FM Nirmala Sitharaman advocates for debt restructuring, resilient infra at World Bank, IMF annual meetings

NEW DELHI: Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, participated in key discussions on sovereign debt restructuring and disaster-resilient infrastructure during the World Bank and International Monetary Fund (IMF) Annual Meetings 2024.

Her engagements highlighted India’s commitment to addressing global financial challenges and fostering sustainable development.

The Ministry of Finance posted on X, “Union Minister for Finance and Corporate Affairs @nsitharaman participated in the Global Sovereign Debt Roundtable #GSDR on the sidelines of the World Bank and IMF #AnnualMeetings2024, in Washington DC, today. In her intervention, FM @nsitharaman congratulated the GSDR co-chairs for helping advance #DebtRestructuring by addressing technical bottlenecks through candid discussions….”

At the Global Sovereign Debt Roundtable (GSDR), Sitharaman emphasized the need for timely, transparent, and predictable debt restructuring processes. She congratulated the GSDR co-chairs for advancing debt restructuring efforts by tackling technical bottlenecks through candid discussions.

Stressing the importance of improving the comparability of treatment among creditors, she advocated for coordinated efforts to ensure low-cost, long-term financing and targeted technical assistance to help vulnerable countries build fiscal resilience.

The Finance Minister cautioned against the use of contingency financing instruments, which can create deferred obligations and exacerbate future debt issues.

She called for deeper dialogue within the GSDR’s informal platform to better understand all stakeholders’ perspectives, address concerns, and provide guidance on the risks and benefits associated with these instruments. Sitharaman reaffirmed India’s commitment to supporting the GSDR’s upcoming initiatives.

In a separate event, Sitharaman chaired the Roundtable on Disaster Resilient Infrastructure, which gathered finance and planning ministers from various countries, along with representatives from international organizations, including the USAID and the US National Security Council.

Ministry of finance posted on X, “Union Minister for Finance and Corporate Affairs @nsitharaman chaired the Roundtable on Disaster Resilient Infrastructure, on the sidelines of the World Bank and IMF #AnnualMeetings2024, in Washington DC, today….”

She underscored Prime Minister Narendra Modi’s vision of transforming infrastructure systems through the Coalition for Disaster Resilient Infrastructure (CDRI) to address today’s natural disasters and adapt to climate change.

Highlighting India’s experience in ensuring resilient economic growth, the Finance Minister noted the country’s investments in both hard infrastructure and institutional capacity. She cited the coordinated evacuation of over 2.4 million people during Cyclone Amphan in 2020 as a significant example of India’s disaster preparedness.

Sitharaman expressed India’s readiness to share best practices with the Global South and partner with Africa and other developing nations to bolster infrastructure resilience.

The minister also highlighted India’s leadership in disaster risk reduction under its G20 Presidency, where a Disaster Risk Reduction Working Group was established to enhance commitment towards disaster and climate-resilient infrastructure and to strengthen financial frameworks for disaster risk management. (ANI)