GUANGZHOU, China, Dec. 5, 2022
/PRNewswire/ -- The International Finance Forum (IFF) organized a
panel discussion on Dec. 3 under the
topic of "Global Debts Crisis and Risk Prevention" to explore
possible solutions and approaches for countries that face higher
debt amid global inflation.
The session was joined by several influential speakers,
including Han Seung-soo, IFF
Co-chairman and Chair of Council of the Presidents of the UN
General Assembly (UNCPGA), Marcello Estevão, Global Director of the
World Bank Group's Macroeconomics, Trade and Investment Global
Practice (MTI), and Zhu Jun,
Chairperson of Silk Road Fund, among others.
During the discussion, several experts suggested the
establishment of a Beijing task
force to offer solutions for the debt problems in emerging markets
and help to reinforce cross border cooperation.
Han of IFF said that in the aftermath of the coronavirus
pandemic, it has become challenging for policy makers to mull and
adjust their economic policies.
Estevão said that debt levels in middle-income nations have
risen sharply over the past decade and remain high at the
moment.
As many developing countries are faced with escalating debt
crises, Han said that sovereign debtors should further control the
risks brought by high debt and should coordinate with creditors and
gain the support of the international community.
Mark Walker, Senior Managing
Director and Head of Sovereign Advisory of Guggenheim Securities,
said that international financial institutions should play central
roles in helping government officials in low-income nations and
emerging economies to make better policy decisions to prevent
risks.
In a bid to reinforce cross-border cooperation, experts have
also suggested to set up what they called "Beijing Club" to form a
tighter international network.
During the panel discussion, Reza
Baqir, former Governor of the State Bank of Pakistan, said that the international
community needs an adequate and effective framework in place to
address sovereign debt crises in many countries and offer decent
incentives to the authorities of these nations. It's also important
to ensure that China is engaged in
these conversations as creditors coordinate their efforts.
Estevão echoed Baqir's comments, and said that there needs to be
a sense of urgency in coping with the debt crisis. In this case, a
common framework will have to attract low-income nations and help
out middle-income countries in the future, he said.
Estevão added that China has
had a strong voice in G20 nations and is currently one of the
largest bilateral creditors, and that he would expect any
Beijing task force to carry out
initiatives to assist with the situation.
About International Finance Forum (IFF)
The International Finance Forum (IFF) is a non-profit,
non-official independent international organization founded
in October 2003 by leaders from China, the US, the
EU and the other G20 countries, in concert with emerging economies
and the leaders of multiple international organizations, including
the UN, the World Bank and the IMF. Also known as the Finance 20
(F20), the IFF is also a high-level permanent dialogue mechanism
and multilateral cooperation organization within the world of
finance.
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SOURCE International Finance Forum (IFF)