BEIJING, 26th July, 2023 (WAM) -- At the G20 finance ministers and central bank governors meeting held last week, China proposed strategies aimed at resolving the debt problems of developing countries, with the end goal of enhancing their economic development capacities. This is a crucial approach in helping these countries break free from the harmful cycle of borrowing to repay debts, and is fundamental in achieving independent and sustainable development. Global debt, particularly in low- and middle-income developing nations, was a central topic at the meetings, which also discussed global economy and health, sustainable finance and infrastructure, international financial architecture, taxation, and financial sector inclusion. A consensus emerged on the need to assist low-income countries in managing their increasing debt burdens. According to a report by China Economic Net, prior to the meeting, the United Nations disclosed that global public debt had reached an unprecedented $92 trillion in 2022. Additionally, the number of countries grappling with high levels of indebtedness had surged from 22 in 2011 to 59 in 2022. During the G20 meeting, China proposed innovative solutions, such as enhancing ways of financing infrastructure and expanding sources and scale of funding. China also emphasised the core role of multilateral development banks in reducing poverty and promoting development. These banks should offer developing countries greater flexibility to address short-term crises and achieve sustainable development. As stated by China's finance ministry, "The G20 should objectively analyse the causes of debt problems in vulnerable countries, with development being the fundamental solution to these issues."
Source: Emirates News Agency (WAM)
