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The official bilateral debt of the poorest countries to the G20 countries reached $ 178 billion in 2019, with 63% owed to China.
China has extended debt relief to developing countries totaling US $ 2.1 billion under the G20, the highest among group members in terms of deferred amount, the minister said Friday. of the country’s finances Liu Kun.
Liu’s comments come as African countries, grappling with the COVID-19 pandemic, face another debt crisis and will need more long-term help than the latest G20 Debt Service Suspension Initiative (DSSI) offers them. to ward off problems and keep the much needed investment coming up.
The China International Development Cooperation Agency, the country’s aid agency, and the Export-Import Bank of China, the official bilateral creditors, have suspended debt service payments from 23 countries, worth a total of $ 1.353 billion, has Liu said in a statement on the ministry. website.
China Development Bank, as a commercial creditor, has signed agreements with developing countries in the amount of $ 748 million by the end of September, the statement added.
However, this is minimal compared to the debt that developing countries owe to China. According to a World Bank study, the poorest countries’ official bilateral debt to the G20 countries reached $ 178 billion in 2019, with 63% of the total due to China.
China promises supplies of its COVID-19 vaccine to developing countries [File: Thomas Peter/Reuters]
One-third of the $ 30.5 billion in public debt service payments due in 2021 by ISD-eligible Sub-Saharan African nations is owed to official Chinese creditors, while a further 10% is tied to the China Development Bank, according to the ‘Institute of International Finance.
The United States, China and other G20 countries have offered relief to the poorest countries in the world, many of which are in Africa, until at least mid-2021 and will decide whether another six-month extension is needed in April next year. year.
Liu said that China is willing to step up financial aid for the countries in developing and given more support to those who are hardest hit by the pandemic, and under great stress. It will also prioritize the provision of any COVID-19 vaccine to poor economies.
China will also consider making donations to a multilateral debt relief facility if the World Bank decides to create one, Liu said.
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