China must show it can play by world debt-revamp rules: IMF
1 year, 8 months ago

China must show it can play by world debt-revamp rules: IMF

Hindustan Times  

China, the biggest bilateral creditor to developing countries, needs to show it can operate within established international debt-relief processes for poor nations struggling to pay, the chief of the International Monetary Fund said. “China has been very slow to recognize that multilateral debt restructuring requires China to play by the rules that are already established,” Managing Director Kristalina Georgieva said in a Bloomberg Television interview with Tom Keene Thursday. “Now is the time for China to demonstrate that they are capable of playing by these rules.” The Paris Club of mostly western traditional creditor nations joined with newer lenders China, India and Saudi Arabia in late 2020 to agree to a roadmap called the Common Framework to restructure debt from poor countries on a case-by-case basis. While she said that China’s engagement in the Common Framework to reorganize debt and the Global Sovereign Debt Roundtable are “very much welcome,” a number of western nations including the US, the IMF’s largest shareholder, have accused Beijing of dragging its feet in providing relief.

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History of this topic

Forum on China-Africa Cooperation 2024: Don’t Be Distracted by the Money
2 months ago

Forum on China-Africa Cooperation 2024: Don’t Be Distracted by the Money

The Diplomat  

In early September, during the ninth Forum on China-Africa Cooperation summit held in Beijing, China’s promise to give $50.7 billion of financial support to African countries over the next three years dominated international headlines. In the Beijing Action Plan, the most important publication from the summit, China pledged to “provide Africa with RMB 360 billion of financial support in the …

Nation to back financial institutions
4 months ago

Nation to back financial institutions

China Daily  

Exhibitors promote coffee products during an expo in Nairobi, Kenya earlier this year. LI YAHUI/XINHUA China will encourage and support financial institutions from both its market and Africa to strengthen exchanges and innovate financial cooperation models in the years ahead, said government officials on Tuesday. Speaking ahead of the 2024 Summit of the Forum on China-Africa Cooperation, which will be …

IMF reform reality: The US and China must cooperate, willy-nilly
5 months ago

IMF reform reality: The US and China must cooperate, willy-nilly

Live Mint  

In July 1944, exactly 80 years ago, representatives of 44 countries met in an obscure New Hampshire village to negotiate the Bretton Woods Agreement that established the International Monetary Fund. In terms of its surveillance of countries’ policies, the IMF needs to address its perceived lack of even-handedness; whereas emerging and developing countries are held to demanding standards, high-income countries …

Chinese assistance holds key for Zambia
6 months ago

Chinese assistance holds key for Zambia

China Daily  

People attend the groundbreaking ceremony of the Zambia-China Friendship Road in Lusaka, the capital of Zambia, on May 27. WANG CHUNYAN/XINHUA Sustained financial assistance from China has significantly improved connectivity in Zambia, producing major projects that have formed the backbone of the country's infrastructure, said experts. "China has contributed more to Zambia's infrastructure than any other country," said Francis Mwape …

Debt, fiscal challenges facing low-income countries worry IMF
8 months ago

Debt, fiscal challenges facing low-income countries worry IMF

The Hindu  

Shareholders of the International Monetary Fund agreed on the importance of addressing challenges faced by low-income countries, many of which are facing unsustainable debt burdens, IMF Managing Director Kristalina Georgieva said on April 19. Impact of high debt levels on low-income countries Ms. Georgieva, in a meeting of the Global Sovereign Debt Roundtable hosted by the IMF and the World …

Zambia and Creditors to Restart Bond Restructuring Negotiations
9 months ago

Zambia and Creditors to Restart Bond Restructuring Negotiations

Hindustan Times  

Foreign investors are set to restart talks with Zambia officials on a deal to restructure $3 billion of global bonds, marking a potential turning point in the African nation’s years-long effort to lift itself out of default, according to people familiar with the matter. The sides are trying to reach a deal before next month’s International Monetary Fund meetings in …

China agrees to consider restructuring repayment of loans, says Maldives President Muizzu
11 months, 1 week ago

