Critical China Change Position on Global Debt, Malpass Says




 

(Bloomberg) -- The heads of the World Bank and the International Monetary Fund both called for China to do more to help restructure global sovereign debt to reduce the risks of a debt crisis.

Most Read from Bloomberg

  • Putin Calls Russian Nukes Deterrent Factor, Says War Risk Rising

  • Tesla's Troubles Are Piling Up While Elon Musk Is Distracted With Twitter

  • WNBA Star Griner Freed in One-for-One Swap for Arms Dealer

  • Elon Musk's Bankers Consider Tesla Margin Loans to Cut Risky Twitter Debt

  • Peru's President Accused of Coup After Move to Dissolve Congress

In discussions with Chinese lenders and the Premier Li Keqiang over the past two days, the two organizations "discussed the urgency of more rapid progress in the ongoing debt restructuring, discussions including for Zambia," according to World Bank President David Malpass. "Changes in China's positions are critical in this effort," he said Friday in China after the meetings.

As the world's biggest sovereign lender to developing countries, China has come under criticism for its perceived lack of participation in a global effort to lessen developing nations' debt burdens. China's outstanding loans to developing countries totaled $157 billion when the pandemic hit, but the actual amount is probably significantly higher, because countries are patchy on reporting it.

"We look forward to China's participating actively with us in broader discussion on sovereign debt restructurings," Malpass said at a press conference after the meetings. "We also discussed in details the next steps needed to reconcile debt and improve the transparency of China's loan contracts, including removal of non-disclosure clauses, non-restructuring clauses, and hidden collateral and escrow arrangements."

Read more: China's Premier Vows to Work With G-20 on Debt Restructuring

"We have had very fruitful exchange both on the common framework and some specific cases like Chad and Zambia," IMF Managing Director Kristalina Georgieva said at the same event. "We talked about countries like Sri Lanka , Ghana, and how we can prevent individual distress potentially turning into a trigger for a global debt crisis."

Most Read from Bloomberg Businessweek

  • Airbus Is Coming for Boeing's 737

  • China Is the Wild Card for Global Inflation in 2023

  • The US's New Approach to Venezuela Is Starting to Bear Fruit

  • The Cult of the Retail Trader Has Fizzled

  • The Viral List That Turned a Yale Professor Into an Enemy of the Russian State

©2022 Bloomberg L.P.

COMMENTS

More Related News

Asian Equities Headed Lower, Stung by Fed Hawks: Markets Wrap
Asian Equities Headed Lower, Stung by Fed Hawks: Markets Wrap

(Bloomberg) -- Stocks in Asia edged lower Thursday as hawkish comments from Federal Reserve officials prompted investors to rethink expectations about US...

India
India's New Infrastructure Lender Plans Debut $610 Million Bond

(Bloomberg) -- India's newly created infrastructure-financing institution is planning a maiden bond issue of 50 billion rupees ($610 million) in the next...

Bond Traders Bet RBI May be Done With Hikes Despite Hawkish Tone
Bond Traders Bet RBI May be Done With Hikes Despite Hawkish Tone

(Bloomberg) -- Some traders in India's bond market are betting that the central bank may have actually reached the peak of its rate hikes, even as the...

Virgin Australia Weighing Debt Financing Plan Ahead of IPO, Sources Say
Virgin Australia Weighing Debt Financing Plan Ahead of IPO, Sources Say

(Bloomberg) -- Virgin Australia Airlines Pty Ltd. is considering taking on new debt in order to hand cash to owner Bain Capital just months ahead of the...

Hesai Raises $190 Million in Biggest Chinese US IPO Since Didi
Hesai Raises $190 Million in Biggest Chinese US IPO Since Didi

(Bloomberg) -- Hesai Group, a developer of sensor technologies used in self-driving cars, has raised $190 million in an initial public offering, the largest ...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments