[ad_1]
BENGALURU: The International Monetary Fund (IMF) and the UN Development Programme (UNDP) on Wednesday called for tackling the debt problems faced by developing countries, ahead of the first meeting of G20 finance ministers and central bank governors.
IMF chief Kristalina Georgieva flagged high inflation and its impact on the poor and vulnerable, while calling for continuing with monetary tightening, but also suggested the need to be cautious on the spillover effects on developing countries through a stronger dollar and capital flows.
She appeared optimistic about growth prospects of developing countries and emerging economies contributing to 80% of the global growth this year, with India’s contribution pegged at 15%. “But beyond its role as a global growth engine, India is uniquely positioned to bring countries together. In a world facing multiple challenges and rising geopolitical tensions, this leadership is critical – and beautifully captured in the theme of India’s G20 presidency: One Earth, One Family, One Future,” she said.
Advocating support for the vulnerable, she proposed targeted measures focused at the poor, along with fiscal tightening to overcome debt sustainability, a major problem for several countries. “While financial conditions have improved since G20 last met, we have seen how higher borrowing costs exacerbate vulnerability of economies with heavy external debt. About 15% of low-income countries are in debt distress and an additional 45% are at high risk of debt distress. Among emerging economies, about 25% are at high risk and facing ‘default-like’ borrowing spreads,” Georgieva said.
IMF chief Kristalina Georgieva flagged high inflation and its impact on the poor and vulnerable, while calling for continuing with monetary tightening, but also suggested the need to be cautious on the spillover effects on developing countries through a stronger dollar and capital flows.
She appeared optimistic about growth prospects of developing countries and emerging economies contributing to 80% of the global growth this year, with India’s contribution pegged at 15%. “But beyond its role as a global growth engine, India is uniquely positioned to bring countries together. In a world facing multiple challenges and rising geopolitical tensions, this leadership is critical – and beautifully captured in the theme of India’s G20 presidency: One Earth, One Family, One Future,” she said.
Advocating support for the vulnerable, she proposed targeted measures focused at the poor, along with fiscal tightening to overcome debt sustainability, a major problem for several countries. “While financial conditions have improved since G20 last met, we have seen how higher borrowing costs exacerbate vulnerability of economies with heavy external debt. About 15% of low-income countries are in debt distress and an additional 45% are at high risk of debt distress. Among emerging economies, about 25% are at high risk and facing ‘default-like’ borrowing spreads,” Georgieva said.
#Undp #IMF #UNDP #debt #recast #developing #poor #nations
