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KUMARAKOM/DELHI: The UN has proposed additional dollar support of up to $47 billion towards fresh paid-in capital of multilateral development banks (MDBs), including the World Bank and regional development banks, such as ADB, as part of efforts to reform these entities, while allowing for debt recast of stressed countries and injection of liquidity.
The UN secretary general’s SDG (sustanable development goal) package, which was discussed by the Sherpas in the Kerala backwaters, has also said expansion of new financing will not be sustainable unless the debt overhang in countries such as Zambia and Ghana is addressed, given that 25 of them are spending almost 20% of government revenue towards loan servicing.
The agency has said MDBs can leverage the existing capital base to raise more money from markets to meet their funding requirements.
While G20 finance ministers discussed some of the issues, there were two critical gaps. The FMs haven’t yet talked about actions on how to bring private creditors and non-traditional creditors in the debt-restructuring plan for debt-stressed nations.
The recast of MDBs is being looked at by an expert group with Harvard professor Larry Summers and 15th Finance Commission chairman NK Singh as co-convenors.
The UN secretary general’s SDG (sustanable development goal) package, which was discussed by the Sherpas in the Kerala backwaters, has also said expansion of new financing will not be sustainable unless the debt overhang in countries such as Zambia and Ghana is addressed, given that 25 of them are spending almost 20% of government revenue towards loan servicing.
The agency has said MDBs can leverage the existing capital base to raise more money from markets to meet their funding requirements.
While G20 finance ministers discussed some of the issues, there were two critical gaps. The FMs haven’t yet talked about actions on how to bring private creditors and non-traditional creditors in the debt-restructuring plan for debt-stressed nations.
The recast of MDBs is being looked at by an expert group with Harvard professor Larry Summers and 15th Finance Commission chairman NK Singh as co-convenors.
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