Modi flags high debt, urges G20 to focus on most vulnerable citizens

BENGALURU: Prime Minister Narendra Modi on Friday flagged the threat of unsustainable debt facing some developing nations as he called upon the Group of 20 (G20) nations to focus on the world’s most vulnerable citizens.

Trust in international financial institutions has eroded partly because they have been slow to reform themselves, he said in a video message at the start of the two-day meeting of G20 finance ministers and central bank governors.

He referred to rising geopolitical tensions in different parts of the world but did not make any direct reference to the war in Ukraine.“Financial viability of many countries is threatened by unsustainable debt levels,” the PMsaid.

“It’s now up to you— the custodians of the leading economies and monetary systems of the world to bring back stability, confidence and growth to the global economy.”

A combination of ravage caused by the pandemic and high debt has driven nations around India, including Sri Lanka and Pakistan to bankruptcy. They’re now knocking on the doors of global lending institutions for restructuring loans.

Modi acknowledged “it’s not an easy task” but urged the nations to work collectively to strengthen multilateral banks to meet global challenges like climate change and high debt levels.