Finance Minister Sri Mulyani on screen during the opening of G20's third meeting of Finance Ministers and Central Bank Governors (3rd FMCBG) in Nusa Dua, Badung, Bali, Friday, July 15, 2022. (ANTARA PHOTOS/Agatha Olivia Victoria/am/my)
Some 60 percent of low-income countries were at risk of debt, while a dozen developing countries might be unable to pay off debt in the course of next year, Finance Minister Sri Mulyani Indrawati stated.
"Hence, this is just not one or two big cases. It has (gotten worse)," the minister remarked during the opening of G20 Indonesia's third meeting of Finance Ministers and Central Bank Governors in Nusa Dua, Badung, Bali.
The minister highlighted the gravity of that issue, so it would receive extra attention from the finance ministers and central bank governors of G20 countries, along with international organizations and multilateral agencies.
A triad of global issues -- war, increase in commodity prices, and risk of global inflation -- caused a considerable negative impact on debts, with not only countries with low income but also nations with moderate income, and even those with higher ones reeling from it.
Indrawati elaborated that prior to and after the pandemic, fiscal facilities had been used by several countries that affect the condition of debt. The three threats that loom large would put everything at higher risk and result in the situation spiraling out of control, as it became too complex to be resolved.
This significant issue preceded other global problems that had yet to be discussed by all countries in the last two years, such as the pandemic, climate change, climate adaptation and mitigation, and the future of debt in several countries with low income.
"This has led to a significant challenge to our collective goal, in which Indonesia was chosen as the presidency that time, carrying forward Italy's presidency. What we want to see in 2022 is to recover together, recover stronger," she added.
Thus, the G20 forum was gathering once more, sorely tested with the critical, complex situation, Indrawati stated. The expectations of G20 member countries were higher amid the global predicament of the economic crisis.
Related news: Indonesia's foreign debt declined to US$413.6 bln in January 2022
Related news: Do not harbor negative perception about government debt: Nazara
"Hence, this is just not one or two big cases. It has (gotten worse)," the minister remarked during the opening of G20 Indonesia's third meeting of Finance Ministers and Central Bank Governors in Nusa Dua, Badung, Bali.
The minister highlighted the gravity of that issue, so it would receive extra attention from the finance ministers and central bank governors of G20 countries, along with international organizations and multilateral agencies.
A triad of global issues -- war, increase in commodity prices, and risk of global inflation -- caused a considerable negative impact on debts, with not only countries with low income but also nations with moderate income, and even those with higher ones reeling from it.
Indrawati elaborated that prior to and after the pandemic, fiscal facilities had been used by several countries that affect the condition of debt. The three threats that loom large would put everything at higher risk and result in the situation spiraling out of control, as it became too complex to be resolved.
This significant issue preceded other global problems that had yet to be discussed by all countries in the last two years, such as the pandemic, climate change, climate adaptation and mitigation, and the future of debt in several countries with low income.
"This has led to a significant challenge to our collective goal, in which Indonesia was chosen as the presidency that time, carrying forward Italy's presidency. What we want to see in 2022 is to recover together, recover stronger," she added.
Thus, the G20 forum was gathering once more, sorely tested with the critical, complex situation, Indrawati stated. The expectations of G20 member countries were higher amid the global predicament of the economic crisis.
Related news: Indonesia's foreign debt declined to US$413.6 bln in January 2022
Related news: Do not harbor negative perception about government debt: Nazara
