India’s G20 presidency comes at a time when its South Asian neighbours Sri Lanka, Bangladesh and Pakistan are searching for pressing IMF funds as a result of an financial slowdown attributable to the COVID-19 pandemic and the Russia-Ukraine battle.
China, the world’s largest bilateral creditor, urged G20 nations on Friday to conduct a good, goal and in-depth evaluation of the causes of worldwide debt points as clamour grows for lenders to take a big haircut, or settle for losses, on loans.
“On debt restructuring, while there are still some disagreements, we now have the global sovereign debt roundtable with consideration of all public and private creditors,” IMF Managing Director Kristalina Georgieva advised reporters after the roundtable she co-chaired with Indian Finance Minister Nirmala Sitharaman.
“We just finished a session in which it was clear that there is a commitment to bridge differences for the benefit of countries.”
Apart from restructuring debt, regulating cryptocurrencies is one other precedence space for India, which Georgieva agreed with.
Discover the tales of your curiosity
“We have to differentiate between central bank digital currencies that are backed by the state and stable coins, and crypto assets that are privately issued,” Georgieva mentioned.”There has to be very strong push for regulation… if regulation fails, if you’re slow to do it, then we should not take off the table banning those assets, because they may create financial stability risk.”
Source: economictimes.indiatimes.com