Need to address growing debt distress across the globe: Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman on Wednesday underlined that in order to address the mounting debt crisis around the world, it is necessary to supplement current global initiatives, especially those of the G20.

Sitharaman made the remarks during the Global Sovereign Debt Roundtable meeting alongside managing director of International Monetary Fund (IMF) Kristalina Georgieva on Tuesday on the sidelines of the SpringMeetings 2023, in Washington.

World Bank President David Malpass was also present while Sitharaman discussed the global debt crisis.

Taking to Twitter, the Finance Ministry wrote, "Union Finance Minister Smt. @nsitharaman participated in the Global Sovereign Debt Roundtable #GSDR meeting along with Ms@KGeorgieva, MD, IMF @IMFNews, and @DavidMalpassWBG President @WorldBank on the sidelines of the #SpringMeetings 2023, in Washington DC, today."

"As a priority for the #G20India Presidency, FM Smt. @nsitharaman said that there is a need to augment present global efforts, including those of the #G20 to address growing debt distress across the globe," the ministry tweeted further.

During the discussion, Sitharaman also emphasised the need for debt transparency, information exchange, and clarity regarding the treatment of different debt situations on par, predictability of the process, and timeliness of the process.

On Tuesday, Sitaraman also engaged in a bilateral meeting with her US counterpart. Yellen lauded India's leadership on the issue of reform of MDBs.

Yellen also added that the US seeks G20's help in achieving reforms. "The G20 can bring strong political momentum to bear to make sure that the multilateral development banks accelerate their work on 21st-century global challenges as part of their effort to end extreme poverty and expand shared prosperity," the top US official stated.

At the MDB Roundtable Yellen further said, "In the coming weeks, we will elect new leadership at the World Bank that can carry this work forward. I believe that Ajay Banga - U.S. nominee for President of the World Bank - is the right leader to take the baton from President Malpass and accelerate our work to evolve this institution."

Union Finance Minister Nirmala Sitharaman on Sunday (local time) reached Washington to attend the 2023 Spring Meetings of the World Bank Group and International Monetary Fund and other G20 meetings.

She was received by Ambassador Taranjit Singh Sandhu. Sitharaman is on a week-long visit to the US.