Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Developing countries' debt troubles in focus at G20 talks, says Germany's Lindner

Published 02/20/2023, 09:20 AM
Updated 02/20/2023, 09:25 AM
© Reuters. FILE PHOTO: German Finance Minister Christian Lindner speaks in Stuttgart, Germany, January 6, 2023. REUTERS/Andreas Gebert/File Photo

BERLIN (Reuters) - The outlook for the global economy and the situation of highly indebted countries will be the main topics of discussion at the Group of 20 (G20) meetings taking place this week in India, German Finance Minister Christian Lindner said on Monday.

"China in particular plays an important role here," Lindner told Reuters in an interview. China is by far the largest creditor for many highly indebted countries in Africa and Asia, and has been repeatedly pressed to make concessions.

G20 finance ministers and central bank chiefs will meet from Feb. 22 to Feb. 25 to discuss growing debt troubles among developing countries triggered by the pandemic and the war in Ukraine.

Highly indebted developing countries must retain access to international financial markets so that they can continue to import energy and food, Lindner said. 

India has drafted a proposal for G20 countries to help debtor nations by asking big lenders including China to take a large haircut on loans.

India supports a push by the International Monetary Fund (IMF), the World Bank and the United States for the so-called Common Framework (CF) - a G20 initiative launched in 2020 to help poor countries delay debt repayments - to be expanded to include middle-income countries.

Lindner argued that the framework should be tested with poorer nations before it is expanded to middle-income countries. "We can't take the third step without taking the second," he said.

However, Lindner added that he sees a lot of potential in the CF, which is why all stakeholders must now be brought to the table to jointly decide which instrument to choose.

© Reuters. FILE PHOTO: German Finance Minister Christian Lindner speaks in Stuttgart, Germany, January 6, 2023. REUTERS/Andreas Gebert/File Photo

No country can avoid responsibility, he said, without explicitly mentioning China.

Just days before the first anniversary of Russia's full-scale invasion of Ukraine, Lindner praised the unity among Western nations in supporting Ukraine, both financially and militarily. "This unity has surprised the Kremlin in particular. And we need to maintain that clarity," he said.

Latest comments

If Scholz's coalition remains in power for very long, GERMANY will be a developing country.
lol, developing countries? What about the US debt? There's nothing to bail out the size of the US government.
I would be more optimistic if US had a functioning political system along the lines of American values and the US Constitution. Instead, there no end in sight to a leftist establishment destroying liberty and capitalistic fiscal growth policies.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.