The International Monetary Fund (IMF) Managing Director, Kristalina Georgieva, has said that China’s finance minister and central bank governor will be joining a roundtable discussion in February in India, Reuters reported.
The meeting will bring together creditors, including traditional lenders from advanced economies, new creditors such as China, Saudi Arabia, and India, as well as representatives from the private sector. The goal of the meeting is to bring all parties together with debtor countries to discuss the issue of debt relief and find a solution that benefits both sides.
“China has to change its policies because low income countries cannot pay,” Kristalina Georgieva said in a CBS’ 60 Minutes interview on Sunday.
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“What we are working towards is to bring all creditors, the traditional creditors from advanced economies, new creditors like China, Saudi Arabia, India, as well as the private sector, and put them around the table with the debtor countries,” she added.
According to Georgieva, debt relief is crucial for heavily indebted nations to avoid negative consequences such as cuts in social services. She believes that China needs to change its policies to ensure that low-income countries are able to repay their debts. This roundtable discussion will be the first of its kind and will take place on the sidelines of the G20 finance officials meeting in India.
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The IMF Managing Director, being the first person from an emerging market economy to head the IMF, understands the challenges faced by developing countries and is determined to find a solution that will benefit all parties involved. The participation of China’s finance minister and central bank governor in this discussion highlights the importance of the issue and their willingness to work towards finding a solution.