G20 working group to discuss debt distress, global financial architecture reforms in Goa
1 min read 05 Jun 2023, 09:10 PM ISTThe working group looks into issues like capital flows between countries, liquidity matters, debt, any matter related to regional funding arrangements and multilateral development banks, explained the official at a briefing
PremiumNew Delhi: A G20 working group will brainstorm the reforms needed in international financial architecture and the debt distress some low-income countries are facing, at a two-day meet in Goa starting Tuesday, said an official.
The working group looks into issues like capital flows between countries, liquidity matters, debt, any matter related to regional funding arrangements and multilateral development banks, explained the official at a briefing.
Along with the working group meeting, a side event will discuss orderly green transition, requirements of green finance and how developing countries will attract funding for their green projects, said the official.
The outcomes of all working groups will culminate in the meeting of the finance ministers and central bank governors, which takes place four times in a presidency. The third such meeting under India's presidency of G20 will take place in July. "The peak point of the presidency is the leaders' summit which in India will take place in September.," said the official.
The working group on international financial architecture is looking at issues like how multilateral development banks like the World Bank can be strengthened to look at tackling the big challenges of today, the official said. "For example, they need money to deal with pandemics. They need to give money to low-income countries to deal with climate change because the amount of funding required for climate change is beyond the current capacity of the World Bank and other multilateral development banks," said the official, adding that these are major issues.
The meeting will discuss strengthening these institutions and using their resources better. The meeting will also discuss the issue of global debt situation. Many low-income countries are facing debt distress, the official said. World Bank's new president Ajay Banga assumed charge last week.
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