G-20 FMCBG Meeting discuss key risks facing global economy

Speed Post News Network

New Delhi : The final G-20 Finance Ministers and Central Bank Governors (FMCBG) Meeting under the 2018 Argentine Presidency and the final BRICS Deputies Meeting under the 2018 South African Chairmanship were held on October 11 & 12, 2018, in Bali, Indonesia, on the sidelines of the IMF/Fund Bank Annual Meetings.

The deliberations in the G-20 FMCBG meeting centered on key risks facing the global economy, enhancing a resilient international financial architecture, financing infrastructure development, progress on compact with Africa as well as streamlining of the Global Partnership for Financial Inclusion (GPFI) process.

Secretary, Department of Economic Affairs (DEA), Ministry of Finance, Government of India, Subhash Chandra Garg, in his interventions indicated that the risks related to trade tension, financial vulnerabilities and oil prices have materialised and are having major impact on the Emerging Market Economies. Secretary (EA) emphasised on the need for G-20 nations to take co-ordinated action to ensure that the negative spill over effects of global risks on Emerging Market Economies (EMDEs) are minimised. He also appreciated the progress of work under the Argentine Presidency on developing infrastructure as an asset class.

Garg indicated the importance of developing global standards and protocols for attracting private funds to the infrastructure space and hoped that the infrastructure agenda of G-20 can contribute in this direction. Secretary (EA) also highlighted the efforts undertaken by India to attract private players in infra financing space such as creating Real Estate Investment Trust Fund, Infrastructure Debt Fund as well as undertaking efforts for monetising brownfield assets.

On Compact with Africa, Secretary (EA) indicated the importance that Government of India (GoI) has placed on undertaking investments in Africa and highlighted the USD10 billion soft loan facility announced for Africa by the Prime Minister of India Narendra Modi. He further highlighted the investment facilitating schemes that the GoI has in place to encourage private players to invest in Africa and elsewhere such as National Export Insurance Fund, Concessional Financing Facility etc, according to a PIB release.

BRICS Finance Deputies : The meeting focused on reviewing the progress achieved by the BRICS Forum in 2018 as well as deliberating on the way forward under the upcoming 2019 BRICS Chairmanship of Brazil. On the Finance Ministry track, the main issues that came up for discussion were the membership expansion of New Development Bank (NDB), the staggering of schedule of payment of paid-in capital of NDB, the work of BRICS PPP Task Force and examining the possibility of developing a consensus on BRICS Rating Agency.

Secretary (EA), in his interventions, indicated India’s unequivocal support for NDB’s membership expansion. Further, he called upon the BRICS Deputies to endorse the membership expansion plan of NDB following which the NDB Board along with the Management can continue with their work on finalising the processes for membership expansion.