India provided financial support to its neighbours much before IMF: Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman has said that India provided financial support to its neighbours in times of distress with no conditions attached much before the International Monetary Fund (IMF) reached some countries in the neighbourhood. 

While participating in a panel discussion on the ‘Bretton Woods Institutions at 80: Priorities for the Next Decade’, organised by the Center for Global Development, Sitharaman spoke on how India has extended a line of credit to many African nations to build their institutions, bridges, secretariats and railway stations. 

Pointing towards the slow process adopted by the IMF, she said, “Much before the IMFs of the world reach some countries in our neighbourhood and I’m not saying this with a sense of boast. I’m saying it more with a sense of responsibility and again, sorry, I have no axe to grind with the IMF. But with no conditions attached, we have given sums of money, which I don’t want to name here, number here, because my neighbours are very dear to me.”

Union Finance Minister has assured that India will continue to provide assistance to Global South countries. Sitharaman said she would not share details regarding the money that India provided to the nations, stressing that they are “very important” to her cultural values and neighbourhood. 

Nirmala Sitharaman said, “We’ve come out in time to help countries in distress. And in the typical oriental fashion I will not name the country, I will not name the money which have been given because they are very important to my cultural values and also to my neighbourhood. So, much before nimble-footed institutions of the Bretton Woods have come there because we are closer to them, this money has been used even better.”

“Many African countries, we extend a line of credit which is a highly discounted line of credit to build the institutions, to build the bridges, to build the ports, railway stations, secretariats. And let me add, with a sense of humility, many of them are in no position to pay back and we have not made a noise about it. We will still continue to do it because we think the South, the Global South will be with us. We want to be with them. We want to help them out. We want all of them to get an opportunity. So we’re doing that,” she added. 

Other panellists during the discussions included Emeritus President and Charles W Eliot University Professor, Harvard University, Lawrence H Summers, Spain’s Minister of Economy, Trade and Business Carlos Cuerpo and Egypt’s Minister of Planning, Economic Development, and International Cooperation Rania A. Al Mashat. 

Nirmala Sitharaman arrived in Washington, DC on Wednesday. India’s Ambassador to the US, Vinay Kwatra, welcomed her in Washington, DC. Prior to visiting Washington, DC, Sitharaman was in New York. 

In a post on X,  the Ministry of Finance stated, “Union Minister of Finance and Corporate Affairs Smt. @nsitharaman is welcomed at Washington DC by India’s Ambassador to USA, Shri @AmbVMKwatra after her arrival from New York, today evening.”

During her visit to the US, Sitharaman will participate in the Annual Meetings of the International Monetary Fund (IMF) and the World Bank, the 4th G20 Finance Ministers and Central Bank Governor (FMCBG) Meetings, besides the G20 Joint Meeting of FMCBGs, Environment Ministers, and Foreign Ministers; and G7 – Africa Ministerial Roundtable, Ministry of Finance said in an earlier press release. 

The Union Finance Minister will hold bilateral meetings with leaders of several countries, including the United Kingdom, Switzerland, and Germany. In a high-level event, Nirmala Sitharaman will participate in a World Bank Group discussion ‘From Idea to Implementation: New Financial Solutions to Accelerate Development’.