China proposes debt suspension to help developing countries recover

  • AseanPlus News
  • Friday, 29 May 2020

Kenyan labourers and a Chinese foreman work to finish the construction of a bridge at Nairobi National Park in Nairobi, Kenya. China hopes to work with other Group of 20 members to implement the Debt Service Suspension Initiative for the poorest countries. - AP

UNITED NATIONS (Xinhua): China on Thursday (May 28) called on multilateral and private creditors to take action and join debt suspension and relief for developing countries.

"Additional Special Drawing Rights provided by the International Monetary Fund (IMF) is also vital for easing the lack of liquidity in developing countries," according to a Chinese statement delivered at the virtual High-Level Event on Financing for Development in the Era of Covid-19 and Beyond.

"China will work with all parties to reach early consensus on this issue, so that the IMF will move forward accordingly," it said.

Convened by Canadian Prime Minister Justin Trudeau, Jamaican Prime Minister Andrew Holness, and United Nations (UN) Secretary-General Antonio Guterres, the virtual event aims to advance concrete solutions to the development emergency caused by the Covid-19 pandemic.

With more than 50 heads of state and government participating, the high-level event was the most inclusive gathering of countries to focus on the socio-economic recovery and financing needs amid the pandemic.

"As Covid-19 is spreading across the world, developing countries face increasing challenges on financing for development. China empathises with their difficulties, and supports the international community in making joint efforts to help developing countries to mobilise resources to combat the pandemic and stabilise their economy," it noted.

The fundamental approach to meeting the financing challenges of developing countries, it said, is to strengthen international development cooperation and increase input in development, in order to provide more resources for developing countries and help them enhance self-development capability.

"We should support the UN in playing a coordinating role in implementing the 2030 Agenda, and support UN agencies in mobilising resources and helping developing countries fight the pandemic and achieve recovery," said the statement.

The statement noted that in recent months, guided by the vision of a global community with a shared future, China launched the largest global emergency humanitarian action since the founding of the People's Republic of China.

Until now, China has provided emergency assistance to nearly 150 countries and four international organisations, sent 27 medical expert teams to 25 countries in urgent need, and exported 61.9 billion facial masks and 280 million protective suits.

China will work with other Group of 20 members to implement the Debt Service Suspension Initiative for the poorest countries, and is also ready to work with the international community to bolster support for the hardest-hit countries under the greatest strain of debt service, so that they could tide over the current difficulties, the statement said. - Xinhua

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China , Covid-19 , economy , IMF , debt , suspension , developing , countries


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