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The South African
20-07-2025
- Business
- The South African
G20 members commit to addressing debt vulnerabilities
Members of the G20 have pledged to address the mounting debt pressures in low and middle-income economies amid global financial turbulence. Image: SAgovnews Home » G20 members commit to addressing debt vulnerabilities Members of the G20 have pledged to address the mounting debt pressures in low and middle-income economies amid global financial turbulence. Image: SAgovnews Members of the G20 have pledged to address the mounting debt pressures in low and middle-income economies amid the global financial is according to Deputy Finance Minister Dr David Masondo who addressed a media briefing following the third G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting held in KwaZulu-Natal this and emerging economies – particularly those in Africa – are grappling with high and rising debt vulnerabilities, shrinking fiscal flexibility and high borrowing costs.'[Members]… reaffirmed their commitment to further strengthen the implementation of the G20 Common Framework. To give effect to this, the G20 FMCBG endorsed the G20 Note on Lessons Learned from the Initial Common Framework Cases and the G20 Note on Steps of a Debt Restructuring under the Common Framework. 'These documents have been published on the G20 website. In addition, fact sheets on the Common Framework country cases for Chad, Zambia and Ghana have also been published on the G20 and Paris Club websites to improve information sharing,' he said. In further discussions, the members also acknowledged the G20 Note on Special drawing rights [SDRs] which, the Deputy Minister said, 'highlights the achievement of exceeding $100 billion in voluntary channelling of SDRs or equivalent contributions for countries in need.'The pledges to this currently stand at some $113.8 billion coming from 35 countries. 'Members also underscored the need for enhancing the representation and voice of developing countries in decision-making in MDBs [Multilateral Development Banks]and other international economic and financial institutions.'Members recognised the relative resilience of capital flows in Emerging Market and Developing Economies [EMDEs] despite heightened global policy uncertainty – underscored by strong macroeconomic fundamentals and sound policy frameworks. 'They also highlighted the growing influence of non-bank financial institutions [NBFIs] and stressed the importance of gaining a deeper understanding of their impact on these flows. Members further emphasised the significance of structural reforms in fostering long-term sustainable capital flows to EMDEs,' said the Deputy Minister. Regarding energy transitions, Masondo said during the meeting, Ministers and central bank Governors considered key recommendations for 'enhancing collaboration among Vertical Climate and Environment Funds, Multilateral Development Banks, National Development Banks and the private sector'.'Members reaffirmed the urgency of scaling up financing for adaptation and just transitions and reflected on key recommendations emerging from a comprehensive analysis undertaken by multiple knowledge partners. These included guidance on integrating adaptation into voluntary transition planning, addressing insurance protection gaps, scaling financing mechanisms, and strengthening enabling environment.'[They] also received an update on the work of the Climate Data Steering Committee, which has developed a set of principles for the development of a Common Carbon Credit Data Model aimed at promoting interoperability and improving transparency of carbon markets. 'They noted that the draft data model is currently undergoing a public consultation with both the private and public sectors,' the Deputy Minister said. The Third Meeting of the G20 Finance Ministers and Central Bank Governors (FMCBG) took place on 17 and 18 July 2025 in Durban. The National Treasury and the South African Reserve Bank are jointly responsible for overseeing the work of the G20 Finance Track under the co-chairship of Finance Minister Enoch Godongwana and Reserve Bank Governor Lesetja Kganyago. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
India Gazette
01-07-2025
- Business
- India Gazette
India's tax reforms, digital push have increased revenue, cut compliance costs: FM Sitharaman
New Delhi [India], July 1 (ANI): Union Finance and Corporate Minister Nirmala Sitharaman on Tuesday said that India's tax reforms and digital transformation in tax administration have increased revenue and reduced compliance costs. Speaking at the Third Plenary Meeting during the #FFD4 in Seville of Spain, the Finance Minister said, 'We support international cooperation to modernise tax systems and curb illicit financial flows. India's comprehensive tax reforms and digital transformation in tax administration have increased revenue and reduced compliance costs.' 'We believe that optimal regulation fosters innovation and stability. The Indian financial system promotes inclusivity through easier credit and lower compliance costs, especially for MSMEs. We have developed a dynamic ecosystem for start-ups and PPPs in infrastructure,' she added. Finance Minister added that India supports reforms to the international financial architecture to enhance inclusivity and equity, including Multilateral Development Banks (MDBs) reforms and fairer credit rating systems. She added that MDB lending must be aligned with long-term development goals and backed by robust monitoring frameworks to ensure that funds are used as intended. Sitharaman in her address added that the country has consistently placed people at the centre of its development strategy. 'Through targeted policy interventions, we have lifted 250 million people out of multidimensional poverty, and empowered communities through inclusive Digital Public Infrastructure (DPI),' she added. However, for robust global growth, national efforts must be complemented by an enabling international environment, the Union Finance Minister asserted. Going further, she said, 'We remain committed to South-South and Triangular Cooperation. We support the call for a reversal in the decline of ODA, and urge developed countries to enhance climate finance that is predictable, accessible, and concessional, particularly for adaptation in vulnerable countries.' 