Two of the world’s most prominent development finance leaders, Emmanuel Moulin (left), chair of the Paris Club, and World Bank President David Malpass (right), separately named China as one of the key factors in the worsening debt crisis among developing countries.
When asked by the Financial Times why the G20’s Debt Service Suspension Initiative (DSSI) was not successful, Moulin, who is also head of the French Treasury, seemed to hold Beijing partially responsible. “Some countries have decided not to apply for the final [DSSI] extension as they didn’t want to create difficulties with China,” Moulin said. “Some countries have preferred to talk to China and other creditors about new money rather than requesting help under the DSSI.”
