The first G20 Finance Ministers and Central Bank Governors (FMCBG) Meet that concluded in Bengaluru Saturday under India’s presidency stopped short of issuing a communique of its resolutions and released a ‘Summary and Outcome Document’ instead, as Russia and China opposed the paragraphs governing Russia’s war on Ukraine.
Russia, backed by China, took a position that the FMCBG meeting was not the right forum for such resolutions as its mandate was to deliberate on economic issues.
There was progress, however, in terms of addressing the debt vulnerabilities of a few nations and measures to manage crypto assets with a proposed regulatory framework.
Responding to a question on why there was a Chair’s Summary instead of a communique, Union Finance Minister Nirmala Sitharaman said that paragraph three and four of the Summary was “exactly what the Bali Leaders Summit had come up with… But, two countries had a reservation. So, with a footnote, certainly a communique can’t go out. And therefore, it had to be a Chair’s Summary and Outcome Document.”
The two contested paragraphs reiterated the stance of member nations about the ongoing war, and deplored “in the strongest terms the aggression by the Russian Federation against Ukraine,” while demanding Russia’s “complete and unconditional withdrawal from the territory of Ukraine.”
“The peaceful resolution of conflicts, efforts to address crises, as well as diplomacy and dialogue, are vital. Today’s era must not be of war,” parts of the paragraphs opposed by the two countries read.
Ajay Seth, secretary, Department of Economic Affairs, said both Russia and China “took a position that the mandate of FMCBG nations was to discuss economic issues.”
Sitharaman said G20 members have agreed to deepen discussions around crypto assets and understand their broader implications. The Summary welcomed the ongoing efforts to “ensure that the crypto-assets ecosystem, including so-called stablecoins, is closely monitored and subject to robust regulation, supervision, and oversight to mitigate potential risks to financial stability.”
The Union finance minister said that the FMCBG arrived at a common position for ‘debt language’. “Vulnerable nations are looking at G20 nations to relieve the debt stress,” Sitharaman said, adding that four countries – Ghana, Sri Lanka, Zambia, and Ethiopia – would benefit from the discussions on resolving debt vulnerabilities.
“Strengthening multilateral coordination by official bilateral and private creditors is needed to address the deteriorating debt situation and facilitate coordinated debt treatment for debt-distressed countries,” the Chair’s Summary read.
Shaktikanta Das, governor, Reserve Bank of India, said the digital payment linkage between India and Singapore attracted a lot of attention at the meeting. This can guide the cross-border transfer of money in the future, he said.
The Summary also touched upon Central Bank Digital Currencies. “We will continue to explore the macro-financial implications of the potential introduction and widespread adoption of Central Bank Digital Currencies (CBDCs), and their effects on cross-border payments, as well as on the international monetary and financial system,” according to the Summary.
The Indian Express
