More Stories

Informist, Saturday, Aug 17, 2024

 

--Sitharaman: Inadequate access to development finance hinders growth 

--CONTEXT: Finance Minister Sitharaman speaks at Global South Summit 

--Sitharaman:Global South disproportionately hit by global uncertainty 

--Sitharaman: Seeking ideas for safeguards to curb future debt crises 

--Sitharaman:Aim Global South's larger role in development governance 

 

NEW DELHI – Inadequate access to development finance hinders developing economies from achieving their development goals, Finance Minister Nirmala Sithraman said today.   

 

"The SDG (Sustainable Development Goal) financing gap is estimated at $4 trln annually for developing economies. The Global South is disproportionately affected by global uncertainty. I invite your ideas and suggestions on how to ensure a people-centric approach to securing global finance," Sitharaman said, while speaking at the third Voice of Global South Summit 2024. 

 

The finance minister further said that in order to accelerate progress on sustainable development goals, there is an urgent need to address the $4-trln financing gap. The United Nations Conference on Trade and Development's review at the midpoint of the 2030 agenda shows that the annual sustainable development goal investment gap in developing countries is now about $4 trln.

 

Further, the finance minister said that tight global financial conditions and pro-cyclical sovereign ratings have restricted access of developing economies to market finance, which has made them resort to riskier sources of financing, exposing them to currency, interest rate and refinancing risks.

 

Sitharaman also said the financing requests made by developing economies to multilateral development banks should be met with speed and agility, adding that this will require reforms at the operational level as well as identification of new sources of finance. "Fresh capital infusion should remain an active option for consideration by MDB (multilateral development banks') boards, along with balance sheet optimisation measures and financial innovations," she said. 

 

The finance minister said that it is important that dedicated concessional windows are made available by multilateral development banks for middle-income countries to address climate-related challenges. Also, she highlighted the need for multilateral development banks to engage with credit rating agencies and explore ways to better incentivise the flow of private capital for development financing.

 

Flagging that elevated debt distress has severely constrained resources available for financing development needs, particularly in low-income countries, Sitharaman invited views on ways to strengthen the efficacy of existing mechanisms for debt relief and liquidity support in low- and middle-income countries. She also sought ideas for safeguards that are needed to be put in place to prevent future debt crises. 

 

Saying that India is committed to ensure that the Global South takes a larger role in shaping global development governance, Sitharaman sought ideas on ways to further enhance South-South cooperation to scale up financing from all sources.  End

 

US$1 = 83.94 rupees

 

Reported by Pratiksha

Edited by Tanima Banerjee

 

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2024. All rights reserved.