China announces debt relief plan for poor countries

China has confirmed that it wants multilateral development banks to participate in the rescheduling of the debts of poorer countries, as part of a three-point plan that it put forward during talks with the World Bank and other financial institutions in the framework of the Bank’s spring meetings and the International Monetary Fund.

Wang Wenbin, a spokesman for China’s Ministry of Foreign Affairs, put forward the proposals made during the sovereign debt round table on the sidelines of the Washington meetings, providing a new vision of China’s demands for a solution to the debt crisis of the world’s poor countries.

First, the world’s banks offer solutions to address the debt issue as soon as possible, and second, the International Monetary Fund shares information on countries’ debt sustainability as soon as possible…. Third, the parties concerned must agree on a single approach so that all creditors participate in the process on similar terms as soon as possible. “

World Bank President David Malpass said China, as the world’s largest creditor to emerging countries, should be ready to agree on an international loan restructuring process for countries with high levels of debt.

Malpass, who co-chaired the round table on global sovereign debt, added that while some progress had been made and China had relaxed its position, much work remained to be done to deal with the issue.

China needed to sign a restructuring structure “for the debt of poor countries.

After the round table on global sovereign debt, the World Bank’s International Development Association revealed plans to increase grants and concessional loans to poor countries by $360 billion.