People familiar with the matter revealed that the United States and China are discussing new measures to prevent the wave of sovereignty in emerging markets.
Bloomberg reported that this is one of the most important attempts for these two superpowers for economic cooperation for many years.More than 400 billion U.S. dollars (about S $ 537.2 billion) of debt repayment and find an alternative to high loan interest rates.
In addition to extending the repayment time, the United States and China are also exploring topics such as increasing the financing of the World Bank and other multilateral banks. The key is to launch these measures before the defaults of various countries and formally reorganize with creditors.
Any joint proposal proposed by Washington and Beijing on the issue of global sovereignty debt is expected to obtain the support of the entire 20th National Group (G20), the International Monetary Fund (IMF), and the World Bank.Since then, these three major organizations have been committed to solving global debt problems.
Sino -US joint proposal also must also obtain widespread support from private creditors. Private creditors occupy a greater share in emerging market sovereignty loans and hope that they have greater speech on the negotiating table.
The U.S. Treasury Department refused to confirm the specific details of the discussion, but in a statement: "We often discuss sovereignty debt with China. We also discuss how to ensure that the international financial structure meets the financing needs of low -income countries to meet the financing needs of low -income countries."
Chinese Foreign Ministry spokesman Mao Ning said at a routine press conference on Friday (February 23) that "China attaches great importance to the debt issues of developing countries", saying that China and the United States also "through double multilateral channels"Keep communication on debt issues.
The Chinese Ministry of Finance did not immediately respond to the comment request.
