China tells IMF willing to take constructive part in debt talks

Premier Li Keqiang told the head of the International Monetary Fund that China is open to participating in multilateral efforts to help heavily indebted nations “in a constructive manner,” China Central Television reported.

“China is willing to take part in resolving relevant countries’ debt issues,” Li said in a phone call Wednesday with IMF Managing Director Kristalina Georgieva, according to CCTV. “China maintains that all sides should take joint action and share equitable burden,” he said.

China, a major lender to debt-laden countries such as Sri Lanka and Pakistan, is mired in disputes with multilateral banks over which parties should take the lead in restructuring sovereign debt.

The IMF is considering approving a Sri Lanka bailout without the formal assurance of debt-restructuring support from Beijing, Bloomberg News reported last month.

The Chinese government, which accounts for about 52% of the bankrupt nation’s bilateral debt, has offered term extensions via state-owned policy lender Export-Import Bank.

Georgieva told Li that the IMF wants to strengthen coordination and cooperation with China to handle the debt crisis in developing countries, CCTV reported.

(Source: Bloomberg)