G20 presidents and prime ministers gather in India for their annual summit to discuss global economic development. Absent from the meetings this year are Russia’s President Vladimir Putin and President Xi Jinping of China.
The World Bank reported that one-third of developing countries will grow more slowly next year than in 2019, before the pandemic crisis. Because the Federal Reserve and other major central banks increased interest rates, developing countries are paying more on their debts.
The group will review the debt situation in developing countries. In June, public and government creditors agreed to reduce debt for the second of four countries to apply to the G20’s Common Framework, a debt reduction process the group set in 2020. Private creditors have not committed to matching debt reductions.
For the last two years the G20 had a focus on increasing resources for multilateral lenders and development banks. India’s G20 Presidency appointed former Secretary of Treasury Larry Summers and former Chairperson of the Fifteenth Finance Commission of India Nand Kishore Singh to chair a group of experts to examine additional needs to strengthen these multilateral lenders.
In August, Africa interfaith religious leaders representing Catholic, Anglican, Presbyterian and other Christian denominations, the All Africa Council of Churches, Muslim and indigenous faiths called for increasing multilateral development bank finance.
The New Delhi summit also reviews the impact of $650 billion in pandemic relief aid through an IMF 2021 emergency currency creation or Special Drawing Rights, says Jubilee USA .
As advanced economies received more than $400 billion in SDRs, the G20 agreed to transfer $100 billion to countries in need. The IMF reports pledges of more than $24 billion SDRs to its Poverty Reduction and Growth Trust, which lends to the poorest countries at zero-interest rates, and over $45 billion to a recently-created vehicle to provide long-term, low-cost pandemic preparedness and climate interventions loans.
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