The leaders representing the G20 nations came together on Saturday and reached a consensus to promptly and efficiently address debt-related vulnerabilities encountered by developing countries, which include but are not limited to Zambia, Ghana, and Sri Lanka.
Specifically, debt vulnerability-related issues for Zambia, Ghana, and Ethiopia are being dealt with under the umbrella of the common framework, while Sri Lanka's situation falls outside the scope of this framework.
The G20 Leaders' Declaration, released during the summit in New Delhi, underscored the global financial circumstances' growing tightness, which could exacerbate debt vulnerabilities, persistent inflation concerns, and geopolitical-economic tensions. Given this, the G20 leaders are acutely aware of the prevailing downside risks and are steadfast in their commitment to promoting resilient growth by urgently and effectively addressing the debt vulnerabilities faced by developing countries.
Moreover, the leaders have emphasized the significance of tackling these debt vulnerabilities in low and middle-income countries through a comprehensive, systematic approach that ensures effectiveness.
The G20 has called for ongoing discussions regarding policy-related matters linked to the implementation of the Common Framework, aiming to provide appropriate recommendations.
The Declaration extended a warm welcome to the recent agreement reached between the Zambian government and the official creditor committee regarding debt treatment and expressed anticipation for a swift resolution. Similarly, the formation of an official creditor committee for Ghana was also welcomed, with a strong desire for a speedy agreement on debt treatment. The Declaration urged for the quick resolution of the debt treatment for Ethiopia.
In addition to these common framework countries, the G20 conveyed a positive attitude towards all endeavors geared toward the timely resolution of Sri Lanka's debt situation. This included recognition of the establishment of an official creditor committee and an earnest desire for a swift resolution.
Chad is currently the sole country that has undergone debt restructuring.
Furthermore, the G20 acknowledged and appreciated the Global Sovereign Debt Roundtable (GSDR) participants' efforts to strengthen communication and foster shared understanding among key stakeholders, both within and outside the common framework, to facilitate effective debt treatments.
The GSDR initially created to enhance communication and understanding among these stakeholders, will now become a permanent aspect of the G20. Its co-chairs will consist of the World Bank, the International Monetary Fund (IMF), and the host country.
The G20 also commended the collaborative efforts of all stakeholders, including private creditors, in their continuous work to improve debt transparency.
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