Risks to global economy, debt vulnerabilities to figure at G20 ministerial meet starting Friday

Bengaluru, Feb 23 (PTI) Global debt vulnerabilities, risks to the world economy from ongoing war in Europe and fears of resurgence of pandemic as well as IMF and World Bank reforms will be discussed during the first major G20 meeting under India’s Presidency starting on Friday.

The issues concerning global framework for regulation of crypto currencies that has already been deliberated upon by finance and central bank deputies of G20 countries on Thursday may also figure during the ministerial meeting.

Ahead of the meeting, Finance Minister Nirmala Sitharaman has held a series of bilateral meetings with her counterparts from the US, Japan, Canada and other countries. During the meetings, various issues, including regulation of crypto currencies, strengthening of multilateral development banks, and debt vulnerabilities of developing countries emanating from the coronavirus pandemic and prolonged Russia-Ukraine war, were discussed.

The agenda of the two-day G20 ministerial meeting also includes global economy, international financial architecture, sustainable finance and infrastructure, international taxation, financial sector and financial inclusion, SME financing, and financing sustainable ‘cities of tomorrow’.

The first major meeting under the G20 India Presidency will be chaired by Finance Minister Nirmala Sitharaman and co-chaired by Reserve Bank Governor Shaktikanta Das. A communique, reflecting the views of the G20 nations, will be issued at the end of the meeting on Saturday.

The meeting will see the participation of Finance Ministers and Central Bank Governors of the G20 members, invitee members and heads of international organisations. In total, there will be a delegation of 72 members attending the meeting.

India’s Presidency of the G20, which is a grouping developed and developing nations, has come at a time when the global economy is reeling under the impact of year-long Russia-Ukraine war. The war began even before the world could fully recover from the outbreak of the pandemic.

In the changed world order and post Covid world, there is a need to strengthen multilateral development banks like the World Bank and IMF to meet the newer challenges, an official said, adding that the discussion would help in bringing changes in the framework for fostering inclusive development.

The discussions in the G20 FMCBG (Finance Ministers & Central Bank Governors) meeting are intended to provide a clear mandate for the various work streams of the G20 Finance Track in 2023.

The ministerial meeting is being preceded by a meeting of the G20 Finance and Central Bank Deputies, which is being co-chaired by Economic Affairs Secretary Ajay Seth and RBI Deputy Governor Michael D Patra.

As part of the scheduled bilateral meetings ahead of the major G20 meeting, Sitharaman on Thursday met US Treasury Secretary Janet Yellen, Japanese Finance Minister Shunichi Suzuki, besides finance ministers of other G20 countries.

A special event titled ‘Walk the Talk: Policy in Action’ is also being organised, during which the ministers and governors will visit the Indian Institute of Science (IISc) to engage with tech-innovators and entrepreneurs who are working on affordable and scalable solutions to some of the challenges being faced by G20 member countries.

To welcome ministers, governors, deputies and delegates, the government organised cultural programmes showcasing India’s rich cultural odyssey across Karnataka a land renowned for its deep rooted cultural and artistic heritage with diverse form of arts and crafts.