China agrees to consider restructuring repayment of loans, says Maldives President Muizzu

Firstpost  

Maldives President Mohamed Muizzu said on Saturday that China, the largest external creditor to the country, has agreed to consider restructuring the repayment of loans taken by his country and the governments will initiate negotiations soon. Muizzu told the media in Male after his return from a five-day high-profile state visit to China that he has directly appealed to Chinese …

From deflation to high debt burden: Here’s 5 things happening in Chinese economy
1 year, 1 month ago

From deflation to high debt burden: Here’s 5 things happening in Chinese economy

Live Mint  

China is facing the challenges of an economic deceleration and a substantial debt crisis within its real estate industry. “Combating persistent disinflation amid weak demand remains a challenge for Chinese policymakers,” Bruce Pang, chief economist for Greater China at Jones Lang LaSalle Ltd told Bloomberg. Better growth forecasts- Despite a slowdown, the future doesn't look very bleak for the Chinese …

Money Morass: Desperate China to refocus on stressed BRI borrowers, hanging projects
1 year, 1 month ago

Money Morass: Desperate China to refocus on stressed BRI borrowers, hanging projects

Firstpost  

China has pumped billions of dollars in grants and loans into developing countries over the last ten years. Called “One Belt, One Road” in Chinese, the Belt and Road Initiative started as a program for Chinese companies to build transportation, energy and other infrastructure overseas funded by Chinese development bank loans. China has granted about $1 trillion in loans to …

China's great wall of debt driving ‘unsustainable’ increase in borrowing, IMF warns
1 year, 3 months ago

China's great wall of debt driving ‘unsustainable’ increase in borrowing, IMF warns

The Telegraph  

China is driving global debt back towards unsustainable levels amid an “unparalleled” borrowing binge by property developers and local governments, according to the International Monetary Fund. The IMF warned that a declining global debt share in 2022 risked being just a “pandemic blip” and said there was an urgent need to “restore fiscal sustainability”. “Global debt, which remained significantly higher …

China reiterates support for Sri Lanka’s debt relief ahead of crucial IMF review
1 year, 4 months ago

China reiterates support for Sri Lanka’s debt relief ahead of crucial IMF review

The Hindu  

China has pledged help for Sri Lanka’s debt challenge yet again,even as theRanil Wickremesinghe government tries to finalise the terms of restructuring its foreign loans with bilateral creditors. Chinese Foreign Minister Wang Yi on Wednesday “vowed that China will help Sri Lanka effectively address the challenges of financial debt”, according to a statement from the office of Prime Minister Dinesh …

Increasing G20 cooperation on debt and investment in Africa
1 year, 4 months ago

Increasing G20 cooperation on debt and investment in Africa

Hindustan Times  

Africa’s long-standing and difficult history with international capital can be attributed to a complex set of factors, including historical legacies, structural adjustment programmes and, most recently, Chinese investment. While Africa’s hard-won credit market access had been hailed as the key to boosting the region’s growth and development, countries now face significant challenges in their relationship with international capital, with profound …

Along with Japan and India, China can join debt relief effort for Sri Lanka: Nirmala Sitharaman
1 year, 4 months ago

Along with Japan and India, China can join debt relief effort for Sri Lanka: Nirmala Sitharaman

The Hindu  

As a large creditor to Sri Lanka, China is welcome to join the effort steered by Japan, India and France to help the island nation cope with its debt distress, Finance Minister Nirmala Sitharaman said on Saturday. Terming multilateral development banks’ reforms and debt-relief measures for many stressed economies as the top two finance track priorities for India during its …

BRI a tool for development, not debt traps
1 year, 5 months ago

BRI a tool for development, not debt traps

China Daily  

The claims that the Belt and Road Initiative has been used as a tool to create debt traps for receptive countries are completely wrong, said Jin Keyu, associate professor of economics at the London School of Economics and Political Science. "The majority of debt in emerging markets is owed to Western institutions, multilateral institutions and financial institutions, including private creditors …

Debt-plagued Zambia reaches deal with China, other nations to rework $6.3B in loans, French say
1 year, 6 months ago

