Calls Grow for Global Finance Architecture Reform Amid Debt Woes

Some of the world’s largest economies ramped up calls to increase support to troubled emerging countries ahead of a Group of 20 finance chiefs meeting.

“We need to work together to ease the debt overhang that is holding back too many countries,” US Treasury Secretary Janet Yellen said Thursday. Yellen said she would push for all bilateral official creditors, including China, to participate in debt restructuring for developing countries in distress.

Rising debt distress in a slew of emerging economies forms the backdrop at the gathering of world’s most influential economies in India’s southern city of Bengaluru. France and Indonesia also urged reforms to the global financial architecture in a bid to quickly help developing nations facing painful debt restructuring talks after the pandemic ravaged their economies.

“The international financial architecture must be reformed to ensure greater solidarity for developing countries,” Bruno Le Maire, France’s minister for economy and finance, told India’s Economic Times in an interview published Thursday.

While the developed nations encouraged the G-20 to step up efforts to resolve the debt crises, Indonesia’s Finance Minister Sri Mulyani Indrawati said creditor nations must make progress on restructuring.