G20 Finance Ministers and Central Bank Governors Meeting

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14-Apr-2023: 2nd meeting of G20 Finance Ministers and Central Bank Governors (FMCBG) under the Indian G20 Presidency

The second meeting of G20 Finance Ministers and Central Bank Governors (FMCBG) under the Indian G20 Presidency was held on 12-13 April 2023, on the margins of the 2023 Spring Meetings of the International Monetary Fund and the World Bank Group. Union Finance Minister Smt. Nirmala Sitharaman, and Governor, Reserve Bank of India (RBI), Shaktikanta Das jointly chaired the meeting. The meeting saw participation of around 350 delegates from G20 members, 13 invitee countries, and various international and regional organisations.

The meeting was organised in three sessions covering the Global Economy, International Financial Architecture, Sustainable Finance, Financial Sector, Financial Inclusion, and International Taxation. The goal of this FMCBG meeting was to deliberate on the progress made by the various workstreams of the G20 Finance Track on the deliverables that were tasked to them by the Ministers and Governors in the February G20 FMCBG Chair’s Summary and Outcome Document and to seek guidance on the way forward.

During the session on Global Economy and International Financial Architecture, members discussed the key challenges to the global economic outlook, including the war in Ukraine, food and energy insecurity, climate change, and recent risks to financial stability. Members agreed that the G20 can contribute to building a common understanding on fostering a conducive environment for global economic recovery, and ensuring that the most vulnerable countries and sections of the population are adequately protected.

Ministers and Governors also discussed the progress of the implementation of recommendations of the Independent Panel of MDBs’ Capital Adequacy Frameworks (CAF). They also shared their expectations from the recently constituted G20 Expert Group on “Strengthening Multilateral Development Banks (MDBs)”. On the debt agenda, discussions focused on strengthening multilateral coordination towards addressing the increasing debt distress in low-income and vulnerable middle-income countries. Ministers and Governors reiterated the need to swiftly complete the ongoing debt treatments under the Common Framework and beyond. Discussions also covered the impact of climate change-related policies on capital flows, among others.

During the second session on Sustainable Finance, Financial Sector, and Financial Inclusion, discussions focussed on the mobilisation of resources for climate change, the role of the multilateral financial institutions in catalysing private finance flows for Sustainable Development Goals and the role of the G20 in scaling up and encouraging wider adoption of social impact investment instruments. Members also deliberated on the macroeconomic and financial challenges posed by the crypto-assets ecosystem and exchanged views on potential global policy responses to crypto-assets, taking into account the risks, especially to Emerging Markets and Developing Economies (EMDEs). On financial inclusion, discussions focused on leveraging Digital Public Infrastructure (DPI) for financial inclusion and productivity gains. Ministers and Governors also shared perspectives on the development of the 2023 Financial Inclusion Action Plan (FIAP).

The third session on International Taxation discussed the need for coordinated efforts toward effective implementation and wider adoption of the two-pillar international tax package. Ministers shared suggestions on how best G20 can complement global efforts to enhance tax transparency.

On the margins of the G20 FMCBG sessions, high-level side events were also held. A meeting of the Global Sovereign Debt Roundtable (GSDR) was also held on April 12, 2023, which was co-chaired by Hon’ble Finance Minister, IMF MD, and World Bank President. The meeting saw discussions on the current global debt landscape and ways to address existing challenges in debt restructuring.

In the run-up to the G20 FMCBG meeting, the G20 Finance and Central Bank Deputies met with the major MDBs on April 12, 2023 to discuss the status of implementation of recommendations of the G20 Independent Panel of MDBs’ CAF. These updates will contribute to the preparation of the G20 Roadmap on CAF which will be one of the key deliverables of the Finance Track under the Indian G20 Presidency.

The progress achieved during the 2nd G20 FMCBG meeting will inform the discussions during the 3rd G20 FMCBG meeting which will be held in July 2023 in Gandhinagar, India, and subsequently the Leaders’ Summit scheduled to be held in New Delhi on September 8-9, 2023.

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14-Apr-2023: 2nd meeting of G20 Finance Ministers and Central Bank Governors (FMCBG) under the Indian G20 Presidency

The second meeting of G20 Finance Ministers and Central Bank Governors (FMCBG) under the Indian G20 Presidency was held on 12-13 April 2023, on the margins of the 2023 Spring Meetings of the International Monetary Fund and the World Bank Group. Union Finance Minister Smt. Nirmala Sitharaman, and Governor, Reserve Bank of India (RBI), Shaktikanta Das jointly chaired the meeting. The meeting saw participation of around 350 delegates from G20 members, 13 invitee countries, and various international and regional organisations.

