Spread of macroeconomic distress in major economies, debt glut needs to be addressed: Janet Yellen

 Spread of macroeconomic distress in major economies, debt glut needs to be addressed: Janet Yellen

• Yellen, who met Sitharaman and discussed cooperation on the development of multilateral development banks and India's role in promoting sovereign debt restructuring, advancing the global macro economy and resolving food security issues arising out of the Russia-Ukraine war Highlighted the work needed to be done.

New Delhi: War, debt and economics are set to dominate the discussions of the G20 leaders over the next two days.

US Treasury Secretary Janet Yellen on Thursday flagged the need to spread the effects of macroeconomic austerity in major economies to the rest of the world and address challenges such as debt crises in vulnerable countries such as Zambia and Sri Lanka. The meeting of finance and central bank governors begins in Bengaluru from Friday.

Yellen, who met Finance Minister Nirmala Sitharaman and discussed cooperation on the development of multilateral development banks and India's role in promoting sovereign debt restructuring, spoke about advancing the global macro economy and food security issues arising out of the Russia-Ukraine war. Also highlighted the work needed to solve the problem. ,

Yellen criticized Russia's "immoral" war on Ukraine and told reporters that the US would provide Ukraine with an additional $10 billion in aid. The oil embargo by the US and allies is showing signs of working. Yellen also made it clear that Chinese entities that dodge sanctions on Russia will face consequences but that China has been instrumental in solving debt crises in some countries such as Zambia and Sri Lanka. demanded an active role of

On sanctions and aid to Russia, Yellen said, "We have made it clear that providing material assistance to Russia or helping it avoid systemic sanctions of any kind would be a matter of very serious concern to us and we certainly Will continue to clarify this." What are the rules for the Chinese government and companies and banks in their jurisdictions regarding our sanctions and what are the serious consequences they may face for violating them."

With regard to the loan, Yellen said she hoped China would be constructive in understanding the needs of countries such as Zambia and Sri Lanka.

Yellen said it was important that the IMF move quickly toward a fully funded program for Ukraine, which she said it would do. “Continued strong support for Ukraine will be a major topic of discussion during my time in India. Over the next few days, I also look forward to further work with my counterparts on the global macro economy. While there are significant headwinds, it is fair to say that the global economy is in better shape today than many predicted just a few months ago," Yellen said.

The Treasury Secretary said the shared vision between their counterparts was to take decisive action against the challenges facing their countries. "This includes combating high inflation where it exists. It is also important for us to be mindful of the spread of macroeconomic tightness to major economies in the rest of the world."

Yellen also talked about reforming the multilateral development banks and needed investment in the clean energy transition.

In a tweet, Yellen said she would discuss with her counterparts in the coming days the US' ongoing efforts to build a more resilient global economy and hold Russia accountable for its year-old war on Ukraine.

Yellen said the United States, along with its alliance, imposed a cap on the price of Russian crude in December and followed it earlier this month on the price of Russian refined products such as diesel and fuel oil.

“So far, we see clear signs that our policy is working to reduce Russian revenues and stabilize global energy markets. Even as global oil prices have remained relatively stable over the past few months, Russian oil Oil prices have fallen significantly. Last month, the Kremlin's oil revenues were about 60% lower than in the immediate aftermath of the invasion. "We have continued to negotiate deep discounts on Russian oil to emerging markets," Yellen said. Keeps oil on the global market but increasingly undercuts the Kremlin."