India Drafts Proposal for G20 Countries to Help Nations in Debt

G20 host India is drafting a proposal for member countries to help nations who are badly hit by the economic crisis after the pandemic and Ukraine war.

India has drafted the proposal to the members of G20 that includes China, which is the world's largest sovereign creditor, to take a large haircut on loans.

According to a report in Economic Times, two government sources told Reuters that the finance ministers and central bank chiefs from the group of 20 members are preparing to meet in Bengaluru next week. The meeting will be the first big event of India’s one year of presidency in G20.

The International Monetary Fund on Tuesday said that it would organize a virtual meeting with the World Bank, India, China, Saudi Arabia, the United States and other wealthy nations who are members of G7 democracies on Friday. In the meeting, these countries try to understand the common standards, principles and definitions for how to restructure distressed country debts.

One of the officials said, "India is designing a proposal to try to persuade countries like China to take a big haircut in lending to nations in difficulty.”

China’s Ministry of foreign affairs said, "China takes the debt issue of developing countries seriously and supports relevant financial institutions to put forward solutions.”

"It is our consistent stance that multilateral financial institutions and commercial creditors, which hold the bulk of the debt of developing countries, should participate in the debt relief efforts,” he added.

The G20 summit is being held by India this year. The G20 is the Group of twenty is an intergovernmental organization made up of the European Union and 18 other nations. This nation group is called G20. The G20 aims to address more important global Economic concerns. Ok the G20 Nation it covered almost 85 percent of the world economy which is a lay percentage in the economy, it covered almost 75 percent of the world trade, and almost 66 percent of the world population.

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