The BRICS countries noted here on Thursday that high debt levels in some countries have reduced the fiscal space needed to address ongoing development challenges aggravated by the spillover effects from external shocks, particularly from sharp monetary tightening in advanced economies.
In the Johannesburg II Declaration adopted following the three-day 15th BRICS Summit, the BRICS countries pointed out that rising interest rates and tighter financing conditions have worsened debt vulnerabilities in many countries, noting that it is necessary to address the international debt agenda properly to support economic recovery and sustainable development while taking into account each nation’s laws and internal procedures.
One of the instruments to collectively address debt vulnerabilities is through the predictable, orderly, timely and coordinated implementation of the G20 Common Framework for Debt Treatment, with the participation of official bilateral creditors, private creditors and multilateral development banks, in line with the principle of joint action and fair burden-sharing, they stressed in the declaration.
