China’s stand on debt restructuring encouraging, says Sitharaman

Sitharaman also thanked Chinese Finance Minister Liu Kun. “We were able to arrive at a consensus because of China’s cooperation and willingness with the membership for particularly mutually beneficial issues.”…reports Asian Lite News

After conclusion of the Third G20 Finance Ministers and Central Bank Governors (FMCBG) meeting at Gandhinagar on Tuesday, Union Finance Minister Nirmala Sitharaman said that China’s stand on debt restructuring was “encouraging” and she expected China to be “onboard” before the G20 leaders’ summit in New Delhi in September.

“Today it (China’s response) appeared encouraging,” Sitharaman told mediapersons when asked about the stance of China with regard to debt restructuring at a press conference held after the conclusion of the two-day summit.

China is one of world’s largest bilateral creditor and G20 nations are in talks with it to use the “common framework” of G20 to provide debt relief. Asked how optimistic she was regarding China coming “on board” by September as part of common debt resolution framework, Sitharaman said, “I am very hopeful.”

Sitharaman also thanked Chinese Finance Minister Liu Kun. “We were able to arrive at a consensus because of China’s cooperation and willingness with the membership for particularly mutually beneficial issues.”

An “outcome document and chair summary” released after the conclusion of G20 meeting also touched upon the issue of debt resolution without naming China. “We re-emphasise the importance of addressing debt vulnerabilities in low and middle-income countries in an effective, comprehensive and systematic manner. We continue to stand by all the commitments made in the Common Framework for Debt Treatments,” the statement said.

On Tuesday morning, a bilateral meeting between India and China was held on sidelines of the FMCBG summit. “The ministers discussed G20 finance agenda items in context of the ongoing G20 meeting. Minister Liu Kun appreciated India’s leadership in G20 and stated that a lot of results have been achieved so far. Key discussion items included deliverables under G20 India Presidency, including strengthening MDBs (multilateral development banks), global debt vulnerabilities and GPFI (Global Partnership for Financial Inclusion). Minister Liu Kun also appreciated work of the G20 Independent Expert Group for strengthening MDBs setup under G20 India Presidency,” the Union Finance Ministry later tweeted.

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