(New York Comprehensive News) President of the International Monetary Fund (IMF) said that China is changing his thinking to think about how to help national reorganization debt that cannot repay debt.This shows that the world's second largest economy will be rescued by the country where it is in trouble.
IMF President Kristalina Georgieva said in an interview with Bloomberg that China has joined the ranks of the traditional Western creditors of the Paris Club and aware that as the largest loan of the economy in China, China is necessary to establish a better establishment of a betterDebt reorganization mechanism.
Geolkeva said that, given that the lack of coordination between different government agencies and entities has always been lacking in coordination, China ’s biggest challenge is to understand the scope of its own loan.Although China has long refused to provide relief on the grounds of developing countries, this idea is beginning to change.
She pointed out that, instead of facing the danger of borrowing the debt of the loan, any lender is more eager to understand how to reorganize the debt.
"My point is, we must drag them -maybe this is impolite -we need to go together. Because if we don't do this, many countries are difficult."
More than 70 low -income countries have a total liabilities of US $ 326 billion (about S $ 435 billion), more than half of them have fallen into debt dilemma, including Zambia, Ethiopia and Ghana.Golkaya pointed out that most of these countries' largest creditors are China. For example, about 75%of the creditors of Zambia's debt that need to reorganize are China.
Generally speaking, if the national debt reorganization is to be carried out, creditors must agree to reduce the loan interest rate, extend the loan period or cancel part of the debt.The New York Times Chinese website said that in the past three years, China has faced various domestic economic difficulties, has been reluctant to bear debt loss, and ask other loan institutions such as the World Bank to bear it.
