FM for reforms in global financial firms

Finance Minister Nirmala Sitharaman on Tuesday made a strong case for reforms of the international financial architecture and credit rating systems to enhance inclusivity and equity.

Speaking at the 4th International Conference on Financing for Development (FFD4) in Seville, Spain, she also supported the call for a reversal in the decline of Official Development Assistance (ODA), and urged developed countries for enhancing climate finance.

Sitharaman emphasised that the climate finance should be predictable, accessible and concessional — particularly for adaptation in vulnerable countries.

“India supports reforms to the international financial architecture to enhance inclusivity and equity, including MDB (multilateral development bank) reforms and fairer credit rating systems. MDB lending must be aligned with long-term development goals and backed by robust monitoring frameworks to ensure that funds are used as intended,” she said.

Pointing out that sovereign debt has become a structural barrier to inclusive and sustainable growth for many countries, she said, the Global Sovereign Debt Roundtable, launched during India’s G20 Presidency, has played a pivotal role in enhancing debt transparency and comparability of treatment in debt restructuring.

Going forward, she said, effective implementation of the G20 Common Framework coupled with preventative debt management, is essential.

India also supported international cooperation to modernize tax systems and curb illicit financial flows.