Nirmala Sitharaman Holds Bilateral Meetings With G20 Ministers; Pitches For Global Framework To Regulate Cryptocurrencies

Finance minister Nirmala Sitharaman on Thursday underlined the need for a global framework to regulate cryptocurrencies besides firming up ways to tackle global debt vulnerabilities and strengthening multilateral development banks. 

She discussed these topics during the bilateral meetings with her counterparts, including from US, Japan and Spain, ahead of the G20 ministerial meeting.

The finance ministers of the G20 countries, which is a grouping of developed and developing nations, are here to participate in the two-day meeting of G20 finance ministers and central bank governors (FMCBG) beginning February 24.

Under the G20 Presidency, India will be pressing for a global framework to regulate the cryptocurrencies and ways to tackle the aggravated debt vulnerabilities facing the developing nations, mainly on account of the continuing geopolitical tensions and the pandemic.

It is feared that if left unaddressed, the mounting debt vulnerabilities of developing nations could trigger global recession and push millions to extreme poverty.

The minister has held separate bilateral meetings with several G20 ministers, including US Treasury Secretary Janet Yellen, Finance Minister of Japan Shunichi Suzuki, and Italian Minister of Economy and Finance Giancarlo Giorgetti ahead of the G-20 FMCBG meeting.

She is scheduled to have more than 10 such meetings, including with the Finance Ministers of Indonesia, Canada, Spain, Argentina and Canada, besides General Manager of the Bank for International Settlements (BIS).

In her meeting with Yellen, the finance minister discussed issues relating to crypto assets, strengthening multilateral development banks and global debt vulnerabilities.

"The two leaders exchanged views on #G20 #FinanceTrack priorities under #G20India Presidency in 2023. The two leaders discussed their perspectives on strengthening #MDB, #GlobalDebt vulnerabilities, #CryptoAssets, and #health, besides the Just Energy Transition Partnership #JETP and possible takeaways for the two sides," the finance ministry tweeted after the meeting.

In a statement, the US Treasury Department said Yellen discussed cooperation on the evolution of multilateral development banks, encouraged strengthened health-finance coordination.

She also thanked India for taking a leadership role on promoting sovereign debt restructuring, while encouraging faster G20 efforts on existing debt restructuring cases.

In a separate tweet on Sitharaman's meeting with her Japanese counterpart, the finance ministry said the ministers exchanged views on priorities under G20 Finance Track 2023.

"Both Ministers looked forward to close cooperation between Japan as #G7 Presidency and India as #G20 Presidency on strengthening of #MDBs, #debt related issues, financing cities of tomorrow and coordinated policy for #CryptoAssets," it said.

On her meeting with the Italian minister, the finance ministry said the Italian finance minister extended his full support for a successful G20 India Presidency in 2023.

"FM said that under the leadership of PM Shri @narendramodi, India hosted the Voice of the #GlobalSouthSummit & India would put forth perspectives of the #GlobalSouth. Mr. Giorgetti indicated that Italy would continue to be a bridge between Global North and the Global South," the ministry tweeted.

Canadian Deputy Prime Minister and Minister of Finance Chrystia Freeland in her meeting with Sitharaman stated that the Pension Funds in Canada are aware of safety and opportunity of investing in India, and will approach the NIIF.

"FM Smt. @nsitharaman acknowledged Canada for its support in the FMCBG Communique drafting, cooperation in #MDB reform and #ClimateFinance," the finance ministry tweeted.

Sitharaman, while addressing the ministerial session at the Global South Summit last month, had said India will take up developmental issues of the Global South at the meetings of the G-20 countries emphasising that there should not be any first world or third world, but only one world having a common future.

India has been raising the issue of reforms of the multilateral lending agencies, especially the International Monetary Fund (IMF) and World Bank, to enable them to address the global challenges facing the world economy in the 21st century.