China willing to join multilateral debt-relief efforts to help poor nations, Li Keqiang tells IMF head
- Chinese premier tells IMF’s Kristalina Georgieva all parties should work together and ‘shoulder the burden fairly’ to aid highly indebted countries
- Beijing is the largest bilateral creditor to the poorest countries, but it faces disputes with multilateral lenders over debt restructuring
China, the largest bilateral creditor to the world’s poorest states, has been in disputes with multilateral lenders over which parties should spearhead efforts to restructure sovereign debt.
China – the reluctant debt relief leader in a debt-distressed world
“China is willing to constructively participate in solving the debt problems of relevant countries under the multilateral framework,” Li was quoted by Xinhua as saying.
“At the same time, it advocates that all parties should take joint action and shoulder the burden fairly, so as to help low-income countries overcome economic difficulties and achieve sustainable development.”
According to Xinhua, Li told Georgieva that the “continued friendly cooperation” between China and the IMF would benefit both parties and help the international community cope with growing challenges.
Georgieva praised China’s efforts in helping developing countries cope with the debt crisis, adding that the IMF was open to strengthening coordination and cooperation with Beijing.
‘The worst is yet to come’: China’s slowdown weighs on global economy
Li also said China responded “decisively” and “in a timely manner” when its economy was hit by the Covid-19 pandemic and other factors last year.
China’s economy grew by 3 per cent in 2022, and while it was above analysts’ expectations, it missed the government’s target of “around 5.5 per cent”.
It marked the first time in more than 40 years that China’s GDP failed to reach the global average, which was roughly 3.4 per cent for 2022.
Li said China’s policies had stabilised its economy and that economic growth was picking up. In January, the IMF upgraded its forecast for China’s gross domestic product in 2023 to 5.2 per cent, largely owing to the nation’s full reopening.