The UAE delegation, consisting of Ahmad bin Sulaiman and Khalifa Al Faheem, participated in the second meeting of the International Financial Architecture Working Group (IFA WG) within the G20 Finance Track for 2023, held on March 30th and 31st in Paris, France.
The meeting was attended by G20 members, invited countries, and international organizations, and was primarily focused on assessing progress made on the 2023 IFA WG work plan. The discussions centered on addressing the sustainability of sovereign debt and finding ways to limit its increase, proposing solutions to support vulnerable countries, bridging the gap, implementing recommendations by the Independent Review on Multinational Development Banks’ Capital Adequacy Frameworks, and strengthening Multinational Development Banks to tackle shared global challenges of the 21st century. Additionally, members exchanged their perspectives on the effects of climate change-related policies on capital flows, according to WAM.
During the meeting, the UAE team stressed the need for collaborating with regional organizations to leverage their expertise in formulating initiatives that will promote global debt sustainability. The team emphasized the importance of providing incentives for debt transparency to encourage the adoption of enhanced debt management practices in vulnerable countries.
The UAE team also discussed the implications of climate change policies on capital flows and highlighted the importance of promoting greater integration across financial markets and enabling stronger international cooperation to mitigate the potential for market distortions. Accordingly, the UAE team suggested that international organizations develop tools and methodologies needed to track the impact of climate change policies on capital flow.
The members agreed to review the progress on the groups’ work plan during the next upcoming meeting, at a date to be set by the India G20 presidency.
