G20 Finance Ministers Meet in Bali

The G20 Finance Ministers and Central Bank Governors, met in Bali on 15-16 July 2022, for the third time under the Indonesian G20 Presidency.

Many members agreed that the recovery of the global economy has slowed and is facing a major setback as a result of Russia ́s war against Ukraine, which was strongly condemned, and called for an end to the war. One member expressed the view that the sanctions are adding to existing challenges. Members noted that existing challenges have been exacerbated, including supply-demand mismatches, supply disruptions, and increased commodity and energy prices, which have added to rising inflationary pressures and contributed to the increasing risk of food insecurity. Many members noted the importance of continued action on climate change, as well as on addressing debt vulnerabilities. Some members welcomed the G20 Presidency Note on Policy Setting for Exit Strategies to Support Recovery and Addressing Scarring Effect to Secure Future Growth.

The majority of members agreed that there is an alarming increase of food and energy insecurity, which are felt disproportionately by vulnerable groups. Some also expressed concerns about fertilizer availability which has the potential to further exacerbate the food crisis. Members affirmed their commitment to use all available policy tools to address current economic and financial challenges, including the risk of food insecurity. Many members agreed to take prompt collective actions on food security, including by working with other initiatives. Members supported multilateral initiatives. Some members called on international financial institutions to implement the commitments in their Action Plan to Address Food Insecurity. Members also welcomed the High Level Seminar on Strengthening Global Collaboration for Tackling Food Insecurity. Members agreed to preserve financial stability and long-term fiscal sustainability.

Members reaffirmed their commitment to prioritizing collective and coordinated action to get the pandemic under control. We welcome the establishment of a Financial Intermediary Fund (FIF) for pandemic Prevention, Preparedness and Response (PPR), as developed by the G20 Joint Finance-Health Task Force (JFHTF), and hosted by the World Bank (WB). The FIF will build on the existing global health architecture for PPR with a central role for the World Health Organization (WHO). It will help ensure adequate, sustained and better coordinated financing for pandemic PPR, and its catalytic role will facilitate co-financing and mobilization of domestic resources.

The pandemic has widened inequality for the most financially vulnerable and underserved groups especially women, youth, and Micro, Small, and Medium Enterprises (MSMEs). We welcome the progress made by the Global Partnership for Financial Inclusion (GPFI) and look forward to the finalization of the G20 Financial Inclusion Framework on Harnessing the Benefit of Digitalization, with the objective of boosting productivity and fostering a sustainable and inclusive economy for underserved groups guided by the G20 2020 Financial Inclusion Action Plan. The framework will build upon a Practical Implementation Guide for the G20 High-Level Principles for Digital Financial Inclusion, a living database related to digital and innovative financial products and services to MSMEs beyond credit, and a regulatory diagnostic toolkit for MSMEs access to digital financial services. To address digitalization and sustainable finance developments, and support financial inclusion and well-being,

Ministers and Governors looked forward to continuing their dialogue in the Fourth G20 Finance Ministers and Central Bank Governors’ Meeting in October 2022 in Washington DC, USA.

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