Debt-plagued Zambia reaches deal with China, other nations to rework $6.3B in loans, French say

Associated Press  

PARIS — Zambia and its government creditors, including China, have reached a deal to restructure $6.3 billion in loans, the French government announced Thursday on the sidelines of a global finance summit in Paris. The agreement covers loans from countries including France, the UK, South Africa, Israel and India as well as China — Zambia’s biggest creditor at $4.1 billion …

IMF urges crisis-hit Sri Lanka to decide on debt restructuring
1 year, 6 months ago

IMF urges crisis-hit Sri Lanka to decide on debt restructuring

Live Mint  

The International Monetary Fund has urged crisis-hit Sri Lanka to decide on debt restructuring, including with China by this October this year to obtain the applied bailout fund of USD 2.9 billion from the Washington-based financial body. China's delaying tactics clearly indicate that without their assistance, an IMF bailout would be impossible for Sri Lanka, according to a report published …

China is pushing poor nations like Pakistan into its debt trap, one at a time
1 year, 7 months ago

China is pushing poor nations like Pakistan into its debt trap, one at a time

Op India  

The People’s Republic of China has been pushing poor countries to the brink of economic ruin through its well-thought-out ‘debt trap’ and its unforgiving nature when it comes to the recovery of loans. An AP analysis found that countries heavily indebted to China are draining foreign currency reserves used to pay interest on loans, leaving some with just months before …

How the debt ceiling showdown could play into China’s hands and weaken US global power
1 year, 7 months ago

How the debt ceiling showdown could play into China’s hands and weaken US global power

CNN  

CNN — President Joe Biden’s pledge to the world that “America is back” after a period of political turbulence is looking a little shaky after a debt showdown with Republicans forced him to shorten an Asia-Pacific trip designed to showcase US power amid a challenge from China. A trickle of progress in Biden’s White House talks with Republican House Speaker …

Nation's pace of recovery offers global inspiration
1 year, 8 months ago

Nation's pace of recovery offers global inspiration

China Daily  

A view of Beijing's CBD area on Aug 19, 2022. The World Bank has revised its global growth prospects, thanks to a strong economic rebound by China following Beijing's optimization of COVID-19 containment measures. China's economy is now expected to grow by 5.1 percent in 2023, injecting new impetus into the global economic outlook, which is now projected to grow …

China left out of Sri Lanka debt talks amid angst over delays
1 year, 8 months ago

China left out of Sri Lanka debt talks amid angst over delays

Live Mint  

Sri Lanka and major creditors are set to formally launch talks to restructure the nation’s debt without China — its biggest bilateral lender — a signal of growing frustration with Beijing’s approach to debt woes in the developing world. Hanging over those wider talks have been concerns about China’s role in negotiations involving countries like Sri Lanka and Zambia, which …

Debt crisis key priority of India’s G20 presidency, says FM in US
1 year, 8 months ago

Debt crisis key priority of India’s G20 presidency, says FM in US

Hindustan Times  

Washington: Reiterating that addressing the growing debt distress was a priority for India’s G20 presidency, Union finance minister Nirmala Sitharaman has emphasised debt transparency, information-sharing, clarity on the comparability of treatment, predictability and timeliness of restructuring process as key principles that should govern the process. Sitharaman made the remarks while co-chairing a meeting of the global sovereign debt roundtable along …

China denies ’debt trap diplomacy’ amid $59.87 loan to African nations
1 year, 8 months ago

China denies ’debt trap diplomacy’ amid $59.87 loan to African nations

Live Mint  

Chinese foreign ministry spokesperson Wang Wenbin clarified that China is not responsible for African countries' "debt trap," but rather a supportive partner in helping them and other developing nations break free from the "poverty trap," as reported by CCTV. As per the report, Wenbin stressed that those accusations have no factual basis and, "China attaches great importance to Africa's debt …

Irresponsible & unreasonable: China slams US over its debt trap accusation
1 year, 8 months ago

