In US, FM flags India’s concerns on crypto-related challenges

New Delhi, April 12

Union Finance Minister Nirmala Sitharaman met International Monetary Fund’s First Deputy Managing Director Gita Gopinath in Washington on Wednesday and discussed a range of issues, including debt vulnerabilities and crypto-related challenges.

Sitharaman is leading a delegation to attend the spring meeting of the IMF and the World Bank in Washington.

During the meeting, Gopinath conveyed IMF’s concerns on key downside risks to the global economy, including financial sector stress, rising real interest rates, elevated debt, inflation, geo-political fragmentation and faltering growth in China.

“Sitharaman congratulated Gopinath for accelerating India’s work on the Global Sovereign Debt Roundtable and reiterated India’s commitment to fostering efforts to address growing debt vulnerabilities,” the Finance Ministry said in a tweet.

During the meeting, the Finance Minister noted IMF’s concerns on key downside risks to the economy, including financial sector stress, rising real interest rates, elevated debt, inflation, geo-political fragmentation, and faltering growth in China, as highlighted in the World Economic Outlook.

Sitharaman acknowledged IMF’s support to the G20 presidency of India in the form of inputs towards developing evidence-based policy guidance, the Finance Ministry said.

“Gopinath congratulated the Finance Minister on the fruitful discussions that translated the February consensus on the need for a globally coordinated policy response on crypto assets into an agreed set of guiding principles and an action plan on crypto assets,” the Finance Ministry said in another tweet.

The minster also participated in a roundtable on “Multilateral Development Bank Evolution: Building Shareholder Consensus” hosted by US Department of Treasury Secretary Janet Yellen at the World Bank headquarters on Wednesday.

The discussion focused on the impact of global development challenges such as climate change, pandemics, fragility and conflict on development progress, and reforms at the World Bank.

Sitharaman said the calls to reinvigorate the World Bank presented a historic opportunity to make the institution “fit for the purpose” to achieve the Sustainable Development Goals of the UN, alongside addressing national as well as global development challenges, both present and future.

Meets IMF official gopinath

• Nirmala Sitharaman congratulated IMF’s First Deputy Managing Director Gita Gopinath for accelerating India’s work on the Global Sovereign Debt Roundtable
• The FM noted IMF’s concerns on key downside risks to the economy, including financial sector stress, rising real interest rates, elevated debt and inflation