IDNEWSNOW.COM, Jakarta – Finance Minister Sri Mulyani Indrawati in the G20 virtual summit on Sunday asked leaders, finance ministers, and central bank governors of member states to closely monitor the level of public and private debts during the pandemic.
She said many countries have widened their fiscal deficit in order to implement extraordinary policies in handling the COVID-19 pandemic. “The steps that are taken to maintain sustainability of the levels of public and private debts will be aspects to focus on amidst the COVID-19 pandemic and after the pandemic passes,” said Sri Mulyani during her session accompanying President Joko Widodo in Sunday evening’s virtual G20 summit.
Apart from the debt issues, G20 leaders also shed light on the potential increase of borrowing costs and also crowding out in financial markets due to many countries intending to increase spending in order to recover the economy.
The former World Bank managing director also reports that the G20 Summit saw many leaders discuss policies in response to the global pandemic that had crippled the world’s economy. She also highlighted the need to use fiscal and monetary instruments to protect people through social safety nets and create job opportunities to counter the layoffs caused by COVID-19.
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