Irresponsible & unreasonable: China slams US over its debt trap accusation

India Today  

China on Thursday called remarks by US Treasury Secretary Janet Yellen "irresponsible" and "unreasonable" after the former said Beijing's lending activities leave developing countries "trapped in debt." "I am very, very concerned about some of the activities that China engages in globally, engaging in countries in ways that leave them trapped in debt and don't promote economic development," Yellen said …

US aims to counter China’s influence in global institutions, Yellen says
1 year, 8 months ago

US aims to counter China’s influence in global institutions, Yellen says

Live Mint  

The United States is working hard to counter China's influence in international institutions and in lending to developing countries, US Treasury Secretary Janet Yellen said on Wednesday. "I am very very concerned about some of the activities that China engages in globally, engaging in countries in ways that leave them trapped in debt and don't promote economic development," she said …

China to lift global growth amid uncertainty, IMF head says
1 year, 8 months ago

China to lift global growth amid uncertainty, IMF head says

China Daily  

Kristalina Georgieva, managing director of the International Monetary Fund, speaks at the China Development Forum 2023 in Beijing on March 26, 2023. China's economy is experiencing a strong rebound that will deliver a welcome lift to the world economy, contributing about one-third of global growth in 2023, said Kristalina Georgieva, managing director of the International Monetary Fund. It is advisable …

India's G20 Summit: What Global Governance Dilemma Means for Modi's Leadership
1 year, 9 months ago

India's G20 Summit: What Global Governance Dilemma Means for Modi's Leadership

The Quint  

If the G20 finance ministers can break the deadlock, it could unlock restructurings in Sri Lanka and Zambia—those worst-affected by sovereign debt defaults, helping them with immediate aid while also renewing hope for other nations seeking desperate debt relief measures. A larger concern that stems from the gridlock seen in the way G20 functions is evident from the fact how …

Debt load may pose threat to nations: PM
1 year, 9 months ago

Debt load may pose threat to nations: PM

Live Mint  

Prime Minister Narendra Modi cautioned on Friday that unsustainable debt levels posed a threat to the financial stability of nations and called upon G20 finance ministers and central bank governors to work towards restoring stability, confidence, and growth to the global economy. International Monetary Fund managing director Kristalina Georgieva said on Thursday that the IMF, World Bank and India’s G20 …

China in Quandary as Pakistan Faces Debt Default After Steep Fall in Forex Reserves
1 year, 10 months ago

China in Quandary as Pakistan Faces Debt Default After Steep Fall in Forex Reserves

News 18  

Watching warily Pakistan plunging into the worst economic crisis with prospects of defaulting on foreign loans, China which holds Islamabad’s largest debt on Monday said it backed measures taken by its “all-weather friend” to tide over the disastrous situation and hoped it will, in the end, pull through. Pakistan’s current account deficit shrank 90.2 per cent to USD 0.24 billion …

West's debt trap allegations don't stand up to scrutiny
1 year, 10 months ago

West's debt trap allegations don't stand up to scrutiny

China Daily  

Earlier this month, during his first official visit abroad since his appointment as China's foreign minister, Qin Gang vehemently denied allegations that his country's aid to African nations is a "debt trap". According to the World Bank's international debt statistics, by the end of 2020, the sovereign debt of 82 low- and middle-income countries held by commercial and multilateral lenders …

Amid Pakistan crisis, IMF says China must change its debt policy
1 year, 10 months ago

Amid Pakistan crisis, IMF says China must change its debt policy

Live Mint  

International Monetary Fund Managing Director Kristalina Georgieva, in an interview with CBS's 60 Minutes on February 5, stated that China's finance minister and Central bank governor would participate in a roundtable with other creditors and other borrowing countries in February in India. About a quarter of China's GDP comes from the real estate sector, which has slowed the country's economic …

‘Cope with your own debt’, China tells US over Zambia debt relief
1 year, 10 months ago

