Global debt overshadows G20 finance chiefs meet

By Al Mayadeen English
Source: Agencies
17 Jul 2023 11:55

Finance ministers and central bank chiefs of the G20 initiated discussions focusing on debt restructuring agreements, reforms in multilateral banks, in addition to financial strategies to combat climate change.

US Treasury Secretary Janet Yellen (L) listens to India's Finance Minister Nirmala Sitharaman during a press conference at a G20 meeting of finance and central bank chiefs. (AFP)

Finance ministers and central bank chiefs from G20 countries convened on Monday to discuss important topics such as debt restructuring, multilateral bank reform, and finance for addressing climate change, with the aim of revitalizing the global economy.

Nirmala Sitharaman, the Indian Finance Minister and summit chair, emphasized the responsibility of steering the global economy toward sustainable and inclusive growth, highlighting that one of the key focuses of the two-day agenda is reaching a consensus on addressing the challenges posed by increasing levels of debt.

Additionally, discussions will revolve around strengthening multilateral development banks and coordinating global efforts to combat climate change, Sitharaman added.

US Treasury Secretary Janet Yellen highlighted the G20's role in making progress on critical issues like climate change and pandemics to bolster the global economy. She also mentioned the ongoing efforts to address debt distress in the world's poorest countries, citing the progress made in debt restructuring in Zambia, which she discussed during her recent visit to Beijing.

It is worth noting that Yellen recently concluded a four-day trip to China, during which she stated that the decoupling of the US and Chinese economies would be "virtually impossible" as it would result in the destabilization of the global markets.

The Treasury Secretary underscored, during a session with representatives of US businesses hosted by the American Chamber of Commerce in Beijing on July 9, that the US has not sought a "wholesale separation of our economies," and explained that "we [US] seek to diversify, not to decouple."

Significantly, the Treasury Secretary also stressed, during the same session, that Washington was "concerned" about the curbs, and that the US was still evaluating the impact of these actions, but they remind us of the importance of building resilient and diversified supply chains."