Gandhinagar

Janet Yellen's visit to India, where she attended a crucial G20 meeting and engaged in discussions with prominent Indian officials, is seen as an indication of the United States intention to strengthen cooperation with China. U.S. Treasury Secretary Yellen expressed eagerness on Sunday to foster collaboration with China in various areas of mutual concern, particularly in debt restructuring for impoverished nations.

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She also emphasized the need for reforms within multilateral development banks before any consideration of capital increases. This stance underscores the U.S.'s efforts to promote international cooperation and address pressing global challenges.

During a press conference preceding a gathering of the Group of 20 finance ministers and central bankers in India, Janet Yellen highlighted the positive outcomes of her recent visit to Beijing, stating that it has contributed to solidifying the relationship between the United States and China. Yellen emphasized that as the world's two largest economies, there is an obligation to collaborate on matters of shared interest, reflecting a commitment to international cooperation. The remarks underscore the importance of fostering a constructive and cooperative approach between the US and China to address global concerns.

Janet Yellen placed stress on addressing debt restructuring for underprivileged nations and implementing reforms within multilateral banking institutions. Reuters cited Yellen as highlighting the need for a comprehensive "user guide" on debt restructuring to provide clear guidance to borrowing nations and other stakeholders involved in the process.

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She also underscored the importance of strengthening the financial stability of the International Monetary Fund's Poverty Reduction and Growth Trust, which offers interest-free loans to the most impoverished countries. Yellen expressed the willingness of the US Treasury to support the IMF in exploring various options, including the utilization of internal fund resources. These remarks highlight Yellen's dedication to addressing the challenges faced by indebted nations and advocating for the improvement of global financial institutions.

In a specific reference to China's debt restructuring efforts in Zambia, Janet Yellen acknowledged that although the negotiation process had been time-consuming, they managed to overcome differences. She stressed the importance of applying the common principles established in Zambia's case to other similar situations rather than starting from scratch each time.Yellen emphasized the need for expedited progress, expressing her desire for the timely completion of debt relief initiatives in Sri Lanka and Ghana. She further stated that the prompt finalization of these programs would enable the International Monetary Fund (IMF) to initiate loan program assessments in the upcoming autumn.

Yellen also outlined a number of next steps for the World Bank and other multilateral development banks' evolution, but stated that any consideration of capital increases for the institutions must come after reforms aimed at expanding their role beyond poverty reduction to address global challenges such as climate change and pandemics.

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Furthermore, Reuters cited Yellen as stating that she estimated that multilateral development banks could potentially increase lending by $200 billion over a ten-year period using internal resources, thanks to ongoing balance sheet reforms and recommendations outlined in the G20 Capital Adequacy Framework report from last year. She mentioned her efforts to establish a new set of principles that would enable the "targeted use" of the World Bank's concessional funding for addressing global issues like climate change. Yellen also expressed her commitment to enhancing these resources and exploring additional.