China has increased its debt relief to developing to $2.1 billion under the G20 framework making it the largest debt relief by any member state of the group. This information was revealed by China’s Finance Minister Liu Kun.
The corona virus pandemic has really injected a lot of damages in developing countries leaving most of them starring at debt crisis since a majority of them have huge public debts. Most of these countries require more long term help than what the G20 Debt Service Suspension Initiative (DSSI) is offering them so as to come out of the economic slowdown.
Minister Liu said the country’s aid agency, China International Development Cooperation Agency together with the Export-Import Bank of China (EXIMC) have suspended debts payments from 23 countries worth $1.353 billion.
Additionally, Liu said The China Development Bank (CHDB), a commercial lender, entered into agreement with developing countries involving restructuring of debts payments amounting to $748 million.
Citing World Bank’s records, at the end of 2019 developing countries owed G20 countries a total of $178 billion in which 63% of the debt was owed to China only.
Minister Liu said China is more than willing to extend its financial help to these developing countries which are majorly found in Africa. He further added that China will also be prioritizing supply of COVID-19 vaccine to developing countries.