Germany’s finance minister welcomed China’s suggestion on Thursday that it may eliminate a demand for international banks to participate in debt restructuring for poorer countries, removing a major hurdle to debt relief.
Christian Lindner stated during a visit to Washington for the International Monetary Fund and World Bank spring meetings that China appears to “finally accept its responsibility as the major creditor of low-income countries.”
China, which is attending the conference in person for the first time in three years, has suggested that it will remove its demand for multilateral development banks to share losses with other creditors in sovereign debt restructurings for impoverished countries.
“This is seen as progress by the German government, and we welcome it,” Lindner added.
“China is a difficult partner to talk to, but we need China at the table to solve our debt problems, or there will be no progress,” Lindner added.
“It is clear to me that the United States and the European Union are close allies and partners in their values,” Lindner said, adding that dealings with China in essential infrastructure and intellectual property protection should be examined on a case-by-case basis.