3rd G20 FMCBG meet outcome document focuses on debt vulnerabilities, crypto risks

Gandhinagar (Gujarat) [India], July 18 : The two-day third G20 Finance Ministers and Central Bank Governors (FMCBG) meeting under India’s G20 Presidency concluded in Gujarat’s Gandhinagar on Tuesday.
Over 500 delegates, including Finance Ministers and Central Bank Governors from G20 member countries, invitee countries, and Heads of various International Organizations (IOs) participated in the Gandhinagar meeting.
The Third G20 FMCBG meeting concluded with a G20 Chair Summary and Outcome Document comprising 26 paragraphs and 2 Annexes.
The meeting was jointly chaired by Union Finance Minister Nirmala Sitharaman and Reserve Bank of India Governor Reserve Bank of India.
The meeting was organized in five thematic sessions covering Global Economy and Global Health, Sustainable Finance and Infrastructure, International Financial Architecture, International Taxation, and Financial Sector and Financial Inclusion.
Members discussed the global economic outlook and risks, including the macroeconomic implications of food and energy insecurity as well as climate change.
G20 Members have also deliberated on how to strengthen multilateral coordination to effectively address the deteriorating debt situation and facilitate coordinated debt treatment for debt-distressed countries.
“Managing global debt vulnerabilities is a significant priority area for 2023, reflecting the Indian Presidency’s endeavour to voice the concerns of the Global South,” the outcome document of the meeting read.
The Indian Presidency has brought the Digital Public Infrastructure (DPI) agenda into the G20 discussions.
“Members acknowledged the transformative role of DPI in rapidly advancing financial inclusion and productivity gains. The Ministers and Governors lauded India’s pioneering efforts in leveraging DPIs to accelerate financial inclusion to the last mile,” it added.
India has developed some of the finest digital public goods infrastructure which could change lives the world over. India has taken the path of building the public digital infrastructure for serving citizens and UPI, and Jan Dhan, Aadhar and CoWin are some examples.
Among others, the Indian Presidency has prioritised the need to consider the macro-financial implications of crypto assets along with financial stability concerns. The Presidency has also focused on bringing the specific concerns of the Global South onto the crypto assets’ agenda.
“As a result, the IMF had, in February, presented a paper on the macro-financial implications of the 2nd G20 FMCBG. The Financial Stability Board (FSB) has also included sections on EMDE concerns in its forthcoming reports and deliberations. In continuation of this process, in the July meeting, the G20 members welcomed the high-level recommendations of the FSB on crypto-asset activities and global stablecoin arrangements.”
While the work of preparation of the synthesis paper is underway, the Indian Presidency has submitted a “Presidency Note” to the G20 membership laying down important inputs for a Roadmap on crypto assets.
Further, G20 members welcomed the recommendations on the mechanisms to support the timely and adequate mobilisation of resources for climate finance, prepared by the Sustainable Finance Working Group.
The G20 FMCBGs will meet next in October 2023 in Marrakesh on the sidelines of IMF/WBG Annual Meetings.