The United States has repeatedly criticized China for its “delay” in debt relief.
BENGALURU, (Reuters) – The World Bank will “give as much concessionality as possible to the debt treatment” of troubled economies, its president said on Saturday during a meeting with the International Monetary Fund, India, China and other creditor countries.
The remarks come amid calls from China, the world’s biggest bilateral creditor, that global lenders should cut lending to developing countries hit by the impact of the Russia-Ukraine war and the Covid pandemic. -19.
The United States, meanwhile, has repeatedly criticized China for its “brakes” on debt relief for dozens of low- and middle-income countries.
“The World Bank is committed to providing net positive flows in a way that maximizes concessionality in the restructuring process,” David Malpass said at the Global Sovereign Debt Roundtable in the Indian city of Bangalore in sidelines of the G20 financial leaders meeting.
“We will give as much concessionality as possible to debt treatment.”
Malpass also said he had taken note of “constructive remarks” from a Chinese central bank deputy governor at a G20 meeting on Friday that “delivered progress” on resolving debt issues.
Reuters reported earlier this month that India, the current chair of the G20 bloc, is drafting a proposal for G20 countries to help debtor countries by asking lenders to take a large haircut on loans.
On Friday, Chinese Finance Minister Liu Kun told G20 financial leaders that international financial institutions and commercial creditors should follow the “joint action, fair burden” principle in debt settlement.
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