'In the spirit of India's civilizational ethos - 'Vasudhaiva Kutumbakam' or 'The World is one family' - we must unite in our efforts to drive meaningful change that benefits all,' FM stated. 'We are meeting here in Seville, a decade after the adoption of the Addis Ababa Action Agenda, acknowledging the progress made by nations in navigating complex global landscapes, and finding ways to address current challenges that continue to stand in the way of financing global development goals. With many SDG targets off track and a financing gap exceeding USD 4 trillion annually for developing countries, the need for urgent and transformative action is clear,' Finance Minister further added. (ANI)
Mint
01-07-2025
- Business
- Mint
António Guterres: The world needs a rescue plan for sustainable development
António Guterres The Fourth International Conference on Financing for Development in Sevilla could help restore faith in global cooperation to achieve our common sustainability goals. The meeting isn't about charity. It's about justice and a future in which countries can thrive, build, trade and prosper together. Sevilla can spark new momentum to restore a measure of faith in international cooperation and deliver on sustainable development for people and the planet. Gift this article This month, leaders will gather in Sevilla, Spain, on a rescue mission: to help fix how the world invests in sustainable development. The stakes could not be higher. A decade after the adoption of the Sustainable Development Goals (SDGs) and many global commitments to finance them, two-thirds of the targets are lagging. And the world is falling short by over $4 trillion annually in the resources developing countries need to deliver on these promises by 2030. This month, leaders will gather in Sevilla, Spain, on a rescue mission: to help fix how the world invests in sustainable development. The stakes could not be higher. A decade after the adoption of the Sustainable Development Goals (SDGs) and many global commitments to finance them, two-thirds of the targets are lagging. And the world is falling short by over $4 trillion annually in the resources developing countries need to deliver on these promises by 2030. Meanwhile, the global economy is slowing, trade tensions are rising, aid budgets are being slashed while military spending soars, and international cooperation is under unprecedented strain. The global development crisis is not abstract. It is measured in families going to bed hungry, children going unvaccinated, girls being forced to drop out of school and entire communities deprived of basic services. That begins at the Fourth International Conference on Financing for Development in Sevilla, where an ambitious, globally supported plan to invest in the SDGs must be adopted. That plan should include three essential elements. First, Sevilla must help accelerate the flow of resources to the countries that need it most. Fast. Countries must be in the driver's seat, mobilizing domestic resources by strengthening revenue collection and addressing tax evasion, money laundering and illicit financial flows through international cooperation. This would provide much-needed resources to prioritize spending on areas with the greatest impact such as education, healthcare, jobs, social protection, food security and renewable energy. At the same time, national development banks and regional and Multilateral Development Banks need to come together to finance major investments. To support this, the lending capacity of these banks needs to triple, so that developing countries can better access capital on affordable terms with longer timelines. This increased access should include the re-channelling of unconditional reserve assets—or Special Drawing Rights—to developing countries, preferably through Multilateral Development Banks to multiply their impact. Private investment is also essential. Resources can be unlocked by making it easier for private finance to support bankable development projects and by promoting solutions that mitigate currency risks and combine public and private finance more effectively. Throughout, donors must keep their development promises. Also Read: Another IMF loan for Argentina? Its fallout could be ugly Second, we must fix the global debt system. It is unfair and broken. The current borrowing system is unsustainable, and developing countries have little confidence in it. It's easy to see why. Debt service is a steamroller crushing development gains, to the tune of more than $1.4 trillion a year. Many governments are forced to spend more on debt payments than on essentials like health and education combined. The Fourth International Conference on Financing for Development in Sevilla must result in concrete steps to reduce borrowing costs, facilitate timely debt restructuring for countries burdened by unsustainable debt and prevent debt crises from unfolding in the first place. In advance of the conference, a number of countries put forward proposals to ease the debt burden on developing countries. This includes making it easier to pause debt service in times of emergency; establishing a single debt registry to strengthen transparency; and improving how the International Monetary Fund, World Bank and credit-ratings agencies assess risks in developing countries. Also Read: Can the IMF solve the poor world's debt crisis? Finally, Sevilla must raise the voice and influence of developing countries in the international financial system so that it better serves their needs. International financial institutions must reform their governance structures to enable greater voice and participation of developing countries in the management of the institutions they depend on. The world also needs a fairer global tax system, one shaped by all governments—not just the wealthiest and most powerful. The creation of a 'borrowers club' for countries to coordinate their approaches and learn from one another is another promising step toward addressing current power imbalances. The meeting in Sevilla is not about charity. It's about justice and building a future in which countries can thrive, build, trade and prosper together. In our increasingly interconnected world, a future of haves and have-nots is a recipe for even greater global insecurity that will keep weighing down progress for all. With renewed global commitment and action, Sevilla can spark new momentum to restore a measure of faith in international cooperation and deliver on sustainable development for people and the planet. In Sevilla, leaders must act together to make this rescue mission a success. The author is secretary-general of the United Nations. Topics You May Be Interested In
