Minister of Finance Mohammed Bin Abdullah Al-Jadaan has participated in the Global Sovereign Debt Roundtable, which was held in Bengaluru, India, to discuss the issue of international sovereign debts as part of the first meeting of finance ministers and central bank governors of the G20, presided over by India.
During the meeting, Al-Jadaan explained that the joint action plan is considered the sole and comprehensive framework for new creditors and the ‘‘Paris Club” conventional creditors relying on restructuring debts, which has proved efficiency in the initiative to resolve the Chad Republic’s debts.
The minister commended the efforts of the World Bank and the International Monetary Fund (IMF) in the field of capacity building, calling for more intensified efforts in light of the risks posed by the increasing debts of several countries.
He also stressed the importance of involving multi-sides banks and regional financial institutions in collective efforts to address sovereign debts, citing their pivotal role in mitigating the debt risks.
Al-Jadaan also underlined the need to institutionalize the joint framework and look into ways to enhance the role of multi-sides development banks in dealing with debt risks for needy countries, highlighting the role of the private sector in this regard.
India’s Prime Minister Narendra Modi had earlier stated policymakers of the G20 leading economies should focus on helping the world’s most vulnerable people.
“You represent the leadership of global finance and economy at a time when the world is facing serious economic difficulties,” Modi said on Friday in a video address to the finance ministers, central bank governors and other leaders attending the two-day meeting.
“It is up to you, the custodians of the leading economies and market systems ... to bring back stability, confidence and growth to the global economy,” he said.
The meetings in Bengaluru are due to touch on a wide range of issues including digital currencies and payments, reform of institutions like the World Bank, climate change and financial inclusion.
At the G20 meeting, Modi added his voice to calls for the reform of global lenders such as the World Bank. “Trust in international financial institutions has eroded. This is partly because they have been slow to reform themselves,” he said.
The remarks echoed calls by others for the World Bank to boost lending and widen its remit beyond tackling poverty, although this has raised concerns that it could lose its top-notch credit rating.
World Bank chief David Malpass earlier this month said he was stepping down a year early. Nominated by former US President Donald Trump
, Malpass came under fire last year after he refused multiple times to say if he believed man-made emissions contributed to global warming. On Thursday, Washington nominated Indian-American former Mastercard CEO Ajay Banga as his successor.