restructuring.
Mr Modi acknowledged “it is not an easy task” but urged nations to work collectively to strengthen multilateral banks to face global challenges such as climate change and high debt levels.
The meeting here is the first major event under India’s G20 chairmanship and coincides with the first anniversary of Russia’s invasion of Ukraine that left thousands dead and millions forced from their homes.
“We are also witnessing rising geopolitical tensions in various parts of the world. There are disruptions in global supply chains. Many societies are suffering due to rising prices,” said Mr. Modi.
‘One Earth, One Family, One Future’
Stating that at a time when the world is facing severe economic difficulties, he said that the COVID-19 pandemic has given a once-in-a-century shock to the global economy. He added that many countries, especially developing economies, are still facing its after-effects.
“However, I do hope you draw inspiration from the vibrancy of the Indian economy. Indian consumers and producers are optimistic and confident about the future. We hope you will be able to transmit that same positive spirit to the global economy.” Said.
“Only by forging an inclusive agenda will global economic leadership win back the world’s trust. The theme of our G20 presidency also promotes this inclusive vision ‘One Earth, One Family, One Future’.”
The Prime Minister said that the dominance of technology is increasing in the world of finance. During the pandemic, digital payments enabled contactless and seamless transactions.
“However, some recent innovations in digital finance also pose risks of volatility and abuse,” he added. “I hope you will explore how the power of technology can be harnessed for good, while developing standards to control its potential risks.”
He said that India’s own experience can be a role model. “Over the past few years, we have built a highly secure, highly reliable and highly efficient public digital infrastructure. Our digital payments ecosystem has been developed as an open public good. Have changed form. -live in India,” he said.
The two-day meetings are expected to discuss a range of issues including digital currencies and payments, reform of institutions such as the World Bank, climate change and financial inclusion.
“The combination of devastation caused by the pandemic and high debt has driven countries around India, including Sri Lanka and Pakistan, into bankruptcy”Narendra Modi Prime Minister