As prospects for a meeting-end consensus statement remained in doubt Saturday afternoon in Bengaluru, an eighth draft of a communiqué being discussed among the world’s top finance chiefs showed lingering tensions over language about Russia’s war in Ukraine and debt restructuring.
(Bloomberg) — As prospects for a meeting-end consensus statement remained in doubt Saturday afternoon in Bengaluru, an eighth draft of a communiqué being discussed among the world’s top finance chiefs showed lingering tensions over language about Russia’s war in Ukraine and debt restructuring.
The draft, obtained by Bloomberg News, showed sticking points over war language that would differ from that adopted in Bali, Indonesia, at a Group of 20 leaders’ meeting in November. That gathering ended with the more potent communiqué rather than a watered-down chair’s summary like previous G-20 finance ministers’ meetings earlier last year.
The eighth draft showed the third point of the communiqué, addressing the war in Ukraine, still had its first lines in red — suggesting delegates were still haggling over the language. Bloomberg earlier reported that characterizing the war has been a stumbling block to achieving a consensus statement.
The ninth section of the draft communiqué, addressing debt vulnerabilities in lower- and middle-income countries, also contained several sections in red. These mostly addressed the role of multilateral development banks — a discussion that also has been at an impasse at the G-20 meetings.
The fifth section of the draft — on the macroeconomic outlook — appeared to be settled. Noted were downside risks to the outlook, including elevated inflation, a resurgence of the pandemic, and tighter financing conditions that could worsen debt vulnerabilities in many emerging and developing economies.
The draft shows a call for well-calibrated monetary, fiscal, financial and structural policies. Central banks remain strongly committed to achieving price stability, according to the statement, and will ensure that inflation expectations remain well-anchored.
If delegates cannot unanimously agree to the communiqué, then host country India likely will issue a chair’s summary of the proceedings.
–With assistance from Anirban Nag, Ruchi Bhatia, Anup Roy, Kamil Kowalcze and Viktoria Dendrinou.
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