NEW DELHI: Finance minister Nirmala Sitharaman has said there is a need for sovereign ratings to adequately account for emerging market and developing economies (EMDEs) economic fundamentals to ensure that the cost of capital for them and their ability to attract private capital is factored in.
Speaking in Washington at the IMFC’s plenary session, Sitharaman also underlined engagement with credit rating agencies and called for improvements in methodology to ensure they capture the fundamentals reflecting the ability and willingness to repay.
Policymakers have been calling on credit rating agencies to ensure their ratings accurately reflect the fundamentals of emerging economies and their default risk. India has in the past called for an upgrade in the country’s sovereign ratings given robust growth and solid fiscal consolidation measures.
Sitharaman also said the global economy had shown “remarkable resilience” and output was nearing its potential in some major economies while inflation has generally moderated and moved closer to the central banks’ targets.
The FM cautioned that there are several downside risks, including growing geopolitical tensions. She emphasised that the IMF’s surveillance and policy guidance remain vital for countries with debt vulnerabilities. However, IMF should remain even handed in its policy advice.
A finance ministry post on X quoted the FM as saying that the current global order warrants governance reforms in major global institutions including IMF.
Sitharaman lauded IMF for its readiness to build bridges in a fragmented world and sought that it remains future ready to serve by tailoring its surveillance, lending, and capacity development to the needs of members after taking due cognisance of IMF’s core competency as well as resource availability within the organisation.
Trending
- Gold prices surge Rs 1,400 to Rs 79,300 per 10 grams
- Equity investors lose Rs 5.27 lakh crore as domestic markets slump
- Sebi removes 1% security deposit requirement for public issues
- China announces policy measures to shield exports from Trump’s tariff threat
- Raghu Vamsi group invests Rs 300 crore in integrated facility in Hyderabad
- Who is Sagar Adani, accused of bribery and fraud charges along with Gautam Adani in the US?
- Rupee hits a new low at 84.50 against US dollar
- India expected to remain stable amid US China trade war in 2025: Goldman Sachs
- Gautam Adani indictment: Moody’s says bribery charges credit negative for Adani group companies
- Moody’s to evaluate Adani Group’s governance amid bribery allegations