Left Menu
Development News Edition

IMF's Georgieva says private creditors, China need to fully participate in debt relief

An IMF spokesman said that the total had recently risen from 43 countries when heavily indebted Mozambique signed up for the program https://www.worldbank.org/en/topic/debt/brief/covid-19-debt-service-suspension-initiative that suspends payments on official bilateral debt through June 2021. "What we have seen, regrettably, is the private sector shied away, and the countries themselves shied away from asking the private sector (for debt relief) because of fears that that may erode their future access to market.

Reuters | Updated: 15-10-2020 05:41 IST | Created: 15-10-2020 05:41 IST
IMF's Georgieva says private creditors, China need to fully participate in debt relief

International Monetary Fund Managing Director Kristalina Georgieva on Wednesday called for increased participation in debt relief for poor countries by private creditors and China, saying this was key to its success and a potential framework for debt restructurings.

Georgieva told a news conference that private creditor participation in a debt service suspension program for poor countries has been largely non-existent, with only three of 44 countries signed up for the program reaching out to private creditors. An IMF spokesman said that the total had recently risen from 43 countries when heavily indebted Mozambique signed up for the program https://www.worldbank.org/en/topic/debt/brief/covid-19-debt-service-suspension-initiative that suspends payments on official bilateral debt through June 2021.

"What we have seen, regrettably, is the private sector shied away, and the countries themselves shied away from asking the private sector (for debt relief) because of fears that that may erode their future access to market. Access they have earned the hard way in previous years," Georgieva said. She added that only some of China's official lending entities have participated.

"What we are also hearing from China is a recognition that they are a relatively new creditor, but they are very large creditor, and they need to mature domestically in terms of how they handle their own lenders, the coordination among them," Georgieva said.


TRENDING

OPINION / BLOG / INTERVIEW

Turbulence surrounding tobacco control in Ghana

... ...

Smart healthcare: IoT redefining the way healthcare is delivered

As the world is embracing the new wave of digitalization triggered by the pandemic and the arrival of 5G, the adoption of IoT devices will further boom. With adoption set to soar, IoT security issues and other challenges cant be ignored any...

Refugee compassion and response: Ideas to mitigate disasters now and in their future

Their homeland becomes a forbidden territory for them and more likely than not, their journey to foreign soil is no less traumatizing, not to say deadly. It is crucial to help refugees live a life of dignity and purpose....

Inadequate water infrastructure causes a tidal wave of coronavirus in rural Alaska

... ...

Videos

Latest News

Kerala reports 3,382 new COVID-19 cases in the last 24 hours

Kerala has reported 3,382 new COVID-19 cases in the last 24 hours, according to the State Health Department, on Monday. Besides, 21 people lost their lives within 24 hours due to the novel coronavirus in the state.Out of the total cases rep...

NATO mulls Afghan dilemma as US draws down, attacks mount

NATO Secretary-General Jens Stoltenberg said Monday that the military alliance is grappling with a dilemma over its future in Afghanistan, as the United States starts pulling troops out while attacks by the Taliban and extremist groups moun...

Sao Paulo imposes COVID-19 restrictions as cases surge again

The state of Sao Paulo, home to Brazils biggest city, imposed stricter social distancing measures on Monday as it wrestles to contain a fresh rise in COVID-19 cases.Opening hours and capacities for bars, restaurants and shopping malls will ...

Iran opposition suspected alongside Israel in scientist's killing, Shamkani says

A senior Iranian official said on Monday an opposition group was suspected alongside Israel in the killing of a prominent Iranian nuclear scientist, an attack that has raised the prospect of a new standoff between Tehran and its longtime en...

Give Feedback