G20 finance meeting to end without consensus on war in Ukraine
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[February 25, 2023]
By Aftab Ahmed and David Lawder
BENGALURU (Reuters) - Finance leaders from the world's biggest economies
were unable to resolve differences on Saturday over the war in Ukraine
and inched forward on moves to restructure distressed nations' debt,
people familiar with the discussions said.
The meeting of finance ministers and central bank chiefs of the Group of
20 (G20), hosted by India, was likely to end later in the day without a
joint communique because there was no consensus on how to describe the
conflict in Ukraine, three delegates told Reuters.
The United States and its allies in the Group of Seven (G7) industrial
powers have been adamant in demanding the communique squarely condemn
Russia for the invasion of its neighbour a year ago, but the Russian and
Chinese delegations have opposed such language.
Russia and China were upset by use of the G20 platform to discuss
political matters, two of the delegates said.
U.S. Treasury Secretary Janet Yellen earlier told Reuters that it was
"absolutely necessary" for there to be a statement in the communique
condemning Russia.
"And I think the G7 is certainly united on that, so it's something that
I would expect and I think is necessary and appropriate," she said.
Russia, a member of the G20 but not of the G7, refers to its actions in
Ukraine as a "special military operation", and avoids calling it an
invasion or war.
India is pressing the meeting to avoid using the word "war" in any
communique, G20 officials have told Reuters previously.
India, which holds this year's G20 presidency, has kept a largely
neutral stance on the war, declining to blame Russia for the invasion,
seeking a diplomatic solution and sharply boosting its purchases of
Russian oil.
India and China were among the nations that abstained on Thursday when
U.N. voted overwhelmingly to demand Moscow withdraw its troops from
Ukraine and stop fighting.
Besides the G7 nations, the G20 bloc also includes countries such as
Australia, Brazil and Saudi Arabia.
The delegates said the meeting was likely to end with a statement by the
host summarising the discussions.
"In the absence of a consensus, the option for India would be to issue a
chair statement," one official said.
India's foreign, finance and information ministries did not immediately
respond to requests seeking comment.
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U.S. Treasury Secretary Janet Yellen
looks on as she holds a roundtable with India's technology leaders
on the sidelines of G20 finance ministers' meeting on the outskirts
of Bengaluru, India, February 25, 2023. REUTERS/Samuel Rajkumar
DEBT NEGOTIATIONS
On the sidelines, the International Monetary Fund (IMF) held a
meeting on Saturday with the World Bank, China, India, Saudi Arabia
and the G7 on restructuring debt for distressed economies, but there
were disagreements among members, said IMF Managing Director
Kristalina Georgieva.
"We just finished a session in which it was clear that there is a
commitment to bridge differences for the benefit of countries,"
Georgieva, who co-chaired the roundtable with Indian Finance
Minister Nirmala Sitharaman, told reporters.
One delegate told Reuters there was some initial progress made,
mostly on the language around the issue, but restructuring was not
discussed in detail.
Yellen said there were no "deliverables" from the meeting, which was
mostly organisational.
Further discussions of the panel are planned around the time of the
IMF and World Bank spring meetings in April.
Pressure has been building on China, the world's largest bilateral
creditor, and other nations to take a large haircut in loans given
to struggling developing nations.
In a video address to the G20 meeting on Friday, Chinese Finance
Minister Liu Kun reiterated Beijing's position that the World Bank
and other multilateral development banks should participate in debt
relief by taking haircuts alongside bilateral creditors.
Yellen had said before the debt meeting that she would press all
bilateral creditors, including China, to participate in meaningful
discussions, adding that debt treatment for Zambia and financing
assurances for Sri Lanka were "most urgent".
Zambia owed Beijing nearly $6 billion of a total external debt of
$17 billion at the end of 2021, according to government data, while
Ghana owes China $1.7 billion, according to the International
Institute of Finance, a financial services trade association
focussed on emerging markets.
Sri Lanka owed Chinese lenders $7.4 billion - or nearly a fifth of
public external debt - by the end of 2022, calculations by the China
Africa Research Initiative think tank show.
(Reporting by Shivangi Acharya, Sarita Singh, Aftab Ahmed, Christian
Kraemer and David Lawder; Writing by Raju Gopalakrishnan; Editing by
William Mallard and Frances Kerry)
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