Chinese Premier Li Keqiang told the head of the International Monetary Fund that China is open to participating “in a constructive manner” with debt restructuring efforts.
During a call with IMF Managing Director Kristalina Georgieva, Li said: “China is willing to take part in resolving relevant countries’ debt issues,” and that “China maintains that all sides should take joint action and share equitable burden.”
Li’s comments reflect tensions between China and multilateral development institutions about dent restructuring in countries like Sri Lanka and Zambia. China insists that these lenders also accept losses, which Georgieva has resisted.
The two also discussed China’s economy, with Li saying that the post-COVID recovery is proceeding faster than Beijing had expected.
WHY IS THIS IMPORTANT? While very few specifics have been released, the call arguably signals that China and the IMF might be inching forward on debt compromises, possibly buoyed by a better-than-expected economic recovery in China.
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