Commonwealth Finance Ministers Meeting
October 28, 2019
The Commonwealth Finance Ministers Meeting (CFMM) took place in the margins of the IMF/World Bank Annual Meetings in Washington DC, on Thursday 17th October 2019, under the theme ‘preventing debt crises: the role of creditors and debtors’. Ambassador Maurice Loustau-Lalanne, Minister of Finance, Trade, Investment and Economic Planning represented Seychelles at the meeting.
Ministers saw global trade and geopolitical tensions as having ‘intensified’, in a context where global debt has risen to an all-time high, estimated at $19 trillion. They stressed the need to make debt easier to manage for vulnerable countries, and for them to be eligible for periods of relief to stabilise growth during economic shocks. Ministers also recognised the potential of technology to improve debt transparency while urging closer collaboration to resolve tax challenges arising from growing digital commerce.
During the meeting, ministers also reviewed a suite of Commonwealth initiatives, including a disaster risk portal to offer streamlined and integrated information on available funds to respond to disasters, and a fin-tech toolkit to help banks leverage innovation in the financial sector. A presentation was also given on the Commonwealth’s flagship debt management system 'Commonwealth Meridian’ which is used by 63 countries to manage their debt which combines to a total of $2.5 trillion.
The meeting was chaired by the Minister of Finance of Cyprus, Harris Georgiades, who stated: “Disruptive technologies are challenging the financial system by increasing competition and reshaping conventional business models, thereby fuelling the creation of a whole new kind of financial ecosystem.”
Commonwealth ministers have therefore agreed that the Commonwealth should bring its powerful collective voice to ongoing discussions at the Organisation for Economic Co-operation and Development (OECD), particularly on behalf of smaller states. International agreement on digital taxation could enable countries to benefit by taxing large tech giants, even if they do not operate within their jurisdictions.
The next CFMM will be held in October 2020, and will be chaired by Ghana.