A senior official of the US Ministry of Finance urges China to participate in debt reduction and exemptions to fiscal fragile countries to avoid systemic sovereign debt crisis.
According to Bloomberg, Brent Neiman, a consultant of US Finance Minister Yellen, said in an event hosted by the Institute of International Economics of Peterson: "If you do not take action on these debts,It may mean that there are difficulties in debt repayment in low -to -medium -income countries in the next years, and they will also cause their insufficient investment and slowing growth. "
He said that although China is not the only creditors who are not willing to provide "fast and effective" help, they do not participate in international debt reduction and exemption.
The practice of providing loans to poor countries in China has been criticized internationally.According to the World Bank's data, nearly 40 % of the bilateral and private industry debts that the most poor countries in the world need to repay this year are borrowed from China.
