This article talks about ..... debt

On October 13, 2021, the fourth official meeting of Finance Ministers and Central Bank Governors led by the Italian Presidency of the G20 took place in Washington for the annual meetings of the International Monetary Fund and the World Bank Group.

There was talk of financial sustainability and the pandemic, of how all available tools will be implemented and used to deal with the negative consequences of Covid-19, of how the recovery will continue to be supported by avoiding the early withdrawal of support measures.

In line with the 2030 Agenda for Sustainable Development and the Paris Agreement, sustainable finance remains a cornerstone in order to promote the transition to more sustainable economies and societies. In this regard, Ministers and Governors approved the G20 Sustainable Finance Roadmap prepared by the SFWG Sustainable Finance Working Group.

They argued that sustainable finance is crucial in order to promote orderly transitions to inclusive societies. The summary report prepared by the SFWG is a multi-year document oriented to actions not only on climate but also on future work plans.
DSSI Debt Service Suspension Initiative

The progress on the Common Framework relating to debt treatment beyond the DSSI was very welcomed by Ministers and Governors, committing to intensify efforts to implement it in a timely, orderly and coordinated manner. The resulting improvements have been designed to give more confidence to the debtor countries and to give financial support from the IMF and Multilateral Development Banks.

Financial support

Ministers and Governors affirmed their commitment that the financial sector can provide adequate support for the recovery, they also confirmed a timely implementation of the Roadmap on cross-border payments.

Digital finance

There is a commitment to improve digital financial inclusion relating to the most vulnerable and under-served segments, including micro, medium and small enterprises (MSME), and the Global Partnership for Financial Inclusion (GPFI - Global Partnership for Financial Inclusion). The G20 Menu of Policy Options for digital financial literacy and financial consumer and MSME protection is therefore approved for this purpose "Enhancing digital financial inclusion beyond the COVID-19 crisis", with the aim of laying the foundations for new financial inclusion strategies in the post-pandemic world.

Ministers and Governors also said they look forward to the launch of the Joint Institute of International Finance (IIF) / OECD, encouraging all private sector lenders to join while remaining in line with the IIF's Voluntary Principles for Debt Transparency. 

The Global Stablecoins

The report on the progress of the FSB on the regulation and supervision of the "Global Stablecoin" agreements was also welcomed in the meeting. However, it is emphasized that no “Global Stablecoin” should start operating until all legal, regulatory and supervisory requirements are properly “designed”.

What are Stablecoins

They are cryptocurrencies and their price is "anchored" (fixed exchange rate or pegged exchange rate) to a cryptocurrency, to a fiat currency (ie a currency, with no intrinsic value or use value, established as a currency and underlying the government regulation), or commodities traded on the exchange.

The stablecoins have been designed in order to minimize the fluctuations of their price against the reference currency. One so-called “famous” stablecoin is Libra and has been announced by Facebook and its partners as their global stablecoin. Libra is presented as an "integrated model" including a new settlement asset, a new payment line and solutions for the end user.

They were born from the start-up, from the Fintech sector which with their innovation has proposed over 200 new payment solutions according to a survey by the European system of central banks. Along this line, the big tech companies using the amount of customers and their desire to expand on global markets are in a position to offer services related to cross-border transactions and it is precisely from here that stablecoins emerged.

One of the dangers found on stablecoins is that if made legal, they could threaten financial stability and monetary sovereignty.

Ministers and Governors confirmed that they support the G20 Policy Options Menu for digital financial literacy in order to provide guidance that sets the stage for new financial inclusion strategies in the post-pandemic period.

UNIGIRO - MONITORING ENTERPRISE CREDIT RISK