On April 7, 2021, Union Minister for Finance & Corporate Affairs Nirmala Sitharaman virtually participated in the 2nd G20 Finance Ministers & Central Bank Governors (FMCBG) meeting 2021 held under the Italian Presidency.
- The participants discussed policy responses to global challenges to restore strong, sustainable, balanced and inclusive growth.
- The G20 Finance Ministers & Central Bank Governors discussed updates of the G20 Action plan in response to COVID-19.
- Issues like supporting the financing needs of vulnerable economies, progress on International Taxation agenda, promoting greener transitions & pandemic related financial regulation issues were discussed.
- Nirmala Sitharaman stated that India has covered over 87 Million citizens in its vaccination drive & supplied over 64 Million doses to 84 countries, including 10 Million doses as grant.
- The members agreed on an update of the G20 Action Plan to reflect changes in the economic and health outlook. It is an important policy tool to guide the global response through the COVID-19 Crisis.
- Nirmala Sitharaman emphasized the need for progress on commitments made under the Paris Agreement on climate finance and technology transfer.
Extension of Debt Service Suspension Initiative
Nirmala Sitharaman supported the extension of Debt Service Suspension Initiative (DSSI) by 6 months till December 2021. It will boost the support to the most vulnerable economies which have been affected by COVID-19.
- In April, 2020, The World Bank and the International Monetary Fund (IMF) asked G20 Countries to establish the DSSI.
- Objective – To help countries concentrate their resources on fighting the pandemic and safeguarding the lives and livelihoods of millions of the most vulnerable people.
- It took effect on May 1, 2020 and since then the initiative has delivered about USD 5 Billion in relief to more than 40 eligible countries.
- The G20 is made up of 19 countries and the European Union.
- The 19 countries are Argentina, Australia, Brazil, Canada, China, Germany, France, India, Indonesia, Italy, Japan, Mexico, the Russian Federation, Saudi Arabia, South Africa, South Korea, Turkey, the UK, and the US.
Recent Related News:
i.October 15, 2020, As part of the Finance Track for the G20 Leaders Summit 2020, the 4th G20 FMCBG meeting was held virtually on October 14, 2020.
Established Year – 1999
2021 Presidency – Italy
Chairman – Mario Draghi (Prime Minister of Italy)