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China is calling on multilateral creditors, such as the World Bank, to explore various options to provide more support to poorer countries in easing their debt burden, Finance Minister Liu Kun said.
While providing positive net inflows to countries eligible for the Debt Service Suspension Initiative (DSSI), multilateral creditors should take part in the debt treatment process to help poorer countries get through tough times, Liu said in an interview published in the Ministry of Finance website Friday.
The G20 launched the DSSI in April to address the immediate liquidity needs of low-income countries, as the COVID-19 pandemic added risks of debt vulnerability.
Multilateral creditors now have the lion’s share of debt service payments owed by poorer countries, Liu said, noting that they account for nearly half of the public and publicly guaranteed debt of countries eligible for the ISD.
If the World Bank takes part in debt treatment through the creation of a multilateral debt relief facility, China will positively consider providing donations to help ease the debt burden on poorer countries, Liu said.
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