The IMF and UNDP support debt restructuring for developing and underdeveloped countries.
BENGALURU: The International Monetary Fund (IMF) and the United Nations Development Programme (UNDP) urged for addressing poor nations' debt concerns on Wednesday, ahead of the first meeting of G20 finance ministers and central bank governors.
IMF chief Kristalina Georgieva highlighted rising inflation and its impact on the poor and vulnerable, while urging for monetary tightening to continue, but she also cautioned about the spillover effects on developing nations from a stronger dollar and capital flows.
She appeared upbeat about the prospects for developing and emerging economies, which are expected to contribute 80% of global growth this year, with India contributing 15%. "Aside from its role as a global development engine, India is ideally placed to bring countries together. This leadership is vital in a world facing various challenges and growing geopolitical tensions, and it is eloquently expressed in India's G20 presidency theme: One Planet, One Family, One Future "She stated.
Advocating for assistance to the vulnerable, she advocated specific measures aimed at the poor, as well as fiscal discipline to address debt sustainability, a serious issue for various countries. "Although financial circumstances have improved since the G20's previous meeting, increasing borrowing costs have exacerbated the vulnerability of economies with substantial foreign debt. Over 15% of low-income nations are in debt trouble, with an additional 45% at high danger. Almost 25% of emerging economies are at high risk and face 'default-like' borrowing spreads "Georgieva explained.
