The Solutions of G20 States for Heavily Indebted Countries
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VIVA – G20 member states agreed to continue handling debt pressures to countries that have difficulty paying heavy debts. The handling efforts will be carried out in several schemes.
It was conveyed by the Minister of Finance, Sri Mulyani Indrawati after holding the fourth meeting of the Minister of Finance and the Governor of the Central Bank (FMCBG) in Washington DC, United States.
"We have consequences in terms of a weak economy and bad debt difficulties, not only for small-income countries but also for middle and high-income countries," Sri Mulyani said in a press conference via YouTube Bank Indonesia, Friday, October 14, 2022.
Meanwhile, in dealing with debt problems, a general framework can be used to overcome debt problems, especially for small and middle-income countries. In this case, it is carried out using international cooperation.
Menteri Keuangan Sri Mulyani di Washington DC.
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Then, the need for a global financial safety net in this case can be through the support of the International Monetary Fund (IMF). It can use the Special Drawing Rights (SDR) policy option for poor and developing countries in reducing the debt burden.
"Then, also ask the Multilateral Development Banks (MDB) to use their balance sheets and capital adequacy framework. So, they can continue or strengthen increase support for many countries in a larger situation, especially in financing assets," Sri Mulyani said.
Sri Mulyani also explained that the MDB balance is not only used for global interests but can also be used for climate change.
"So, it is an important element related to using a common framework to handle debt-related situations. The second is the support from the IMF, and the third is how to ask the MDB to increase using the existing balance sheet through the current adequacy framework," Sri Mulyani explained.
