2nd Meeting of G20 Finance Ministers and Central Bank Governors (FMCBG) under the Indian G20 Presidency 12-13 April 2023, Washington, DC 

1. The second meeting  of  G20 Finance  Ministers  and  Central  Bank Governors (FMCBG) under the Indian G20 Presidency was held on 12-13 April 2023, on the margins of the 2023 Spring Meetings of the International Monetary Fund and the World Bank Group .Finance Minister of India, Nirmala  Sitharaman  and  Governor,  Reserve  Bank  of  India  (RBI), Shaktikanta Das jointly chaired the meeting.The meeting saw participation of around 350 delegates from G20 members, 13 invitee countries, and various international and regional organizations.

2. The  meeting was organised  in three  sessions covering  the Global Economy,  International  Financial  Architecture,  Sustainable  Finance, Financial Sector, Financial Inclusion,and International Taxation. The goal of this FMCBG meeting was to deliberate on the progress made by the various workstreams of the G20 Finance Track on the deliverables that were tasked to them by the Ministers and Governors in the February G20 FMCBG Chair’s Summary and Outcome Document and to seek guidance on the way forward.

3. During the session on Global Economy and International Financial Architecture, members discussed the key challenges to the global economic outlook, including the war in Ukraine, food and energy insecurity, climate change, and recent risks to financial stability. Members agreed that the G20 can contribute to building a common understanding on fosteringa conducive 2 environment for global economic recovery,and ensuringthat the most  vulnerable  countries  and  sections  of  the  populationare adequately protected.

4. Ministers  and  Governors  also  discussed the  progress  of  the implementation of recommendations of the Independent Panel of MDBs’ Capital Adequacy Frameworks (CAF). They also shared their expectations from the recently  constituted G20  Expert  Groupon  “Strengthening Multilateral Development Banks (MDBs)”. On the debt agenda, discussions focused on strengthening- multilateral coordination towards addressing the increasing debt distress  in  low-income  and  vulnerable  middle-income countries. Ministers and Governors reiterated the need toswiftly complete the ongoing debt treatments under the Common Framework and beyond. Discussions also covered the impact of climate change-related policies on capital flows, among others.

5. During the second session on Sustainable Finance, Financial Sector, and  Financial  Inclusion,  discussions  focussed  on the mobilisation of resources for climate change, the role of the multilateral financial institutions in catalysing private finance flows for Sustainable Development Goals and the role of the G20 in scaling up and encouraging wider adoption of social impact  investment  instruments.  Members  also  deliberated on the macroeconomic  and  financial  challenges  posed  by  the  crypto-assets ecosystem  and  exchanged views  on  potential  global  policy  responses  to crypto-assets, taking into account the risks, especially to Emerging Markets and Developing Economies (EMDEs). Onfinancial inclusion, discussions focused  onleveraging  Digital  Public  Infrastructure  (DPI)  for  financial inclusion  and  productivity  gains. Ministers  and  Governors  also shared perspectives on the development of the 2023 Financial Inclusion Action Plan (FIAP).

6. The  third  session  on  International  Taxation discussed the need for coordinated efforts toward effective implementation and wider adoption of the two-pillar international tax package. Ministers shared  suggestions  on  how  best  G20  can  complement  global  efforts  to enhance tax  transparency.

7  .On the margins of the G20 FMCBG sessions, high-level side events were also held. A meetingof the Global Sovereign Debt Roundtable (GSDR) was also held on April 12, 2023, which was co-chairedby Hon’ble Finance Minister, IMFMD,and World Bank President. The meeting saw discussions on the current global debt landscape and ways to address existing challenges in debt restructuring. A press statement was released followingthe meeting and it may be accessed at https://www.imf.org/en/News/Articles/2023/04/12/pr23117-global-sovereign-debt-roundtable-cochairs-press-stmt .

8. In the run-up to the G20 FMCBG meeting, the G20 Finance and Central Bank Deputies met with the major MDB son April 12, 2023 to discuss the status of implementation of recommendations of the G20 Independent Panel of MDBs’ CAF. These updates will contribute to the preparation of the G20 Roadmap on CAF which will be one of the key deliverables of the Finance Track under the Indian G20 Presidency.

9 .The progress achieved during the 2nd G20 FMCBG meeting will inform the discussions during the 3rdG20 FMCBG meeting which will be held in July 2023 in Gandhinagar, India,and subsequently the Leaders ’Summit scheduled to be held in New Delhi on September 9-10,2023.