Creating international locations’ debt troubles in focus at G20 talks, says Germany’s Lindner


BERLIN (Reuters) – The outlook for the worldwide economic system and the state of affairs of extremely indebted international locations would be the foremost subjects of dialogue on the Group of 20 (G20) conferences happening this week in India, German Finance Minister Christian Lindner mentioned on Monday.

“China particularly performs an vital function right here,” Lindner informed Reuters in an interview. China is by far the biggest creditor for a lot of extremely indebted international locations in Africa and Asia, and has been repeatedly pressed to make concessions.

G20 finance ministers and central financial institution chiefs will meet from Feb. 22 to Feb. 25 to debate rising debt troubles amongst growing international locations triggered by the pandemic and the conflict in Ukraine.

Extremely indebted growing international locations should retain entry to worldwide monetary markets in order that they will proceed to import vitality and meals, Lindner mentioned. 

India has drafted a proposal for G20 international locations to assist debtor nations by asking massive lenders together with China to take a big haircut on loans.

India helps a push by the Worldwide Financial Fund (IMF), the World Financial institution and america for the so-called Widespread Framework (CF) – a G20 initiative launched in 2020 to assist poor international locations delay debt repayments – to be expanded to incorporate middle-income international locations.

Lindner argued that the framework must be examined with poorer nations earlier than it’s expanded to middle-income international locations. “We won’t take the third step with out taking the second,” he mentioned.

Nevertheless, Lindner added that he sees lots of potential within the CF, which is why all stakeholders should now be delivered to the desk to collectively resolve which instrument to decide on.

No nation can keep away from duty, he mentioned, with out explicitly mentioning China.

Simply days earlier than the primary anniversary of Russia’s full-scale invasion of Ukraine, Lindner praised the unity amongst Western nations in supporting Ukraine, each financially and militarily. “This unity has stunned the Kremlin particularly. And we have to preserve that readability,” he mentioned.

(Reporting by Christian Kraemer, Writing by Maria Martinez, Modifying by Miranda Murray and Friederike Heine)