Advertisement
Advertisement

China willing to play constructive role in debt talks

By:
Reuters

BEIJING (Reuters) - China is willing to "constructively" participate in solving the debt problems of relevant countries under a multilateral framework, its Premier Li Keqiang said on Wednesday.

ASEAN Summit in Phnom Penh

BEIJING (Reuters) -China is willing to “constructively” participate in solving the debt problems of relevant countries under a multilateral framework, Premier Li Keqiang said on Wednesday.

China, the world’s largest bilateral creditor, has criticised multilateral lenders for not accepting losses, or haircuts, on loans to low-income countries while Beijing is being asked to do so on credit it has extended on its own.

In a phone call with International Monetary Fund Managing Director Kristalina Georgieva, Li said solving the debt problems of low-income countries requires the participation of all creditors, according to a State Council, or Cabinet, statement.

A spokesperson for the IMF told Reuters that Georgieva “had a very productive call with Prime Minister Li, who reaffirmed China’s willingness to play a constructive role in resolving the debt problems of countries in debt distress”.

China urged Group of 20 nations last month to conduct a fair, objective and in-depth analysis of the causes of global debt problems as calls mount for lenders to help debt-laden poor countries by accepting large losses on their loans.

China is a major lender to high-debt countries such as Ghana and Zambia.

Zambia owed Beijing nearly $6 billion out of a total external debt of $17 billion at the end of 2021, government data showed. Ghana owes China $1.7 billion, according to the International Institute of Finance, a financial services trade association focused on emerging markets.

(Reporting by Meg Shen and Ryan Woo, additional reporting by Jorgelina do Rosario in London Ediing by Tomasz Janowski and Gareth Jones)

About the Author

Reuterscontributor

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV. Learn more about Thomson Reuters products:

Did you find this article useful?

Advertisement