(Bloomberg) -- Finance ministers and central bank governors from the world’s wealthiest nations gather in Japan this week with a growing list of urgent issues to discuss, from the risk of more bank failures and the need for debt restructuring to the threat of a US default.

While recent Group of 20 finance minister meetings have struggled for consensus due to divisions over Russia’s invasion of Ukraine, the Group of Seven, comprising the US, UK, Germany, France, Italy, Japan and Canada, has proved to be a more coordinated coalition. 

At the G-7’s last get-together in Washington in April, the group reaffirmed its “unwavering support for Ukraine and unity in our condemnation of Russia’s war of aggression.” 

The officials this time around meet from Thursday through Saturday in the northern Japanese city of Niigata. Here are the main issues to watch out for:

Financial Stability

Following the collapse of Silicon Valley Bank and Credit Suisse’s takeover, the world has been looking warily at the state of global financial stability. First Republic Bank’s failure has added to those concerns.

Finance chiefs have so far made assurances that the impact on their economies and markets is limited, and that the regulatory situation has changed for the better since the global financial crisis. Still, they’ve also said they’re monitoring developments closely.

Japan’s Finance Minister Shunichi Suzuki said Tuesday that G-7 members will discuss how to strengthen the global financial system. The group will outline plans to prevent bank runs of the kind that led to SVB’s collapse, the Nikkei newspaper reported earlier.

US Debt Cap

Finance officials will be keen to hear the latest on the US debt limit stalemate from Treasury Secretary Janet Yellen. Leading into the meetings, Yellen said there are “simply no good options” for solving the standoff in Washington other than Congress lifting the cap.

President Joe Biden and congressional Republicans are locked in a staredown over raising the $31.4 trillion borrowing limit, with GOP leaders demanding promises of future spending cuts before they approve a higher ceiling. Biden has insisted on a “clean” increase, with budget talks kept separate.

Supply Chains 

How a nation builds its supply chains has become a proxy for its geopolitical colors. America has put pressure on allies to join restrictions on the sale of strategic products such as some semiconductor exports to China. Many in the G-7 are moving in that direction too. 

But it’s not just chips. G-7 ministers who met to discuss climate, energy and the environment in Sapporo, Hokkaido, in April discussed ways to improve supply chains of critical minerals essential for the clean energy transition. 

Finance leaders agreed to policy guidance for building “resilient” supply chains in April. A senior Japanese finance ministry official said the meeting in Niigata will seek to make that guidance more specific. 

A joint statement may also emphasize improving labor conditions and pushing for clean energy as part of the G-7’s stance on supply chains — a move that would contrast with China’s recent expansion of coal power plants.

Emerging Market Debt 

Sri Lanka’s fate continues to hang in the balance as its main creditors — China, Japan, France and others — have yet strike a deal on how to move forward on its debt. Still, an inaugural creditors meeting was held virtually Tuesday, with China sitting in as an observer.

A similar scenario of debt crisis is playing out in Zambia and Ghana, but progress may also come soon for those two nations. 

Finance chiefs are also expected to discuss the broader problem of debt that’s piled up in lower and middle income nations and how to keep Beijing involved in conversations to alleviate the strains. 

China has softened its insistence that multilateral lenders like the World Bank take losses on debt along with all other creditors. But it still remains at an impasse in terms of restructuring debts owed by developing nations in distress even after the World Bank made additional efforts to provide ultra-low interest loans and grants to those countries, according to the global lender’s chief.

Russia

Finance chiefs are likely to discuss any additional measures they can take to support Ukraine or to punish Russia for its “war of aggression.” So far, they’ve tried to contain Russia through various sanctions, freezing the assets of key officials and supporting Ukraine.

Still, the war has dragged on, despite Russia suffering more than 100,000 casualties so far including 20,000 killed since December, according to the US National Security Council.

Inflation

Inflation around the world has remained fairly sticky, with the European Central Bank insisting that its May rate hike move — though small — won’t be the last. The Reserve Bank of Australia also decided to hike rates again after a pause, in a surprise move that jolted markets earlier this month.

G-7 nations are likely to continue to discuss how to tame prices while also avoiding a further downturn in the global economy.

Crypto

Crypto assets remain on the agenda. Security concerns over digital money recently increased after North Korea-linked hacking groups allegedly stole $100 million in an attack on a crypto service last year. 

Privacy advocates are also worried about a loss of anonymity and the potential for government surveillance, with China the front-runner in the global race to launch a major central bank digital currency.

In April, the intergovernmental Financial Action Task Force met in Tokyo and agreed that it’s important to promote the effective implementation of international standards for crypto assets as well as monitor and review new risks.

--With assistance from Emi Urabe.

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