India has said the IMF, World Bank and other international organisations must develop and articulate a clear strategy for enhancing public debt transparency to mitigate the rising debt vulnerabilities of low income countries.
In an apparent move to address the issue of debt trap being faced by low-income developing countries (LIDCs), to which China's "predatory economics" is playing a significant role, top officials of India, the US and Britain used various platforms here during the annual Spring Meeting of the IMF and the World bank.
Economic Affairs Secretary, Subhash Garg, who is leading the Indian delegation in the absence of Union Finance Minister Arun Jaitley, raised the issue yesterday at the G-20 meeting of finance ministers. The finance ministers of the US, France, Germany and Britain also highlighted the issue in their address to the IMF.
Expressing concern over the rising public debt vulnerabilities in LIDCs, Garg, in his address to G-20 stressed that increasing debt burden in LIDCs is, "clearly, a massive hindrance" in addressing the Sustainable Development Goals.
LIDCs face challenges centered on equitable growth, resilience, finance and partnerships, and leveraging external public and private finance, he said.
To mitigate the growing debt concerns of LIDCs, he said the IMF and the World Bank and other international organisations must "develop and articulate a clear strategy for enhancing public debt transparency on both the debtor and creditor side.
He also emphasised on the need for strengthening bilateral and regional financing agreements.
US Treasury Secretary Steven Mnuchin
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