Debt restructuring talks at G20 meet hurt by differences, low attendance

Reuters ^ | July 17, 2023 | Sarita Chaganti Singh & Shivangi Acharya

[Twotone]

GANDHINAGAR, India, July 17 (Reuters) - Debt restructuring talks made little progress during the third finance meeting of the G20 countries in India as the bloc was unable to overcome key differences and low attendance due to domestic issues adding to the roadblocks.

The finance ministers of the G20 countries gathered in the western Indian state of Gujarat, hoping to push for agreements on debt restructuring for vulnerable countries, global minimum taxation and reforms on multilateral development banks.

"We are not making much headway with the debt restructuring issue," a senior official, who is part of the meeting, told Reuters on Monday.

Last month, Zambia struck a deal to restructure $6.3 billion in debt owed to governments abroad, in what was seen as a breakthrough for indebted nations around the world that have faced lengthy negotiations with their creditors.

But nations did not agree to using Zambia as a model for other restructuring and most remained unwilling to talk about fresh lending to vulnerable countries as many G20 member countries face economic challenges back home, the official said.

Ministers from many countries chose to skip the meeting, which added to the slow progress on the issue, a second official said, adding that 13 finance ministers attended the event. The United States has sent the biggest delegation, led by Treasury Secretary Janet Yellen, to the meeting.

[Tell It Right]

When is deadbeat China going to resume payments on the $1.5 trillion it owes American bondholders for railroad bonds they haven’t paid a penny on in many decades?

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