Persistent and devastating debt problems plaguing a number of countries in the developing world will be a key topic at the G20 summit in New Delhi this weekend.
As the world's largest bilateral creditor, China is central to talks on making tangible progress in relieving the debt burden of many countries, through the "common framework" led by the G20. Of the approximately 70 low-income countries facing a collective debt burden of $326 billion, more than half are in or near debt distress, including Zambia and Ghana. In many of these cases, China is the largest creditor. For example, 75 percent of Zambia's debt that must be restructured is owed to China, according to the International Monetary Fund.
Source (Al-Asharq Al-Awsat Newspaper, Edited)
