Last week, U.S. Secretary of Treasury Janet L. Yellen held a press conference to address some key priorities at the G20, including the need to alleviate debt distress. She also emphasized the need for cooperation with China, support for Ukraine, and efforts toward a fair international tax system.
"There is much more work to do. But I believe this trip was an important start. I am eager to build on the groundwork that we laid in Beijing to mobilize further action," U.S. Secretary of Treasury Janet L. Yellen said.
According to a release, Treasury Secretary Janet L. Yellen delivered a significant address during the press conference held in Gandhinagar, India, focusing on the priorities of the Third meeting of G20 Finance Ministers and Central Bank Governors (FMCBG) under the Indian G20 Presidency on July 17-18, 2023. Secretary Yellen's speech underscored crucial issues and outlined the necessary actions to tackle them effectively.
A primary concern highlighted by Secretary Yellen was the urgent need to alleviate debt distress in emerging markets and developing countries. She emphasized the importance of timely debt treatments as a means to stimulate economic growth and foster stability. Recognizing the evolving landscape, Yellen discussed the reforms and changes in the operating model of the World Bank, along with the transformation of multilateral development banks (MDBs). "Our reforms to the World Bank's balance sheet will responsibly unlock as much as $50 billion in additional lending capacity over the next decade. As part of our evolution agenda, we estimate that the MDBs as a system could unlock $200 billion over the next decade just from the measures already being implemented or under deliberation," Yellen stated.
During her address, Secretary Yellen also emphasized the significance of cooperation between the United States and China in addressing global challenges. She referred to her recent visit to Beijing, highlighting the establishment of a resilient communication channel between the two nations. "There is much more work to do. But I believe this trip was an important start. I am eager to build on the groundwork that we laid in Beijing to mobilize further action," Secretary Yellen said expressing her optimism.
Yellen expressed unwavering solidarity with Ukraine and reaffirmed the coalition's strong support for the country in defending against Russia's illegal aggression. "Let me be clear: our coalition's support for Ukraine is unequivocal. The United States will stand with Ukraine for as long as it takes. And I know the allies and partners in our coalition will do so as well. Budgetary support is critical to Ukraine's resistance," Yellen said.
The Treasury Secretary further discussed ongoing efforts to establish a fair and updated international tax system. She highlighted the implementation of a global minimum tax on the earnings of large multinational corporations as a key focus. Additionally, reforms to reallocate taxing rights per modern economic realities were emphasized. Yellen underscored the importance of global cooperation and concerted efforts to address these economic challenges effectively.
The press conference concluded with Secretary Yellen's commitment to continue working diligently on these critical priorities in collaboration with international partners. Her address served as a call to action for global cooperation and proactive measures to address pressing economic issues.