Prime Minister Modi on Debt Crisis Ahead of G20 Summit: “Great Concern for the World”

The world’s debt issue is a major worry, according to Prime Minister Narendra Modi, as his country works to forge an agreement at the next G20 Summit to create a workable framework to help low-income, debt-ridden nations.

According to PM Modi in an exclusive interview with PTI last week, India’s G20 presidency has focused on tackling the global difficulties brought on by debt vulnerabilities, particularly for the countries of the Global South.

“The debt crisis is indeed a matter of great concern for the world, especially developing countries,” the prime minister said. Government choices in this area are being closely watched by citizens from many nations. There are also some notable outcomes.

“First, countries that are going through the debt crisis or have already gone through it, have begun to give greater importance to financial discipline,” he said, adding that “Second, others who have seen some countries facing tough times due to the debt crisis are conscious of avoiding the same missteps.”

India has constantly emphasized the need for a framework on debt restructuring during its G20 leadership to assist nations who are becoming more and more in need of financial assistance.

Even while a growing number of G20 members are advocating for aiding the low-income countries in dealing with the crisis, China, often regarded as the biggest sovereign creditor in the world, has been reluctant to certain ideas on debt restructuring.

Over 70 low-income nations are reportedly struggling under a 326 billion USD debt load as a whole.

The G20 finance ministers and central bank governors recognized, according to the prime minister, “the good progress in the treatment of debt for common framework countries and beyond the common framework too.”

During Sri Lanka’s difficult times, “we have also been very sensitive to the needs of our valued neighbor,” Modi remarked.

“The Global Sovereign Debt Roundtable, a joint initiative of the IMF, World Bank, and the G20 Presidency, was created earlier this year to speed up global debt restructuring efforts. This will improve coordination among important parties and speed up effective debt relief, he said.

PM Modi anticipated that increased awareness of the issue among people in many nations would prevent frequent recurrence of such circumstances.

IMF Director Kristalina Georgieva advocated for a quicker debt restructuring procedure for vulnerable nations in July.

In its position as the G20’s current chair, India will host the summit on September 9 and 10.

The G20 member nations account for over two-thirds of the world’s population, over 75% of global commerce, and nearly 85% of the world’s GDP.

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom, United States, and the European Union (EU) are included in the group.