War in Ukraine hangs over meeting of world’s leading finance chiefs
Finance chiefs from the world’s most powerful economies hardened their positions regarding language on Russia’s war in Ukraine, with the oneyear mark looming over other critical global issues such as debt relief for poorer nations.
Treasury Secretary Janet Yellen said Russia ending the war was “the most important thing” for the global economy as she accused officials from Moscow attending the Group of 20 meeting of being complicit in atrocities taking place in Ukraine.
Officials from the United Kingdom, Germany and South Korea echoed Yellen’s sentiment throughout the first of two days of meetings of finance ministers and central bank chiefs in Bengaluru, India.
Some participants on Friday, the one-year mark of Russia’s war in Ukraine, rallied for language regarding the war agreed at the November leaders’ meeting in Bali to be replicated in this weekend’s final statement.
“Either we stick to the Bali communique or France will oppose any communique of the finance ministers,” French Finance Minister Bruno Le Maire said in a press conference in Bengaluru, formerly known as Bangalore. “I cannot be clearer.”
Progress in negotiations on debt restructuring and loan relief has also been clouded by division.
In an address to the gathering Friday morning, Indian Prime Minister Narendra Modi recognized “serious economic difficulties” and “rising geopolitical tensions,” without calling out Russia’s war in Ukraine by name.
U.S.-China tensions remain heated in the aftermath of the spy balloon episode.
Those divisions are also spilling over into the topmost agenda items, including how to restructure debt for many low-income countries in distress.
“We’re calling on China to live up to its responsibilities,” German Finance Minister Christian Lindner said Friday. “We want to stick to established procedures,” and that involves development banks shouldn’t be part of any restructuring.
China says it wants to see the World Bank and other multilateral lenders it sees as U.S. proxies share in any creditor pain by also agreeing to a haircut on their loans.
In a video speech Friday, Chinese Finance Minister Liu Kun said G-20 nations should mobilize more financing through multiple channels to boost the global economic recovery.
Officials from the U.S. and China were holding a meeting Friday to discuss a range of issues including debt, a source familiar with the talks said.
The United States announced its nomination of former Mastercard Chief Executive Officer Ajay Banga to succeed the departing David Malpass as World Bank president — a post traditionally held by an American with the U.S. as the largest shareholder.
Germany’s Lindner called the U.S. nomination “remarkable” and specifically acknowledged Banga’s private-sector background as an asset toward winning more private capital, as well as a personality that could help bridge the developed and developing worlds.