IFF Annual Meeting Calls for Financial Risk Prevention to Avert Debt Crises

GUANGZHOU, China, Dec. 5, 2022 /PRNewswire/ -- The International Finance Forum (IFF) organized a panel discussion on Dec. 3 under the topic of "Global Debts Crisis and Risk Prevention" to explore possible solutions and approaches for countries that face higher debt amid global inflation.

The session was joined by several influential speakers, including Han Seung-soo, IFF Co-chairman and Chair of Council of the Presidents of the UN General Assembly (UNCPGA), Marcello Estevão, Global Director of the World Bank Group's Macroeconomics, Trade and Investment Global Practice (MTI), and Zhu Jun, Chairperson of Silk Road Fund, among others.

During the discussion, several experts suggested the establishment of a Beijing task force to offer solutions for the debt problems in emerging markets and help to reinforce cross border cooperation.

Han of IFF said that in the aftermath of the coronavirus pandemic, it has become challenging for policy makers to mull and adjust their economic policies.

Estevão said that debt levels in middle-income nations have risen sharply over the past decade and remain high at the moment.

As many developing countries are faced with escalating debt crises, Han said that sovereign debtors should further control the risks brought by high debt and should coordinate with creditors and gain the support of the international community.

Mark Walker, Senior Managing Director and Head of Sovereign Advisory of Guggenheim Securities, said that international financial institutions should play central roles in helping government officials in low-income nations and emerging economies to make better policy decisions to prevent risks.

In a bid to reinforce cross-border cooperation, experts have also suggested to set up what they called "Beijing Club" to form a tighter international network.

During the panel discussion, Reza Baqir, former Governor of the State Bank of Pakistan, said that the international community needs an adequate and effective framework in place to address sovereign debt crises in many countries and offer decent incentives to the authorities of these nations. It's also important to ensure that China is engaged in these conversations as creditors coordinate their efforts.

Estevão echoed Baqir's comments, and said that there needs to be a sense of urgency in coping with the debt crisis. In this case, a common framework will have to attract low-income nations and help out middle-income countries in the future, he said.

Estevão added that China has had a strong voice in G20 nations and is currently one of the largest bilateral creditors, and that he would expect any Beijing task force to carry out initiatives to assist with the situation.

About International Finance Forum (IFF)

The International Finance Forum (IFF) is a non-profit, non-official independent international organization founded in October 2003 by leaders from China, the US, the EU and the other G20 countries, in concert with emerging economies and the leaders of multiple international organizations, including the UN, the World Bank and the IMF. Also known as the Finance 20 (F20), the IFF is also a high-level permanent dialogue mechanism and multilateral cooperation organization within the world of finance.

SOURCE International Finance Forum (IFF)

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