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A meeting of G20 Finance Ministers and Central Bank Governors (FMCBG) under India’s Presidency on Saturday resolved differences over language of debt resolution for low and middle-income countries. It also agreed to set up an expert group for reforming multilateral development banks.
However, it failed to adopt a communique as Russia and China did not agree on paragraph relating with condemning war. Rather, the meeting ended with issuance of G20 Chair’s summary and Outcome Document which gave an insight on what was agreed upon and roadmap for future.
“One of the successes was to have arrived at a common position on the debt language. It is important for us to emphasise because vulnerable countries are looking at G20 to find some solution to relive their debt stress,” Finance Minister Nirmala Sitharaman said in a press conference at the end of meeting.
Debt stress
She said many countries have been waiting for a very long time. “G20 is now standing up to meet the challenges of debt stress. This is a development that reflects at the responsiveness and also taking up the responsibility of giving solutions and the G20 has always shown,” she said. Further, she informed that work is in progress on debt resolution for Sri Lanka, Ethiopia, Zambia and Ghana and they are expected to get the relief soon.
In the Chairman’s summary, it has been said: “We recognize the urgency to address debt vulnerabilities in low and middle-income countries. Strengthening multilateral coordination by official bilateral and private creditors is needed to address the deteriorating debt situation and facilitate coordinated debt treatment for debt-distressed countries. We stand by all the commitments made in the ‘‘Common Framework for Debt Treatments beyond the DSSI’’, including those in second and final paragraphs, as agreed on November 13, 2020, and step up the implementation of the Common Framework in a predictable, timely, orderly and coordinated manner.
One the issue of no communique, Finance Minister said para 3 and 4 of summary statements are exactly from Bali Leaders’ Summit. These were introduced but “China and Russia had a reservation so a communique can’t go out with a footnote,” she said.
Adding to this, Economic Affairs Secretary Ajay Seth said barring these two, remaining 18 countries agreed all countries. “They didn’t agree because the leaders had prepared that and it was fine for the circumstances that prevailed then and therefore now, they didn’t want it,” he said.
Bali declaration
The contentious paragraph number 3, as adapted from Bali Declaration noted that the war in Ukraine further adversely impacted the global economy. Leaders during discussion reiterated their national positions as expressed in other fora, including the UN Security Council and the UN General Assembly, where a resolution deplored in the strongest terms the aggression by the Russian Federation against Ukraine and demanded its complete and unconditional withdrawal from Ukraine.
In paragraph 4 it has been said; “it is essential to uphold international law and the multilateral system that safeguards peace and stability. This includes defending all the Purposes and Principles enshrined in the Charter of the United Nations and adhering to international humanitarian law, including the protection of civilians and infrastructure in armed conflicts. The use or threat of use of nuclear weapons is inadmissible. The peaceful resolution of conflicts, efforts to address crises, as well as diplomacy and dialogue, are vital. Today’s era must not be of war.”
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