The head of the International Monetary Fund (IMF), Kristalina Georgieva, reportedly warned Li Qiang, China’s new top economic official, that progress on debt restructuring deals for nations like Zambia, Ghana, and Ethiopia must be made quickly.
Georgieva said on Thursday that she found Li to be incredibly friendly and practical during her meeting with Li and other senior Chinese officials last month.
She claimed he gave her the assurance that he wants China to contribute positively to the settlement of debt relief cases.
“The truth is, and I was … very straightforward on that, it takes far too long for that (debt) resolution,” she told an event hosted by Meridian House and Politico.
“Yes, China has multiple institutions that deal with that, that makes it complicated domestically, but they have to speed up their participation.”
China has come under fire from the United States and other Western nations for causing delays in the creation of restructuring agreements for deeply indebted nations that have requested assistance under the Common Framework established by the Group of 20 major economies.
Georgieva pointed out that China had assisted in negotiating a debt relief agreement for Sri Lanka, a middle-income nation that was ineligible for aid under the G20 framework, as well as for Chad, and she urged China to demonstrate progress in other cases.
According to Georgieva, roughly 25% of emerging economies are at high risk and are currently experiencing borrowing spreads that are “default-like” and are present in about 60% of low-income countries.
Chinese leaders, according to Georgieva, are likewise concerned about fragmentation, but their top priority is maintaining domestic employment, with a goal of producing 12 million new jobs this year.
