The Group of 20, a multilateral forum of major economies, announced on April 15 that it would suspend debt service payments from the world’s poorest countries. The International Monetary Fund did the same for 25 countries.
But more relief may be necessary, and China, the world’s largest bilateral lender, has come under particular scrutiny to do more. At a June 18 virtual conference with African leaders, Chinese President Xi Jinping announced that China would write off interest-free loans for “relevant African countries” and might extend the G-20-sponsored repayment moratorium.
This may not make much of a difference. Interest-free loans constitute only 2 to 3 percent of Chinese loans issued to Africa since 2000 and would have been the easiest for low-income countries to pay off.… Seguir leyendo »