The Print
01-07-2025
- Business
- The Print
Private capital crucial for sustainable development: FM Sitharaman
In an era of volatile FDI flows and mounting global uncertainty, she said private capital has emerged as an increasingly important source of development finance. Addressing the Leadership Summit of the International Business Forum at Sevilla, Spain, she said that private investment is a catalytic force, unlocking capital, boosting productivity, fostering innovation, and introducing technological rigour — all essential for inclusive, sustainable economic growth, according to an official statement. New Delhi, Jun 30 (PTI) Finance Minister Nirmala Sitharaman on Monday underlined the crucial role of private capital in driving sustainable development, saying it is both an urgent necessity and a significant opportunity. 'In recent years, we have witnessed encouraging growth in private investment, supported by the rise of innovative financial instruments alongside traditional sources. However, private capital mobilization remains significantly below what is required, with low- and middle-income countries receiving a disproportionately small share,' she said. This underscores the urgent need for targeted efforts to overcome investment barriers and better align financial flows with development priorities, she said. 'Mobilizing private capital is not merely a financing strategy — it is a development imperative. With coordinated action, thoughtful regulation, and shared ambition as reflected in Compromiso de Sevilla, we can ensure that private investment becomes a force for inclusive, sustainable, and resilient growth,' she said. Talking about key challenges for emerging economies, she said these include the high cost of capital, a shortage of bankable projects, regulatory and institutional constraints, limited local capacity, and high perceptions of risk – both country-specific and currency-related. Effective mobilization of private capital demands a multi-pronged strategy, combining robust domestic reform with strengthened international cooperation, she said. Pointing out seven strategic areas where transformation is both necessary and achievable, she said, strong domestic financial markets, addressing perceived risks through institutional reforms, creating scale in investment opportunities and scaling up of blended finance. Besides, she said Multilateral Development Banks (MDBs) and Development Finance Institutions (DFIs) must assume a stronger enabling role for mobilization of private capital. Stressing that international credit rating methodologies must evolve to better reflect the structural strengths and long-term resilience of EMDEs, she said, current sovereign ratings often understate key fundamentals. Reforming rating methodologies would not only enhance fairness but also reduce financing costs and unlock far greater volumes of private investment, she added. Finally, she said, unlocking capital at the grassroots level requires support for MSMEs. 'These engines of inclusive growth need access to credit, technology, and capacity-building, along with simplified compliance frameworks. India's initiatives, ranging from credit guarantees and stress-period financing to E-Commerce Export Hubs, have improved MSME creditworthiness and global value chain integration,' she said. Sitharaman on Monday embarked on a three-nation official visit. She is leading an Indian delegation to Spain, Portugal and Brazil to attend a host of events, including the BRICS Finance Ministers and Central Bank Governors Meeting (FMCBG). PTI DP MR This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Scoop
30-06-2025
- Business
- Scoop
It's Time To Finance Our Future And ‘Change Course', Guterres Tells World Leaders In Sevilla
30 June 2025 António Guterres issued his clarion call noting that sustainable development powered by international cooperation, is now facing 'massive headwinds.' Addressing the opening session of the 4th Financing for Development Conference (FFD4) in baking hot Sevilla, Spain – basking in record high June temperatures – the Secretary-General noted multilateralism itself is also feeling the heat, while trust between nations and institutions fray. The world is on fire, shaken by inequalities, climate chaos and raging conflicts: ' Financing is the engine of development and right now, this engine is sputtering,' he told the conference, attended by close to 60 world leaders, over 150 nations and around 15,000 delegates. 'As we meet, the 2030 Agenda for Sustainable Development – our global promise to transform our world for a better, fairer future – is in danger.' Some two-thirds of the ambitious Sustainable Development Goals (SDGs) targets agreed in 2015 are significantly off track – hence the staggering $4 trillion investment needed to turn it around. 