Treasury Secretary Janet L. Yellen called on international creditors on Sunday to accelerate efforts to provide debt relief to developing countries facing default, saying that bolstering ailing public finances would benefit the global economy. claimed.
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 agreement, which took more than a year to negotiate, should be a blueprint that can be used to help other countries such as Ghana and Sri Lanka accelerate debt relief and restore growth.
“If these countries develop and contribute to the global economy, we all benefit,” Yellen said.
Treasury secretaries said more than half of low-income countries were in or near debt crisis, double the number in 2015. These countries face a vicious cycle as high public debt levels make it difficult to attract public and private investment.
Last month, the 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 will work.
Her visit to India came less than a week after returning from Beijing, where she met with senior Chinese officials on how to stabilize US-China relations.
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.”
