The Facts
In India on Monday, talks over debt restructuring for developing countries and climate change hit hurdles during the first day of the third finance meeting of the G20 countries, reportedly due to failure to bridge key differences and to low attendance.
A senior official at the meeting told Reuters that the G20 could not make "much headway with the debt restructuring issue," as indebted nations refused to agree to use Zambia's $6.3B debt restructuring from last month as a roadmap for deals.
The Spin
Narrative A
The world is dangerously close to a devastating debt crisis that would undo years of economic progress by developing nations, yet the G20 countries have failed to create a plan to help struggling nations. As countries sit in limbo, international organizations talk about prioritizing a new Common Framework while making little-to-no progress. It may not seem significant to the world's largest countries, but millions of lives depend on avoiding a debt crisis that is becoming increasingly likely.
Narrative B
Despite the roadblocks, progress is being made towards a debt restructuring framework that will help developing countries avoid a crisis and get back on the right track. Most G20 countries are doing great work to push the ball forward despite the hurdles brought by China's unwillingness to get a deal done. We're not there yet, but the G20 is getting close to an equitable Common Framework for all parties.
