As dominant creditor, China must ‘step up’ on debt restructuring, Indonesia’s Indrawati says

Indonesian Finance Minister Sri Mulyani Indrawati, speaking in an interview on Friday, welcomed news that China would join a creditor committee for Zambia, one of three countries that has sought debt relief under the G20 Common Framework agreed with the Paris Club of official creditors.

Indrawati said there was still work to do to move forward with Zambia’s long-stalled debt process, and other countries would also need debt relief and restructuring in the future.

“There will more cases coming,” Indrawati said. “At some point China has to recognize that they need to step up to actually take that kind of leap, and providing the platform for all creditors to be able to discuss … how this restructuring is going to be real.”

International Monetary Fund Managing Director Kristalina Georgieva on Thursday said China had committed to joining Zambia’s creditor committee amid complaints from Zambia’s finance minister about delays to its debt restructuring.

Zambia became the first COVID-19 pandemic-era default in 2020 and is buckling under a debt burden of almost $32 billion, around 120% of its gross domestic product.

Georgieva, U.S. Treasury Secretary Janet Yellen and others have called for moves to accelerate the debt restructuring process and make it more efficient.

Ethiopia and Chad also signed up to the Common Framework more than a year ago and have yet to receive debt relief.

China, which has become the world’s largest creditor, has been reluctant to move forward with restructuring deals, according to Western officials.

Indrawati said G20 members made clear their concerns about the need to jump-start the slow-moving debt restructuring process during this week’s spring meetings of the IMF and World Bank members, with some 60% of low-income countries now in or at high risk of debt distress.

“After a lot of the discussion, especially about the role of China, in the end they agreed to make the creditor committee,” Indrawati said. “That’s progress.”

“Because they are becoming very important and dominant, they also need to have the ownership as well as leadership on how this kind of situation needs to be solved,” she added.

Indrawati said the Paris Club could provide a reference, but it was up to current creditors – including China – to agree on how to treat countries that can no longer service their debts. She said she was optimistic that G20 members would make progress on adjusting the Common Framework to become more effective over the course of the year.

(This story corrects to remove extraneous word from first paragraph)

(Reporting by Andrea Shalal and David Lawder; Editing by Will Dunham)

Source link

0 0 votes
Article Rating

Notifier de
0 Commentaires
Commentaires en ligne
Afficher tous les commentaires
Reset Password

Avertissement sur les risques :

Le trading peut vous exposer à des risques de pertes supérieures aux dépôts et ne convient qu’à une clientèle avisée ayant les moyens financiers de supporter un tel risque. Les CFD sont des instruments complexes et présentent un risque élevé de perte rapide en capital en raison de l’effet de levier. Entre 74 et 89% des comptes de clients de détail perdent de l’argent lors de la négociation de CFD. Vous devez vous assurer que vous comprenez comment les CFD fonctionnent et que vous pouvez vous permettre de prendre le risque élevé de perdre votre argent. Ce site n’est en aucun cas une offre de conseil en investissement ni une incitation quelconque à acheter ou vendre des instruments financiers. Trader le Forex et/ou les CFD’s implique un niveau de risque élevé, et peut ne pas être approprié car vous pouvez subir des pertes supérieures à votre dépôt. L’effet de levier peut être en votre défaveur.

Vous devez être conscient et avoir une compréhension complète de tous les risques associés au marché et au trading. Le site peut être amené à produire des commentaires d’ordre général, ce qui ne constitue pas des conseils en investissement et ne doit pas être interprété comme tel.

Veuillez recourir aux conseils d’un conseiller financier extérieur. Le site décline toute responsabilité pour les erreurs, inexactitudes ou omissions et ne garantit pas l’exactitude ou le caractère complet des informations, textes, graphiques, liens ou autres éléments contenus dans cette documentation. Toute information et toute mise à disposition sur le site ont un caractère privé.