G20 Summit: Developing countries suffering from economic crisis will no longer have the problem of debt. In the New Delhi declaration, the leaders of the G-20 countries agreed to take immediate and effective action to deal with the debt problems of developing countries like Zambia, Ghana and Sri Lanka. Debt related issues in the three countries – Zambia and Ghana – will be dealt with under the Common Action Plan, while Sri Lanka has been kept out of it. The manifesto said the balance of risks is tilted to the downside, with significant tightening in global financial conditions. This tightening could worsen credit vulnerabilities, persistent inflation and geo-economic tensions. G20 leaders committed to promoting resilient growth by addressing debt issues in developing countries promptly and effectively.
Official creditor committee will be formed
In the declaration, the leaders re-emphasised the importance of addressing debt vulnerabilities in low- and middle-income countries in an effective, comprehensive and systematic manner. The G-20 called for continued discussion on policy-related issues related to the implementation of the Common Plan of Action to make appropriate recommendations. Beyond the Common Plan of Action, the declaration welcomed all efforts for a timely resolution of Sri Lanka’s debt situation, including the formation of an official creditor committee and early resolution. So far, debt restructuring has taken place only in Chad.
Leverage private capital from financial institutions for maximum development impact
Committing to better, bigger and more effective multilateral development banks (MDBs), G-20 leaders on Saturday called on financial institutions to maximize development impact through innovative financing models and new partnerships in a New Delhi Leaders Summit Declaration. Asked to take advantage of private capital. It also supported the Action Plan to implement the recommendations of the G-20 Independent Review of the MDB Capital Adequacy Framework (CAF) and its MDBs, while safeguarding their long-term financial stability, strong credit ratings and preferred lender status within their own framework. Called for ambitious implementation. We also call for regular reviews of the progress of implementation on a periodic basis, including through dialogue with MDBs, subject matter experts and stakeholders, the G-20 New Delhi declaration said. We commend MDBs for their progress in implementing the CAF recommendations, particularly with respect to the adoption of the definitions of risk appetite and financial innovation.
Need to pursue reforms for larger and more effective MDBs
Committed to pursuing reforms for better, larger and more effective MDBs, the G-20 leaders urged these institutions to make comprehensive efforts to develop their vision, incentive structures, operational approaches and financial capabilities so that they can better operate. to be equipped to address global challenges to maximize developmental impact. The declaration said that there is a need for a large-scale emphasis on scaling up investment to meet development needs and global challenges and in this context, we call on the EMDE in coordination with the IMF and the World Bank and other relevant international institutions. Asks to support efforts to mobilize domestic resources. According to the manifesto, we call on MDBs to leverage private capital through innovative financing models and new partnerships to maximize their development impact. We look to the summit for a new global financing agreement while acknowledging other multilateral efforts.
Welcome call to global community: Mahindra Group CEO
The G20 Declaration is a welcome call to action for the global community to take broad and diverse action in many contexts. Anish Shah, Managing Director and CEO of Mahindra Group said this. He also added that the world faces complex challenges. He said in a statement that the New Delhi Declaration not only reflects India’s energetic leadership, but also reflects the country’s enhanced status on the global stage. He said that by following this manifesto, we can move towards inclusive and sustainable growth with peace and prosperity for all.