India at the UNSC Pushes for Debt Relief for Nations Most in Need; Recalls G20 Presidency Initiative

New Delhi : India at the UNSC has called on the international community to make concerted efforts to provide debt relief for nations most in need while reiterating the focus on the Debt suspension initiative under its G20 Presidency.

India's Permanent Representative to the UN, Ruchira Kamboj, at the High-level debate in UNSC on debt sustainability and socio-economic equality for all, on Tuesday said, “The World Bank has issued a stark warning: a silent debt crisis is currently engulfing developing economies with weak credit ratings. Specifically, 28 developing economies—those with the weakest credit ratings—are mired in a debt trap with no imminent prospects for escape."

“This crisis poses a significant threat to our collective commitment to ensure sustainable development and eradicate poverty. We must undertake concerted efforts to provide solutions to these countries, including debt relief for some and a comprehensive overhaul of the global debt restructuring framework, which has thus far failed to deliver substantial relief to the nations most in need”, she told the United Nation Security Council.

The top envoy further noted that India's G20 presidency, not only highlighted this issue but also led the group in re-affirming its commitments made under the Common Framework for Debt Treatments, beyond the Debt Service Suspension Initiative. “We supported the implementation of this framework in a predictable, timely, orderly, and coordinated manner. A pivotal outcome of these efforts was the inclusion of the African Union as a full member of the G20 at the New Delhi Summit. This ensures more robust participation by developing countries in discussions aimed at reforming the global economic and financial institutions”, Kamboj added.

It is pertinent to note that India is actively contributing to sustainable development in the most vulnerable countries of the Global South. Through the India-UN Development Partnership Fund, India is supporting 78 projects across 55 countries, ensuring that the citizens of these nations can pursue socio-economic growth and prosperity without being hindered by debt vulnerabilities.

The Indian envoy to the UN reaffirmed India's dedication to advancing the reform of the international financial architecture. “We are committed to supporting our friends and partners in the Global South as they strive to withstand and ultimately overcome the burden of unsustainable debt”, she said.

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