Speaking at the inaugural session of the meeting of G20 Finance Ministers and Central Bank Governors (FMCBG), Sitharaman also sought views on how multilateral development banks (like the IMF and World Bank) can be strengthened to address shared global challenges of the 21st century, while maintaining a focus on sustainable development goals and poverty eradication.

Terming G20 as a force for “collective good and a forum to listen to voices of Global South”, Sitharaman, in her opening remarks, said discussions will focus on finding more holistic solutions to the most pressing global challenges. “Supporting the countries most in need and reflecting their concerns and aspirations of developing countries will be central to our efforts,” she said.

The discussions of the first session of the G20 FMCBG meeting focused on issues relating to international financial architecture, sustainable finance and infrastructure. The Finance Minister also invited views of the G20 nations on policy initiatives that can be instrumental in enabling financing for sustainable development goals and ways for mobilisation of timely and adequate resources for climate finance. The minister also spoke about India’s priority of financing cities of tomorrow and sought to explore the views of the 20 developed and developing economies on domestic policy experiences with respect to financing inclusive, resilient and sustainable cities of tomorrow.

“FM Smt @nsitharaman sought views of the Ministers and Governors on how #MDBs can be strengthened to address #SharedGlobalChallenges of the 21st century, while maintaining a focus on #SDGs and #PovertyEradication,” Finance Ministry said in a series of tweets.

“FM highlighted the rising #DebtVulnerbilities in many vulnerable countries and sought views of the #G20 members on #MultilateralCoordination stating that managing global debt vulnerabilities would be crucial for the world economy,” another tweet stated.

According to a new policy brief published Wednesday by the United Nations Development Programme (UNDP), 52 low and middle-income developing economies are either in debt distress or at high risk of debt distress, accounting for more than 40 percent of the world’s poorest people. 25 developing economy governments have external debt service payments higher than 20 percent of total revenue – the highest number of countries in more than 20 years, the report said, adding that a 30 percent haircut on their public external debt stock in 2021 could help save up to $148 billion in debt service payments over eight years.

In December 2022, World Bank had said that the world’s poorest countries owe $62 billion in annual debt service, a year-on-year increase of 35%, warning of a rising risk of defaults. India’s neighbours Sri Lanka, Bangladesh and Pakistan have sought a bailout from the IMF over the past year due to a sharp economic slowdown caused by the Covid-19 pandemic and the Russia-Ukraine war.

Debt restructuring along with inflation control and harnessing digital progress were also listed as crucial policy priorities by International Monetary Fund’s Kristalina Georgievaearlier this week. Under the G20 Presidency, India has been pressing for ways to tackle the aggravated debt vulnerabilities facing developing nations mainly on account of the continuing geopolitical tensions and the pandemic.