‘Very fruitful exchange,’ says IMF chief after roundtable with China on debt issues

International Monetary Fund (IMF) Managing Director Kristalina Georgieva, on Friday, said that she had a “fruitful exchange” with Chinese counterparts on debt issues.

The International Monetary Fund chief said this in a statement issued at the conclusion of the seventh “1+6” Roundtable convened in the province of Anhui by the Chinese authorities. Georgieva, World Bank President David Malpass and other financial leaders met in person in China’s Anhui province this week with officials from the People’s Bank of China, China’s finance ministry and its EXIM Bank and China Development Bank.

The focus of this year’s roundtable was on ‘Strengthening Multilateral Cooperation for Global Common Development.’

She praised and welcomed the decisive actions taken by the Chinese authorities. “We had a very fruitful exchange. We need to build on the momentum of the agreement on Chad’s debt treatment and accelerate and finalize the debt treatments for Zambia and Sri Lanka, which would allow for disbursements from the IMF and multilateral development banks,” said Georgieva

She further added that they talked about how they can “prevent individual cases of debt distress from triggering a global debt crisis.”

“The application of the G20 framework must become much faster and more predictable, and it needs to reach a broader set of countries We also see space for a platform for more systematic engagement on debt issues, where China can play an active role,” the IMF chief added.

She commended the Chinese government actions that were taken to stabilize the economy “in this very difficult time.”

“The Chinese economy faces complex challenges: the ongoing COVID 19 pandemic, pressure from difficulties in the property market, and slowing global demand. In that context, we welcome very much the decisive actions taken by the Chinese authorities,” the IMF chief said.

World Bank President David Robert Malpass welcomed support voiced by Premier Li Keqiang for a “systematic engagement on debt” during the meetings, and underscored the need for transparent disclosure of China’s loan contracts, and removal of non-disclosure and non-restructuring clauses and hidden collateral and escrow arrangements.