As a part of the Finance Track for the G20 (Group of Twenty) Leaders Summit 2020, the 4th G20 Finance Ministers and Central Bank Governors (FMCBG) meeting was held virtually on October 14, 2020. It was organized under the Saudi Arabian Presidency where Indian side was represented by Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman. The meeting was co-chaired by Mohammed Al-Jadaan, Saudi Arabia’s Minister of Finance, and Ahmed Al-Kholifey, governor of the Saudi Arabian Monetary Authority.
- The objective of the meet was to discuss the current global economic outlook and G20’s response to the COVID-19 pandemic, along with other G20 Finance Track priorities for the year 2020.
- The officials also discussed updates to the G20 Action Plan agreed in April, 2020 which supports the global economy during the COVID-19 pandemic.
Key Outcome: Extension of DSSI by 6 Months till June 2021
During this meeting, the G20 Finance Ministers and Central Bank Governors agreed to extend the Debt Service Suspension Initiative (DSSI) by 6 months i.e. till June 2021 to ease liquidity pressures. It was initially in force till December 2020.
- This means payments covered are not forgiven but delayed, with a repayment period of three years and a one-year grace period. This re-scheduling is known as Net Present Value (NPV) neutral.
- To receive DSSI relief, countries are required to apply for an arrangement with the International Monetary Fund (IMF) which could be either a regular programme or a shorter-term emergency facility.
Recent Related News:
i.On September 5, 2020, Saudi Arabia hosted the virtual G20 Education Ministers Meeting from Riyadh (Capital of Saudi Arabia) to discuss and share experiences of member countries in the three identified areas viz. Education Continuity in Times of Crises, Early Childhood Education and Internationalization in Education. The meeting was chaired by Saudi Arabia’s Education Minister Dr. Hamad Al-Asheikh where India was represented by Union Minister Ramesh Pokhriyal Nishank, Ministry of Education.
ii.On September 10, 2020 Santosh Kumar Gangwar, Minister of State (Independent Charge- I/C) of Labour and Employment attended the G-20 Labour and Employment Ministers meeting . The virtual meeting was held to discuss recent developments of the economic and labour market globally.
About G-20 or Group of Twenty:
Composition– 19 countries and the European Union (EU)
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 United States (US).
2020 Presidency– Saudi Arabia
2020 theme– Realizing Opportunities of the 21st Century For All
Chairman– Saudi Arabian King Salman bin Abdulaziz Al Saud (2020)