PM Modi stated his concern about the global debt crisis

On Sunday, Prime Minister Narendra Modi stated that the debt problem is a major concern, particularly for emerging countries in the Global South.

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In an interview with PTI, he noted that India is aiming to generate consensus in order to develop a tangible framework to assist debt-ridden low-income economies.

The debt problem is a major source of concern for the entire world, particularly emerging countries. Citizens from several countries are closely monitoring government moves in this regard. There have also been some notable outcomes, according to Modi.

First, countries that are experiencing or have had a debt crisis have begun to prioritise financial discipline, according to Modi. Second, people who have seen some countries suffer as a result of the debt crisis are cautious of repeating the same mistakes.

G20 Summit focus on resolving global debt issues

Last week, Prime Minister Modi stated that India's G20 leadership has placed a high priority on resolving the global issues posed by debt vulnerabilities.

The Global Sovereign Debt Roundtable, a collaborative initiative of the IMF, World Bank, and the G20 Presidency, was created earlier this year to speed up global debt restructuring efforts. This will improve communication between key stakeholders and allow for more effective debt management, he says.

However, China, the world's biggest sovereign creditor, has been hesitant to accept certain suggestions. Both Asian superpowers have been at odds in the Himalayas since May 2020.

The G20 finance ministers and central bank governors acknowledged significant progress in reaching an agreement on a concrete framework.

According to estimates, nearly 70 low-income countries have been hit with a $326 billion debt burden.

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