A senior official of the People's Bank of China said that because multilateral development banks do not provide debt reduction, Chinese creditors are even hesitant in terms of participation in sovereign debt restructuring.
According to Bloomberg, Jin Zhongxia, the director of the Central Bank International Department, reiterated at a online seminar that Beijing hopes to adjust the current specifications of the country's overseas debt reorganization, including providing direct debt reduction and exemption from the World Bank and other institutions.World Bank rejected this suggestion earlier.
Jin Zhongxia also said that because the multilateral development bank does not participate in debt restructuring, the official bilateral creditors are actually partially not related to these creditors.
He pointed out that when the debt restructuring proposed by the creditors who feel privileges is actually promoting other major creditors to bear the losses, the mentality of Chinese creditors will become hesitant.
Jin Zhongxia claims that providing debt -deductibles that will affect the credit rating of multilateral development banks, which can be solved by donating capital to increase capital.He added that multilateral development banks participated in the previous global debt reduction operation.
Jin Zhongxia said that China supports the multilateral mechanism of sovereign debt restructuring, and the leadership role of the International Monetary Fund (IMF) in coordinating debt reduction work.Sustainable analysis reports should be "improved transparency".
Jin Zhongxia suggested that the debt used to provide funds for "productive assets that generate cash flow" can be treated differently from other debt in the reorganization.He also said that there is still room for discussing how to deal with national currency debt in debt restructuring and state -owned enterprise loans.
Jin Zhongxia also questioned whether the debt problems faced by some developing countries in recent years mean that there is a "systemic debt dilemma" in the world, and it is added that he has said that he has created the "common framework" of the Group 20 Group.Come to solve the problem of sovereignty debt.
Jin Zhongxia said that it seems to be in a systematic way to deal with non -system crisis, which makes him feel puzzled.
Jin Zhongxia reiterated the position of Beijing, that is, the loan issued by the National Development Bank should be classified as a private lending.He claimed that the loan decision of the Bank of China was "purely based on business judgment."
