Finance Minister Nirmala Sitharaman stated that global debt vulnerabilities are on the rise and posed threats of systemic global debt crisis, and ignoring the rising debt vulnerabilities of various nations can trigger a global recession.
She said, “If left unaddressed, these mounting debt vulnerabilities can trigger a global recession and push millions under extreme poverty.” She also said that strengthening multilateral development banks is key to addressing the global challenges of the 21st century.
The finance minister also warned of the continued risks the global economy faces from a growth slowdown, rising inflation, the possible resurgence of the pandemic, and geo-political conflicts. In such circumstances, she called on the ‘Global South’ to show “strong solidarity”.
Speaking at the two-day virtual Voice of Global South Summit, she said, “We must explore mechanisms so that the support provided by these institutions is responsive to country-specific needs, sustainable, as well as scalable.” She further added that as the pandemic had exposed vulnerabilities “at all levels”, India’s G-20 presidency is an opportunity as well as a responsibility to encourage collective solutions and rebuild trust in multilateralism.
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