<p>&ldquo;That is one of the biggest challenges the world faces today. If countries start falling and their currencies start falling, there will be a huge cascading effect from all this,&rdquo; said Kant. He was responding to a question from the SBI chairman Dinesh Khara.</p>
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<p id="3">Kant said that China&rsquo;s debt conditions were so opaque that some recipient countries were unaware of the conditions. In some cases the terms of the debt could not be shared with Parliament.</p>
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<p id="2">Kant said that the IMF and the World Bank, designed for a post-World War world, need to change how they work. Given the capital requirement, should be providing credit enhancement and first loss guarantees so that nations can receive much larger funding.</p>
<p id="3">Speaking at the SBI Economic Conclave, Kant, who recently headed Niti Aayog, said all the regulators in the country need to act as development and change agents.</p>
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<p id="2">On the G20 summit, Kant said there was a lot of focus on climate action and India&rsquo;s carbon contribution at 52 giga tonnes was only 1.5% of the carbon space available. &ldquo;We are entitled to 17.5%. The challenge is for the world to grow in a sustainable manner, but to enable this the principle of just transition has to be accepted and the developed world has to finance the transition for developing countries,&rdquo; said Kant.</p>
<p id="3">He added that India must use this opportunity to technologically leapfrog and become a green economy. Bankers should finance companies that are going to go green and ensure that India makes this transition rapidly.</p>
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Kant: Debt risk rises as China doesn't play ball

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