Finance leaders from the world's largest economies failed to come to a resolution over the war in Ukraine at the recent G20 meeting in India. Despite progress in restructuring distressed nations' debt, there was no consensus on the conflict in Ukraine, leading to the end of the meeting without a joint communique.
Differences Over Ukraine Conflict
The United States and its allies in the G7 industrial powers have been demanding a clear condemnation of Russia for the invasion of Ukraine. However, the Russian and Chinese delegations have opposed such language. India, the host of this year's G20 presidency, has taken a neutral stance on the war and is pressing the meeting to avoid using the word "war" in any communique.
On the sidelines of the G20 meeting, the International Monetary Fund met with the World Bank, China, India, Saudi Arabia, and the G7 on restructuring debt for distressed economies. Although there were disagreements among members, IMF Managing Director Kristalina Georgieva stated there was a commitment to bridging differences. No "deliverables" were achieved from the meeting, and further discussions are planned for the upcoming IMF and World Bank spring meetings in April.
Pressure on China for Debt Relief
Pressure has been building on China and other nations to take a large haircut in loans given to struggling developing nations. Chinese Finance Minister Liu Kun addressed the G20 meeting and reiterated Beijing's position for the World Bank and other multilateral development banks to participate in debt relief. U.S. Treasury Secretary Janet Yellen also intended to press all bilateral creditors, including China, to participate in meaningful discussions.