 "Finance Minister Nirmala Sitharaman")
The Global Sovereign Debt Roundtable (GSDR) has agreed on urgently improving information sharing, including on macroeconomic projections and sustainability assessments, at an early stage of debt restructuring processes.
Co-chaired by the International Monetary Fund Managing Director Kristalina Georgieva, World Bank Group President David Malpass and Union Finance Minister Nirmala Sitharaman, the GSDR on Wednesday discussed debt sustainability, and debt restructuring challenges and ways to address them.
As a priority for India's G20 Presidency, she said there is a need to augment present global efforts, including those of the G20, to address growing debt distress across the globe.
Sitharaman stressed on debt transparency and information-sharing as well as clarity on the comparability of treatment, predictability and timeliness of the debt restructuring process, including those for steps involved in the process and ways to assess and enforce.
Discussions focused on the actions that can be taken now to accelerate debt restructuring processes and make them more efficient, including under the G20 Common Framework, according to a statement issued by the roundtable,.
"We agreed on the importance to urgently improve information sharing including on macroeconomic projections and debt sustainability assessments at an early stage of the process. The IMF and World Bank will rapidly issue staff guidance on information sharing at each stage of the restructuring process," it said.
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"The meeting discussed the role of Multilateral Development Banks (MDBs) in these processes through the provision of net positive flows of concessional finance. The International Development Association's (IDA) provision of positive net flows and the ex-ante implicit debt relief through increased concessionality and grants to countries facing higher risks of debt distress was welcomed," the statement said.
To clarify key concepts to support predictability and fairness of debt restructuring processes, a workshop will be organised in the coming weeks on how to assess and enforce comparability of treatment, it said.
"Moreover, further work will be undertaken on principles regarding cut-off dates, formal debt service suspension at the beginning of the process, treatment of arrears, and perimeter of debt to be restructured, including with regard to domestic debt," the statement said.
This work will also help in clarifying potential timetables to accelerate debt restructurings, it said.
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