'We are here in Sevilla to change course. To repair and rev up the engine of development to accelerate investment at the scale and speed required,' said Mr. Guterres. He described the outcome known as the Sevilla Commitment adopted on Monday – without the United States which pulled out of the process earlier this month – as a 'global promise' to low-income nations to lift them up the development ladder. The UN chief outlined three key action areas: First, get resources flowing fast at home to spur sustainable growth, and for richer countries to honour their pledge under the accord to double aid to poorer countries to boost development. This includes tripling the lending capacity of Multilateral Development Banks and innovative solutions to unlock private cash. Second, fix the 'unsustainable, unfair and unaffordable' global debt system. Right now, poorer countries are spending around $1.4 trillion just servicing their vast debts in the form of interest payments. Among the innovations, a new borrowers' forum will ensure fairer debt resolution and action. Third, reform the global financial architecture, with major shareholders playing their part, so that it empowers every country. 'We need a fairer global tax system shaped by all, not just a few.' The current crisis of affordability and stalled development is 'a crisis of people,' he continued, which leaves families hungry, children unvaccinated, and girls left out of education. 'This conference is not about charity. It's about restoring justice and to facilitate the ability of all people to live in dignity,' said Mr. Guterres. ' This conference is not about money – it's about investments in the future we wish to build together.' A tangible and actionable' roadmap King Felipe of Spain spoke just ahead of the official opening, telling delegates the multicultural city of Sevilla welcomes the world 'with open arms'. He said a new roadmap would emerge that is based on what is 'concrete and tangible and actionable'. The conference must be a success, because cooperation is one of our fundamental pillars of the multilateral world and 'the ultimate embodiment of the values that sustain it – especially at this particular point in history where many certainties are melting away and many fears and uncertainties are taking shape.' 'Our time is now' Spain's Prime Minister Pedro Sánchez told delegates 'our time is now and our place is here.' Millions of lives will depend on the choices made in Sevilla and going forward. We must choose 'ambition over paralysis, solidarity over indifference and courage over convenience,' he continued, adding that the eyes of world are on this hall, to see what we are ready to do together and in the face of this historic challenge we must prove our worth.' Sevilla was 'the New York of the 16th century' in diplomatic terms he told delegates – and a cradle of globalism – we must all do that legacy justice today. 'Sevilla is not an end point' Secretary-General of the conference, Li Junhua – who's in charge of the UN's Department of Economic and Social Affairs (DESA) – said the week in Sevilla is key moment to mobilise the resources necessary to build a just, inclusive and sustainable future. The UN effort to finance development has been anchored in multilateralism and solidarity – but today, the whole framework is under 'profound stress.' He said never has sustainable development been so tested but the pact made in Sevilla puts people back at the centre. ' Sevilla is not an end point, it is a launch pad for a new era of implementation, accountability and solidarity.' UNDESA is ready to support all nations to translate the commitment into international action, he underscored. President of the UN General Assembly Philémon Yang told delegates above all, ' we need leadership to guide the world forward into a brighter more prosperous future for everyone, everywhere.' He said the Sevilla framework will renew global partnership for the decade ahead and provide a focus on a debt burden which is crippling the developing world. President of the UN Economic and Social Council Bob Rae said trust between countries had to be strengthened, because its absence 'creates chaos.' 'Most of all I want to congratulate states for bringing forward the ambition, deepening engagement between financial institutions.' The week represents a real commitment to action, he said. Ajay Banga, President of the World Bank Group, told delegates ending poverty remains his key mission and the surge in population underway in developing countries requires resources ' at an unprecedented scale and pace.' He said everyone knew that governments, philanthropies and institutions are unable to meet every projection or promise – which is why the private sector is essential to the Sevilla Agreement so that capital can flow. Mr. Banga added that the bank's reforms of recent years are about being a better partner to the private sector and government clients. Improving response time, boosting capital and systems of growth are key – but much more is needed to deliver for the next generation. Exempt least-developed from punishing tariffs: WTO Ngozi Okonjo-Iweala, Director-General of World Trade Organization said the conference was gathering at a time of unprecedented difficulty. After decades of positive contributions, the global trading system has now been 'severely disrupted' leaving exports so hampered by unilateral tariff measures and policy uncertainty that the WTO has sharply downgraded growth forecasts. Further tariff barriers on 9 July – the deadline set by the US administration – will only make the contraction in global trade worse. She reminded that the WTO has argued for the least developed nations and Africa overall to be exempted from the tariffs, ' so we can better integrate them into the world trading system, not further exclude them.' She said the Sevilla Agreement rightly recognises international trade as an engine of development. 'We therefore need to bolster stability and predictability in global trade,' through action at many levels that can grow national resources through exports, she told delegates. IMF calls for broader tax base Nigel Clarke, Deputy Managing Director of the International Monetary Fund (IMF), called for broadening the tax base, building strong financial management systems, coordinating support and addressing debt more sustainably. 'Many countries continue to struggle with high interest costs,' he said, calling on the international community to improve debt restructuring processes. Through its capacity development, the Fund is equipping members to chart their own paths and is also providing financial support when they need it most, he added.