The meeting was organised in three sessions covering the Global Economy, International Financial Architecture, Sustainable Finance, Financial Sector, Financial Inclusion, and International Taxation. The goal of this FMCBG meeting was to deliberate on the progress made by the various workstreams of the G20 Finance Track on the deliverables that were tasked to them by the Ministers and Governors in the February G20 FMCBG Chair’s Summary and Outcome Document and to seek guidance on the way forward.

During the session on Global Economy and International Financial Architecture, members discussed the key challenges to the global economic outlook, including the war in Ukraine, food and energy insecurity, climate change, and recent risks to financial stability. Members agreed that the G20 can contribute to building a common understanding on fostering a conducive environment for global economic recovery, and ensuring that the most vulnerable countries and sections of the population are adequately protected.

Ministers and Governors also discussed the progress of the implementation of recommendations of the Independent Panel of MDBs’ Capital Adequacy Frameworks (CAF). They also shared their expectations from the recently constituted G20 Expert Group on “Strengthening Multilateral Development Banks (MDBs)”. On the debt agenda, discussions focused on strengthening multilateral coordination towards addressing the increasing debt distress in low-income and vulnerable middle-income countries. Ministers and Governors reiterated the need to swiftly complete the ongoing debt treatments under the Common Framework and beyond. Discussions also covered the impact of climate change-related policies on capital flows, among others.

During the second session on Sustainable Finance, Financial Sector, and Financial Inclusion, discussions focussed on the mobilisation of resources for climate change, the role of the multilateral financial institutions in catalysing private finance flows for Sustainable Development Goals and the role of the G20 in scaling up and encouraging wider adoption of social impact investment instruments. Members also deliberated on the macroeconomic and financial challenges posed by the crypto-assets ecosystem and exchanged views on potential global policy responses to crypto-assets, taking into account the risks, especially to Emerging Markets and Developing Economies (EMDEs). On financial inclusion, discussions focused on leveraging Digital Public Infrastructure (DPI) for financial inclusion and productivity gains. Ministers and Governors also shared perspectives on the development of the 2023 Financial Inclusion Action Plan (FIAP).

The third session on International Taxation discussed the need for coordinated efforts toward effective implementation and wider adoption of the two-pillar international tax package. Ministers shared suggestions on how best G20 can complement global efforts to enhance tax transparency.

On the margins of the G20 FMCBG sessions, high-level side events were also held. A meeting of the Global Sovereign Debt Roundtable (GSDR) was also held on April 12, 2023, which was co-chaired by Hon’ble Finance Minister, IMF MD, and World Bank President. The meeting saw discussions on the current global debt landscape and ways to address existing challenges in debt restructuring.

In the run-up to the G20 FMCBG meeting, the G20 Finance and Central Bank Deputies met with the major MDBs on April 12, 2023 to discuss the status of implementation of recommendations of the G20 Independent Panel of MDBs’ CAF. These updates will contribute to the preparation of the G20 Roadmap on CAF which will be one of the key deliverables of the Finance Track under the Indian G20 Presidency.

The progress achieved during the 2nd G20 FMCBG meeting will inform the discussions during the 3rd G20 FMCBG meeting which will be held in July 2023 in Gandhinagar, India, and subsequently the Leaders’ Summit scheduled to be held in New Delhi on September 8-9, 2023.

2021

14-Oct-2021: Finance Minister Smt. Nirmala Sitharaman attends 4th G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting in Washington D.C.

Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman participated in the 4th G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting under the Italian Presidency held on 13th October, 2021 in Washington D.C. on the sidelines of the IMF-World Bank Annual Meetings.

The meeting was the final FMCBG Meeting under the G20 Italian Presidency and saw discussions and agreements on various issues concerning global economic recovery, pandemic support to vulnerable countries, global health, climate action, international taxation and financial sector issues.

For a sustained recovery from the pandemic, the G20 Finance Ministers and Central Bank Governors agreed to avoid any premature withdrawal of support measures, while preserving financial stability and long-term fiscal sustainability, and safeguarding against downside risks and negative spillovers.

Smt. Sitharaman noted that for transitioning from crisis to recovery, one of the major challenges is ensuring equitable access to vaccines for all. The Finance Minister suggested that keeping up the support, building resilience, enhancing productivity and structural reforms should be our policy goals.

The Finance Minister appreciated the role of G20 in rallying pandemic response and supporting vulnerable countries through debt relief measures and the new SDR allocation. Going forward, Smt. Sitharaman suggested on focusing efforts on making the benefits reach the intended countries.

