Sitharaman Advocates Global Debt Dialogue for Sustainable Development

Finance Minister Nirmala Sitharaman emphasized the need for enhanced dialogue to address debt obligations, balancing them with vital investments. Speaking at the Global Sovereign Debt Roundtable, she highlighted progress in debt restructuring through the Common Framework, particularly for countries like Ghana and Ethiopia. Sitharaman also chaired discussions on disaster-resilient infrastructure, showcasing India's initiatives and collaboration efforts with the global south under its G20 presidency.

Finance Minister Nirmala Sitharaman on Thursday emphasized the importance of enhancing dialogue to assist countries in managing their debt obligations while still investing in crucial areas. Speaking at the Global Sovereign Debt Roundtable alongside the World Bank and IMF annual meetings, Sitharaman warned against reliance on contingency financing instruments, citing potential future debt challenges.

The Global Sovereign Debt Roundtable provides a platform for debtor and creditor countries to build understanding on debt sustainability and restructuring. Sitharaman noted significant progress in ongoing restructuring efforts, as seen in Ghana and Ethiopia, under the Common Framework and other processes, fostering more predictable debt treatments.

Apart from her focus on debt, Sitharaman also led the Roundtable on Disaster Resilient Infrastructure, advocating for the Coalition for Disaster Resilient Infrastructure created by Prime Minister Narendra Modi to tackle climate challenges. Highlighting India's systemic resilience growth, she pledged India's support to the Global South, including initiatives under India's G20 presidency.

(With inputs from agencies.)