‘Cope with your own debt’, China tells US over Zambia debt relief

Al Jazeera  

Washington and Beijing are vying for influence in Africa, where Chinese banks are major lenders. “The biggest contribution that the US can make to the debt issues outside the country is to cope with its own debt problem and stop sabotaging other sovereign countries’ active efforts to solve their debt issues,” the Chinese embassy in Zambia said in a statement …

Yellen pushes for China to address Zambia’s big debt burden
1 year, 11 months ago

Yellen pushes for China to address Zambia’s big debt burden

Associated Press  

LUSAKA, Zambia — U.S. Treasury Secretary Janet Yellen, on the second leg of an African tour aimed at promoting American investment and ties, said on Monday it’s crucial to immediately address Zambia’s heavy debt burden with China. On Monday, Yellen said that while she had “constructive” conversations with her Chinese counterpart on Zambia’s debt in Switzerland during a first face-to-face …

Dragging debt talks in Sri Lanka put spotlight on Chinese loans
2 years ago

Dragging debt talks in Sri Lanka put spotlight on Chinese loans

The Hindu  

As Sri Lanka works hard to obtain financing assurances from its diverse creditors — a pre-requisite for the provisional $2.9 billion-IMF package — the loans obtained from China, the island nation’s largest bilateral lender, have come under sharp focus. Speaking in Parliament on Wednesday, Opposition legislator from the Tamil National Alliance Shanakiyan Rasamanickam accused China of stalling Sri Lanka’s IMF …

Chad’s creditors close to agreeing debt relief: French official
2 years, 2 months ago

Chad’s creditors close to agreeing debt relief: French official

Al Jazeera  

Alongside Ethiopia and Zambia, Chad is one of three countries seeking debt restructuring under a G20 initiative. Chad’s creditors are close to reaching a debt relief agreement, which would be the first under a new G20 debt restructuring framework, a French finance ministry source said on Monday. Alongside Ethiopia and Zambia, Chad is one of the three countries that have …

Facts derail Africa 'debt trap' smears
2 years, 5 months ago

Facts derail Africa 'debt trap' smears

China Daily  

Photo taken on Dec 7, 2021, shows a section of the 27.1-km Nairobi Expressway which is being constructed by the China Road and Bridge Corporation in Nairobi, Kenya. Talk of a so-called Chinese "debt trap" burdening African countries is pure disinformation and, contrary to what those behind the smears say, China has always been dedicated to easing Africa's debt pressures, …

China demands secrecy in its loans to developing countries: Study
3 years, 8 months ago

China demands secrecy in its loans to developing countries: Study

Al Jazeera  

US researchers say Chinese lenders require borrowers to prioritise repayments to Chinese banks ahead of others. The terms of China’s loan deals with developing countries are unusually secretive and require borrowers to prioritise repayment of Chinese state-owned banks ahead of other creditors, a study of a cache of such contracts showed. The researchers at AidData, the Washington-based Center for Global …

World Bank, IMF to Consider Climate Change in Debt Reduction Talks
3 years, 10 months ago

World Bank, IMF to Consider Climate Change in Debt Reduction Talks

News 18  

The World Bank is working with the International Monetary Fund on ways to factor climate change into the negotiations about reducing the debt burdens of some poor countries, World Bank President David Malpass told Reuters in a Friday interview. Malpass said the Bank and the IMF were studying how to twin two global problems – the need to reduce or …

China to resolutely deepen opening-up of financial sector: central bank governor
4 years, 4 months ago

China to resolutely deepen opening-up of financial sector: central bank governor

China Daily  

China will resolutely push forward the opening-up of the country's financial industry regardless of how the international situation changes, the central bank governor told Xinhua in a recent interview. China will continue implementing the phase-one economic and trade agreement with the United States, while measures announced to open up China's financial sector will continue, said Yi Gang, governor of the …

Debt as Chinese weapon?
4 years, 4 months ago

Debt as Chinese weapon?

The Hindu  

Declared by the United States and its allies as the leading threat to global stability, China has been accused of transgressions varying from stealing hi-tech secrets, spying and interfering in domestic politics of other countries to spreading viruses. On the other hand, lending to overseas investment and construction projects that can be included under the BRI, is estimated at around …

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