China tells IMF willing to take constructive part in debt talks
Posted on March 2nd, 2023
Courtesy Hiru News
Chinese Premier Li Keqiang told the head of the International Monetary Fund that China is open to participating in multilateral efforts to help heavily indebted nations in a constructive manner.
China is willing to take part in resolving relevant countries debt issues, Li said in a phone call with IMF Managing Director Kristalina Georgieva.
China maintains that all sides should take joint action and share equitable burden,” he said.
China, a major lender to debt-laden countries such as Sri Lanka and Pakistan, is mired in disputes with multilateral banks over which parties should take the lead in restructuring sovereign debt.
The IMF is considering approving a Sri Lanka bailout without the formal assurance of debt-restructuring support from Beijing.
The Chinese government, which accounts for about 52% of the nation’s bilateral debt, has offered term extensions via state-owned policy lender Export-Import Bank.
Georgieva told Li that the IMF wants to strengthen coordination and cooperation with China to handle the debt crisis in developing countries.