The Finance Minister joined the G20 Ministers and Governors in agreeing on the need for strengthening efforts to counter climate change. Smt. Sitharaman emphasised that considering the varied policy spaces and different starting points of countries, the centrality of climate justice based on United Nations’ Framework Convention on Climate Change and principles of Paris Agreement would be critical for taking forward discussions towards successful outcomes.

For addressing tax challenges arising from the digitalisation of the economy, the G20 FMCBGs endorsed the final agreement as set out in the Statement on a two-pillar solution and the Detailed Implementation Plan released by the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) on 8th October, 2021.

The meeting concluded with the G20 FMCBGs reaffirming their commitment to advance the forward-looking agenda set in the G20 Action Plan to steer the global economy towards a strong, sustainable, balanced and inclusive growth.

10-Jul-2021: Finance Minister Smt. Nirmala Sitharaman attends Third G20 Finance Ministers and Central Bank Governors Meeting

Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman participated virtually in the Third G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting under the Italian Presidency. The two-day meeting held on July 9th and 10th, 2021 saw discussions on a wide range of issues including global economic risks and health challenges, policies for recovery from the CoVID-19 pandemic, international taxation, sustainable finance and financial sector issues.

The G20 Finance Ministers and Central Bank Governors reaffirmed their resolve to use all available policy tools for as long as required to address the adverse consequences of COVID-19.

Smt. Sitharaman appreciated the Italian G20 Presidency for identifying three catalysts of resilient economic recovery from the pandemic as being Digitalization, Climate Action and Sustainable Infrastructure and shared the Indian experience of integrating technology with inclusive service delivery during the pandemic.

The Finance Minister shared recent policy responses of Government of India to strengthen the health system and economy, including the efficient application of CoWIN Platform to scale-up vaccination in India. Smt. Sitharaman added that this platform has been made freely available to all countries as humanitarian needs outweigh commercial considerations in this extraordinary crisis. The Finance Minister stated that as the co-chair of Framework Working Group of the G20, India along with UK, views digitalization as an agenda that will continue to play a key role in bolstering economic growth.

Smt. Sitharaman referred to the global risks in view of the emerging CoVID-19 variants and highlighted the need for international coordination and cooperation on this front. The Finance Minister joined other G20 members in welcoming the Report of the G20 High-Level Independent Panel on Financing the Global Commons for Pandemic Preparedness and Response and emphasized on the urgent need to strengthen multilateralism for global health.

Smt. Sitharaman shared her insights on the Italian Presidency’s ongoing work on a roadmap to guide sustainable finance. Speaking on the need for aligning recovery strategies with climate concerns, the Finance Minister called for climate action strategies to be based on the principles of the Paris Agreement and noted the criticality of timely fulfilment of international commitments on climate finance and technology transfer.

Regarding the “Statement on a two-pillar solution to address the tax challenges arising from the digitalisation of the economy” released by the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS-IF) on July 1st, the G20 Finance Ministers called on the OECD/G20 BEPS-IF to swiftly address the remaining issues. Smt. Sitharaman suggested that further work needs to be done to ensure a fairer, sustainable and inclusive tax system which results in meaningful revenue for developing countries.

7-Apr-2021: Finance Minister Smt. Nirmala Sitharaman attends Second Virtual G20 Finance Ministers and Central Bank Governors Meeting

Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman participated virtually in the Second G20 Finance Ministers and Central Bank Governors (FMCBG) meeting under the Italian Presidency here today to discuss policy responses to global challenges to restore strong, sustainable, balanced and inclusive growth.

The G20 Finance Ministers and Central Bank Governors discussed Updates of the G20 Action Plan in response to COVID-19. They also discussed supporting the financing needs of the most vulnerable economies, the progress on the international taxation agenda, promoting greener transitions and the pandemic related financial regulation issues.

Smt. Sitharaman urged all G20 members to ensure equitable access and widespread distribution of vaccines. The Finance Minister shared that India is running an ambitious programme of rapid domestic vaccination and has emerged as a key global producer of vaccines and medical products, especially during the pandemic. Smt. Sitharaman stated that India has covered over 87 million citizens in its vaccination drive so far and has supplied over 64 million doses to 84 countries, including 10 million doses as grant. The Finance Minister urged the G20 High Level Independent Panel on Financing the Global Commons for Pandemic Preparedness and Response to draw upon such country experiences.

