Posted 10/11/2023, 1:37:01 PM
Developing Countries Struggle with Debt Relief as China Rises as Major Creditor
- Hit by multiple crises, over 50 developing countries face repayment difficulties
- China has become the largest bilateral creditor, complicating debt relief efforts
- Secrecy around Chinese loans stalls progress on debt relief
- IMF and World Bank haven't traditionally offered debt relief due to preferred creditor status
- Rise of private bondholders adds complexity as they must agree to take losses
- Progress being made to coordinate creditors but debt relief still slow to arrive
