Friday, December 8, 2023

The G7 urges cooperation on the debt problems of emerging countries

The finance ministers of the G7 countries agreed on the “urgency” of solving the problems of debt existing in low- and middle-income countries.

Those vulnerabilities “must be addressed from a multilateral coordination that involves all official bilateral creditors taking swift action,” says the joint statement published this Saturday at the end of the three-day meeting of the forum in the city of Niigata, on Japan’s west coast.

The financial authorities of the group of sevenaccompanied in their conversations by representatives of the European Union, India, Indonesia or Brazil, pointed out the importance of private creditors “facilitating debt deals with terms at least as favorable as to guarantee a distribution fair of the load”.

The forum welcomed the voluntary channeling of special drawing rights and the additional contributions promised by Japan and Francewhich seek to provide greater liquidity to the global economic system, and called on more countries to make contributions to bring the fund’s value to US$100 billion.

The G7, which has proposed to increase its alliances outside the group, promised to strengthen the collaboration economic and political dialogue with African countries.

In an unusual move for the forum, the Japanese presidency invited several emerging economies to participate this time, including Comoros, the sitting chair of the African Union.

This rapprochement would be motivated by the group’s desire, among other points, to counteract the growing influence of China in the countries of that region through increased investment.

The G7 Finance representatives also addressed the need to manage the crisis in a coordinated and collaborative way climatic and the impact that the economy has on it.

In this sense, they highlighted the importance of migrating to more sustainable policies that aspire to decarbonization and of helping emerging economies to reduce their dependence on fossil fuels so that the transition is effective.


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