Smt. Sitharaman reflected on the global growth projections and underlined the need for continued coordination amidst the persistence of uncertainties associated with the virus. The Finance Minister said that the G20 Action Plan has served as a good guidance tool and shaping recovery is the mainstay of its current update.

Noting the discourse in the G20 on climate change, Smt. Sitharaman emphasised on the need for progress on commitments made under the Paris Agreement on climate finance and technology transfer. Smt. Sitharaman suggested that while channeling flows of international financial institutions into green transitions, it should also be recognised that the immediate challenge, particularly for developing and Low-Income Countries, is to restore growth. For boosting support to the most vulnerable economies, the Finance Minister supported extending the Debt Service Suspension Initiative, by six months, till December 2021.

26-Feb-2021: Finance Minister Smt. Nirmala Sitharaman attends virtual G20 Finance Ministers and Central Bank Governors Meeting

Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman participated virtually in the First G20 Finance Ministers and Central Bank Governors (FMCBG) meeting under the Italian Presidency here today to discuss policy actions for transformative and equitable recovery along with other issues on the agenda including global economic outlook, financial sector issues, financial inclusion and sustainable finance.

Smt. Sitharaman spoke about India’s policy response to the pandemic. The Finance Minister said that India’s domestic policies have been based broadly on supporting citizens through measures such as credit guarantees, direct transfers, food guarantees, economic stimulus packages and accelerating structural reform. Smt. Sitharaman also spoke about India’s vaccination programme, which is the world’s largest and the most ambitious vaccination drive. The Finance Minister also mentioned that India has extended vaccine support to several countries.

During this meeting, G20 Finance Ministers and Central Bank Governors also discussed the implications of climate change on global growth and financial stability. Speaking on the Presidency’s proposal to undertake systematic policy dialogue on climate risk and environment taxation, Smt. Sitharaman suggested that these conversations should remain within the ambit of Paris Agreement and should be based on the principles of common but differentiated responsibility, respective capability, and the voluntary nature of the commitments. The Finance Minister also stressed the importance of transfer of green technologies and scaling up of climate finance.

2020

15-Apr-2020: Smt. Nirmala Sitharaman attends the 2nd G20 Finance Ministers and Central Bank Governors Meeting

Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman participated in the virtual session of the 2nd G20 Finance Ministers and Central Bank Governors (FMCBG) meeting under the Saudi Arabian Presidency today, to discuss the global economic outlook amid evolving COVID-19 pandemic crisis.

Finance Minister appreciated the Saudi Presidency for their tireless efforts in delivering on the outcomes as mandated by the G20 Leaders during the Extraordinary Leaders’ Summit, particularly in preparation of G20 Action Plan in Response to COVID-19.

Smt. Sitharaman had represented India in the 2nd Extraordinary Virtual G20 FMCBG Meeting held on March 31, 2020 wherein she talked about the importance of international cooperation and coordinated actions in ensuring that the financial system continues to support and quickly revive the global economy.

Today in her intervention, Finance Minister focused upon the role of Finance Ministers and Central Bank Governors in safeguarding the lives and livelihood of people while maintaining macroeconomic stability in a sustainable manner. She shared with her G20 counterparts the measures taken by Government of India to provide the vulnerable sections with swift, timely and targeted assistance. She added that so far, within a couple of weeks, India has disbursed financial assistance amounting to USD 3.9 billion to more than 320 million people, with a special focus on direct benefit transfer through digital technology so that the exposure of beneficiaries to public places is minimised. She informed the august gathering of finance ministers and central bank governors that India is now reaping benefits of the farsighted measures of financial inclusion which are part of the pioneering reforms carried out by our Prime Minister.

Smt Sitharaman also said that the monetary policy measures undertaken by Government of India, Reserve Bank of India and other regulators have helped de-freeze the market and catalyse credit flows. These measures include liquidity support of USD 50 billion, regulatory and supervisory measures for credit easing, relief on debt servicing through moratoriums on instalments of term-loans, eased working capital financing and deferred interest payments on such financing.

An Action Plan has been prepared by G20 members on the directions of G20 Leaders to protect lives, safeguard people’s jobs and incomes, restore confidence, preserve financial stability, revive growth and recover stronger, provide help to countries needing assistance , coordinate on public health and financial measures and minimise disruption to global supply chain. Talking about the Action Plan, Hon’ble Union Minister called it a step in the right direction and said that the document will guide individual and collective actions for the G20 members in responding to COVID-19 pandemic in short and medium term. She expressed her sincere hope for the global community to overcome this crisis soon and said that the lessons learnt will enable us to develop prudent policy measure to combat any such crisis in the future.