The largest creditor of poor and emerging nations, China, was accused by US Treasury Secretary Janet Yellen on Friday of impeding international attempts to reduce these nations’ debts, particularly those of African nations.
“The obstacle to achieving the progress of the largest major credit country is China,” the Minister of Economy and Finance at Joe Biden Administration said at a press conference on Friday at the headquarters of the International Monetary Fund in Washington.
In order to bring China to the table and encourage the adoption of more practical answers to these issues, she continued, “hence, many discussions took conducted on what we can do.
Before the conclusion of the autumn meetings of the International Monetary Fund, the World Bank, and the gathering of the financial ministers of the Group of Seven and the Group of Twenty, Yellen was giving a speech.
The International Monetary Fund and the World Bank of China call on the largest creditor nation in the world to take part in the G20’s common framework of negotiations for debt restructuring of poor and developing nations.
The American minister earlier acknowledged that “a few countries want to resolve their debts inside the combined framework of the International Monetary Fund” during a meeting with her peers in the eurozone.
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She continued, saying that Beijing “Do not participate in a productive manner” and that “China is a significant aspect that explains why that does not work.”
Due to the Kofid-19 pandemic’s economic harm, several nations have been forced to borrow money once more, leaving them with a significant debt that makes the high interest rates meant to fight inflation even worse.
The Treasury Minister acknowledged that the situation in emerging nations like those in Africa is “extremely unsettling
Yellen expressed concern that “debt problems have worsened for African countries,” while also recognising the “need to move forward toward a better and more efficient framework to address the issue of excessive debt.
Between 500 and 1 trillion dollars are thought to represent the total outstanding balance of official Chinese loans, with the majority going to low- and middle-income nations.
At least 44 countries are now the equivalent of more than 10% of its GDP for Chinese lenders, according to one of Yallen’s advisers who made the statement at the end of September.
Beijing is accused by Washington of impeding efforts to reduce African nations’ debt.
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