Treasury Secretary Janet L. Yellen on Sunday called on international creditors to accelerate efforts to provide debt relief to developing countries facing default, saying bolstering deteriorating public finances would benefit the global economy. claimed to bring
Speaking in Gandhinagar, India, ahead of a meeting of G20 finance ministers, Yellen referred to recent agreements between international creditors, including China, to help Zambia repay its debts. He said the deal, which took more than a year to negotiate, should serve as a blueprint to help other countries such as Ghana and Sri Lanka. accelerate debt relief and regain growth.
“If these countries develop and contribute to the global economy, we all benefit,” Yellen said.
More than half of low-income countries are in, or close to, debt crises, double the 2015 total, he said. These countries face a vicious cycle as high levels of public debt make it difficult to attract public and private investment.
last month,government Zambia The country welcomed a three-year moratorium on payments of $6.3 billion, mostly to Chinese financiers.The way is now open IMF to release $188 million Contributed to relief funds under a $1.3 billion relief package. The deal has come after a year and a half of tough negotiations that left Zambia’s finances precarious.
Yellen is expected to urge G20 countries to accelerate efforts to enable poor countries to restructure their debts and to provide clearer explanations to borrowers on how the restructuring should work.
Her trip to India will be over within a week. after she returned from beijingwhere she met with Chinese officials on how to stabilize relations between the United States and China.
Beyond the debt crisis, finance ministers are expected to discuss international efforts to modernize the World Bank and other regional development banks.
Finance ministers are expected to continue discussing international aid to Ukraine, a contentious issue within the G20. Russia is also a member of this group, and several countries, including India, have tried to remain neutral in the conflict.
In her remarks on Sunday, Yellen made it clear that the United States and its Western allies would not cut back on aid to Ukraine.
“Our coalition’s support for Ukraine is clear,” Yellen said. “The United States will stand by Ukraine as long as necessary, and I know our allies and partners in our coalition will do so as well.”